I wanted to write a follow up post to the one I wrote last month about Bank of America and their useless wonderful subordination department.  For those of you who read it, you remember my clients were forced to cancel their refinance (which saved them $300) because Bank of America would never respond on their subordination and finally denied it.  We have appealed the decision and here goes...

After fighting with Bank of America to reconsider, we finally got them allow me to write a "Benefits Letter" that outlined the potential savings and therefore lower Debt-to-income ratio for them as the 2nd lien holder.  They have sent us approval now to do the subordination, except we have to reduce the loan amount by $2000!  Now the clients are going to have to bring and extra $2000 to closing and as you can imagine they are not excited about it.

This whole ordeal has taken almost 2 months.  It has been a real nightmare to say the least.  So, even though this might end up with a happy ending (sort of) my advice to anyone that needs to subordinate a Bank of America 2nd mortgage... BEWARE!

Olan Carder
www.charlottemortgageonline.com

People say some crazy things when they get upset. 

We all know that ALL Realtors aren't liars.  Just like we know ALL lenders, politicians or attorneys aren't liars either.  ALL Bank CEO's aren't greedy con-artists, but it sure makes us feel better to have someone to blame for our problems in life!  When a crisis like this happen people want someone to blame, someone to punish.  I think as a country we have to very careful NOT to become one big lynch-mob.

I have noticed lately that our political leaders have become very populist in their reactions to this financial meltdown, but before we lynch everyone in the financial industry maybe we should take a second to think about this, after a "crowd" was responsible for...

• Crucifying Jesus
• Empowering Hitler
• Allowing Slavery

Following the "crowd" is something most of us are taught NOT to do growing up.  The problem is that most people do it anyway and it is just too easy to jump on board the "Hate-Train" and make accusations at people we don't like or understand.

I realize that a lot of people have done some horrifically dishonest things to cause this mess, but I also am smart enough to realize a significant portion of the problem is the news media acting as the Pied Piper leading the general public to their financial doom.  I hear comments all the time like, "Well everyone knows..." and "I heard on the news..." and those statements are typically followed by something completely false.

There are a lot of people to blame for the mess we are in, but casting blame at generalized groups of people  is just plain dumb.  It took a combination of stupid and dishonest people on all sides to cause a mess this big and to single out one group and "make them pay" is not the answer!

I think it would be better if we took aim before firing our finanical weapons of mass destruction!  I talk to hundreds of people about this mess and I find almost no one actually understands what caused this crisis.  I hear Fannie Mae, the government, liberals, Bank CEO's, Mortgage Brokers, Realtors, Builders, Appraisers, all blamed for this mess.  If you don't have a clue, you really shouldn't make accusations against people.  That's my policy.

Olan Carder
www.charlottemortgageonline.com

Everyone has heard about the first time homebuyer tax credit but many people still have questions.  There are several important changes made that make the new credit a lot better than last year's model.  If you would like to learn more about the new credit you can click below to read a full article on my outside blog.

Please comment on either site if you have questions.  I would love to find you the answers!

Click here to read full article!

Northern Trust, an investment bank that has remained profitable even through the last year, sponsors a PGA golf event.  Their event just received an enormous amount of criticism from certain members of congress becuase they help client events at "fancy hotels" and provided live bands at parties, etc.

Barney Frank wrote the CEO of Northern Trust a letter stating, "We insist that you immediately return to the federal government the equivalent of what Northern Trust frittered away on these lavish events."

"At a time when millions of homeowners are facing foreclosure, businesses and consumers are in dire need of credit, and the government is trying to keep financial institutions - including yours - alive with billions in taxpayer funds, this behavior demonstrates extraordinary levels of irresponsibility and arrogance,"

GIVE ME A BREAK!

This is just stupid.  Northern Trust is a profitable bank that didn't need or pursue the bail-out money.  To tell them they can't host an event that helps them market their business is just plain dumb.  Do we want banks that took bail-out money to FAIL????  You can't stop doing business!  That's not the answer. 

Northern Trust should be praised for managing their business so well that when mega-banks are failing they are still making profits!  Instead we bash them for appreciating clients, hardworking employees and giving millions to charity... is this really where we headed?

Olan Carder
www.charlottemortgageonline.com

Click here for the link to the CNBC article.

As a loan officer and Charlotte native this article really caught my interest.  It is basically connecting the overall impact on the economy with the sub-prime meltdown and showing how this has a huge effect on Charlotte as a banking center.  Charlotte residents have bragged for years about being #2 in the U.S. in banking, but that is not so good when the financial system is in crisis.

