FHA and Investor Specialist

The jury is still out on Bernanke. I happen to like him over Greenie. Who I felt was "Lost in Space"...

Scott, there was a great article a few months ago about Bernanke and his home town.  His HS apparently didn't offer Calculus, so he taught it to himself.  He spoke about growing up in a small town, etc. 

Michael,

 Do you really try and push clients into loans you know are bad for them. Loans that you feel will come back and bite them.

AS a Realtor part of our job is to give good advice. I have been in the mortgage business and have some insight on the different products out there. I also work with laon officers that know the product. 

The loans can get really creative. Private money especially.  However people make their own decisions and as Realtors we can only advise them. Unfortunately they don't always take that advice.

 I try and explain what happens in a adjustable. How the payment can rise a couple hundred dollars a year. The only time I recommend an adjustable is if the client has a less than 3 year exit on the property.

Otherwise fixed rate mortgages are low enough that they should be able to qualify.

Prepayment penalties are really scary as I sell homes and the sellers mortgage pops up with a penalty that the seller wasn't even sure was there.  Know your loan officer and have them explain the loan to you and your client. Then talk with your client in general as most clients don't want you to really know their financial status. This is kinda funny they will give all their finances to someone on the phone who is unlicensed with no background check but won't tell us and we are being hired to find them their home. LOL..

Anyway we are to try and give good advice with our clients interest above our own.

My advice to Realtors is not to sell your clients down the road just because you want to close a deal. Ask yourself would you want this loan? If no then explain that to you client. They have the right to know...

 

I think the next 18 months will be the biggest test of the mortgage industry's deregulation. The FED will look at how well certain areas did while looking to rein in some of the rogue lenders who prey on consumers. Deregualtion is a good thing but some of the gaps / loop holes have to be ammended over time. This is the first hard turn in the national housing market since the 1980's so Bernacke's leadership on this matter and inflation in the coming year should determine if he is as good as Greenspan or maybe better...

Paul and Ken, thanks for the input.

 Ken, I do not personally make questionable loans.  When a lender pre-approves someone for say a 700k loan, do you ever call the lender back and say they now need 750k?  My point is that if as a community we did not make bad loans and bad home sales to those that could not afford it, there would be no need for government intervention.

Michael I read my comment again, I wsa not atacking you.  Yes I have asked a lender to raise the loan amount during contracts talks. However I still look at the loan and talk with my client about it.

I for one and I can't believe I am writing this, think that the government needs regulations in the mortgage industry. I also feel that the loan officers should be licensed just like us. Bonded, educated and accountable for their actions.

As you and I might look out for our clients needs their are agents out there who look at themselves first. It is human nature. It happens in every industry.

Ken

Ken, thanks for the response and my apologies.

I agree with you that in general I don't think Government involvement in industry is ever a good thing. but in this case is necessary.  I also feel there should be a much stricter test, similar to a Series 7 exam for stockbroker's, for Loan Officer's nationally. 

mr. bernance should attend some closings, particuarly for first time homebuyers, so that he can se the amount of paper work and how little the buyer understands and if they actually care, at that time.

 

feel free to check out my blog about fraud. just say no.  

perhaps Bernanke should try to explain the TIL to buyers at the closing!!!

When it comes to the TIL...I have had agents say one thing, the closing agent say another, and the attorney say yet another explanation of what it means!!

I have also heard many many times from escrow agents and attorneys that the Truth In Lending has nothing to do with the Truth!

I call it the truth in confusion disclosure!  There actually is an excellent form that explains all of the different portions of the TIL.  Not all companies report a TIL the same way.  The best thing to do is have the client call the Loan Officer from closing to explain it.  Better yet, the LO should attend the closing to explain such things.