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This Will Help You Understand What Your Lender is REALLY Dealing With

There is a tremendous amount of frustration between agents, clients and the lenders today as the mortgage mess gets worse and worse. This will give you some insight to what your lender is dealing with today.

When you log-on to the Countrywide website today, August 10, 2007, to check on a loan guideline or to get a rate, you get the following disclaimer:

countrywide

IMPORTANT NOTE:

Due to the rapidly changing mortgage market, our product availability and lending guidelines are subject to change frequently at this time.

For the latest product and guideline adjustments, please go to Products on the Home Page of CWBC. Please note that, while some products and guidelines may change, CWBC may not reflect those adjustments immediately. We are working to update our automated systems as soon as possible.

However, automated loan decisions on CWBC will not be issued a final Countrywide loan approval if the loan submission falls outside of the THEN CURRENT lending guidelines.

If you have any questions or need assistance structuring a loan transaction under the most current product and guideline set, please contact your Countrywide Account Representative.

===============================================================

Now, I don't want to hammer on Countrywide alone as all of the top banks are doing the same thing but this is a company whose slogan is "no one can do what Countrywide can."

In addition, the mission statement that you can find on their website says "...reputation is predicated on devotion and determination to achieve total customer satisfaction; goals of this initiative are to build trust, strengthen relationship..."

I believe its very hard for agents and mortgage lenders to build trust and strengthen relationships with our clients when the disclaimer on the website clearly is telling us to pre-qual and then PRAY that the program still exists the day when you go for a final approval in underwriting.

The new slogan for every bank out there should be "No one can promise what we can promise. Pre-qual and pray!!"

Posted by Aaron Gordon, Home Loan Consultant, Las Vegas, NV on 08/10/2007 04:42 PM

Comments (9)

lendinig guidelines, mortgage mess

9 Comments on This Will Help You Understand What Your Lender is REALLY Dealing With

AUG

2007

Thought you might find this entertaining!

What Are Mortgage Broker Dealing with? Funny

Very funny...it's a good point...but the market is what it is...I think countrywide has more to worry about than a slogan right now.

Jason--- I actually blogged that last night. NEW LENDING GUIDELINES---VERY IMPORTANT---PLEASE READ AND UNDERSTAND!!. Classic though!!

Rondel--- Countrywide and everyone else.

My colleague here had five loans - all ready for docs - fall out of their lender today. Another company rep is in with her now working on what could be done. We are hoping that Indymac Bank doesn't die before funding!

Alan--- I think IndyMac is safe for a while. Better act quick.

AUG

2007

the mortgage market isn't really to bad.

i'm not frustrated, sorry if you are.

cw can't update their web as fast as they can make changes and may not honor automated approvals.

so what, i have a solution.

DON"T USE THEM!

Jay--

I am not really sure you quite understood the point I was making. I am certainly not complaining the mortgage market is bad as I cannot remember when I have been busier. However, the industry is a mess. I don't think that is an opinion. Simply turn on the news, any financial channel, read a paper, or log on to ActiveRain. I think that's obvious.

My frustration comes from the fact that 90% of my business comes from real estate agents and previous clients, and their friends and family, who trust me time and again and have for years. They do this, I believe, because they know that I am a good communicator and professional who does what I promise.

Now, let me give you an example. On Monday, a man, who has referred me at least a dozen loans for the in last four years, called me to do cash-out refinances for four of his investment properties. He wants 90% loans and he wants secure options ARMs. I found a bank who would do it.

OK, now what do I tell him?

I cannot tell you with any confidence at all that this program will be around next week, let alone two weeks when I will try and get it closed.

So on Tues, I called him and said, "Mike, I THINK I can do this. I will not know for sure until we go underwriting and it actually funds, but I THINK we can." Those words sicken me as a professional and they should you too. And guess what? Yesterday I called the bank to make sure the product was still there and it's gone. There are thousands of stories like this today.

This isnt about automated systems, or Countrywide, or whom I should use. I should have the ability to use any bank out there that is loaning money for mortgages. That's my job.

This is about these banks all running their businesses in fear. In my opinion, if this is the way its going to be, each week they should put the risk managers in a room together, hammer out a new set of guidelines they can live with for that week, and committ to those guidelines for all loans locked that week only for the next 30 days.

They can change them each week they want or every day for that matter but at least give us the ability to maintain the trust and confidence our clients have in us that has taken years to build but will take days to destroy.

you said you found a bank that could do it, then informed the client, and then called the bank and the program was nor available. what made you think they could do it in the first place? it seems the phone call to the bank should have come first.

if an investor calls me and wants to do 4, cash out, 90%, option arm's i am going to immediately be concerned that that can be done. maybe your expectations need to be adjusted.

Jay---I appreciate your input but after about $200M in loan volume for the last four years, I feel pretty confident that I know what I am doing.

I am certainly open to new ideas however I refuse to lower my expectations of the banks I do business with. I expect them to do what they advertise and honor the committments of the day.

You misunderstood me. I did call them. I found the program on Monday. It was on their website on their guidelines. I then called my AE to confirm it.

However, of course I was skeptical about a NOO 90% secure option ARM in today's climate.

Thats why I called the client to let him know we "were on" but I did qualify it with the wait-and-see dialogue. And yesterday, Friday, I spoke with the rep who said, "Sorry, its now gone." And, by the way, it had been locked but they won't honor that either.

Just so you know, NOO 90% C/O refi option arm, actually still does exist with yet another bank whom I spoke with late yesterday. However, once again, who knows how long.

I can tell you this. So long as one lone bank out there offers it and I have one lone client who requests it, I will do everything in my power to find it and get it closed for him. That's how I built my business.

I got a referral Thurs night from someone who found me here on AR. They have been turned down by 6 other lenders who have all told them the property type, a condo conversion, which I wont get into the challenging details, is not able to be loaned on. The buyer found me here. I spoke with the listing agent who told me she has nearly given up and realizes "its impossible." I heard the story and also thought it was highly unlikely but I still went to work on it.

Within a few hours, I found an investor who has no problem with the property type at all. It meets guidelines and yes, I spoke with them. However, once again, I will simply pray that they don't change it in the next few weeks.

Thanks for your input!!

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