I think some things people need to consider before making a rash judgment on Charlotte's future is the fact that this area has become too large and diverse economically to be crippled by one company or even one industry.  Many large corporations have relocated to Charlotte or are planning to in the near future.  Businesses that have nothing to do with banking view Charlotte as a great place to be.

Kannapolis is home to the new NC Research Campus which is bringing thousands of high end workers to the Charlotte area.  Billy Graham Evangelistic Association is now headquartered here and the article mentions GMAC Financial Services and Morgan Stanley are looking to move to Charlotte.  There is a lot going on here and even though Charlotte is certainly going to lose some jobs and take a severe hit with the weakness of Wachovia and Bank of America, I think in the long run we will be just fine.

Olan Carder
www.charlottemortgageonline.com

OK I have calmed down and want to follow-up on my last post...

I just heard a congressman make a lot of sense and I realized that my last post threw them all under the buss!  This guy said that the government shouldn't be trying to make lenders lend, they should be creating conditions under which lenders WANT to make loans and good loans.  He said every time they try to make lenders lend it ends in bad loans.  He mentioned the community reinvestment act in particular.

Hallelujah!  There are some people that get it!

The problem right now was certainly not created because lenders didn't lend!  The current problems were created because lenders made too many bad loans.  The answer is for government to create conditions under which lenders want to make good loans... then when lenders are making good loans and are making money... SHUT UP and STAY OUT OF THE WAY!

Banks had rules before all of this for a reason.  It amazes me now how mad people get because they got what they asked for all along!

All you hear about is how high inventory is and the negative effect it has on prices in Real Estate.  I understand that what you hear from the media are national numbers, but honestly even I assumed Charlotte inventory has to be pretty high right now.

This past weekend I decided to drive around and drop in on some open-houses and meet some new agents.  I started by looking on the Internet to find some open houses that were near my house.  I blocked a couple hours and hit the road. 

First of all, I was suprised by how few open houses there were to visit.  I figured there would be a lot more... Second, I was very suprised by how few houses were listed for sale around my area.  I really thought I would see a lot more, and it has me thinking...

Is Charlotte Inventory high or low right now??

Olan Carder
www.charlottemortgageonline.com

I closed a refinance for one of my past clients on the 23rd and we had to subordinate a second lien they had with beloved Bank of America.  We called B of A and asked about the process which they said was normally 10 business days but also noted that we could pay an additional $75 fee to RUSH the process and we would have it in 5 business days. 

My processor had the closing attorney prepare the package and we sent it out on the 15th.  I personally paid the RUSH fee of $75 to help out my client. 

Well it is the 29th and still NO SUBORDINATION!  I called Bank of America and talked with a delightful lady in the subordination department.  Her comment was, "Sir, I understand your problem but you aren't the only one!"  Well, I don't know about my client, the closing attorney or my company... but I feel better!  Glad to know that I'm not the only one.  That's helpful.

She went on to tell me that she could escalate it (whatever that means) but she would need the tracking number.  I asked her to hold for a minute and I would get it. 

She hung up.

I could rip a phonebook in half right now!!!!!!  ARRRGGGGHHHH!!! 

If you are refinancing and we need to subordinate and existing second mortgage or equity line... BEWARE!  It will happen but it WILL NOT HAPPEN FAST!

Olan Carder
www.charlottemortgageonline.com

I am not writing this as an Obama fan or as an Obama hater.  I will be honest in that I did not vote for him, but I am trying very hard to approach his administration with an open mind.  Sometimes in this country we get so dogmatic in our political views that we fail to examine each decision or policy of man or party because we already "know" they are right or wrong based on whether they are a donkey or elephant.

I heard President Obama speak today on the economic stimulus plan and he said something that I thought was a remarkably simple yet brilliant idea.  They are making a website www.recovery.gov that will show where all the money in his plan is spent.  Accountability and transparency go a long way and I just wanted to write and let others know about this great idea.

If you visit the site right now there is nothing there.  It will not be up until the stimulus plan is passed.

Olan Carder
www.charlottemortgageonline.com

New consumer protection laws are being passed to protect the consumer... they won't!

You can not replace good sense with regulations.  The government continuously wants to add more rules, more paperwork and more requirements to getting a mortgage loan.  Not all the changes are bad, but they can NEVER take the place of the actual consumer using their head!

For the rest of the story click here!