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Is it a perfect loan? Sorry we don't approve perfect loans..

Reblogger Jon Quist
Real Estate Agent with REALTY EXECUTIVES ARIZONA TERRITORY DRE# SA113961000

Doug Jones' post needs to be put up as much as possible. The more people see this, the more the lesson may reach someone who can actually start to fix this mess. The banks, at the top, are run by manipulative, devious, white collar criminals, who are personally raking in millions for themselves, while sitting on money that could help the economy.

Open your windows and scream " I'm mad as hell and I'm not going to take this any more".

Where have I heard that before? I wonder?

Original content by Doug Jones
A long time ago I worked for a lender that really did what I am going to tell you. The lender had a loan from a mortgage broker and did not want to do the loan..so the questions would go...

Does the house have a pool? Yes...Sorry we only do loans on homes that do not have a pool. or No...Sorry we only do loans on homes with a pool...

Is the house a single story home? No...Sorry we only lend on single story homes ..or Yes...Sorry we only lend on two story homes...

I have a loan now with a credit score of 800+, salary jobs and the Debt Ratio is lower than 30% (lower than 42% is acceptable) and the client is putting down 20%.....but the banks don't want to do the loan because of their capricious reasons. Here is something that I just posted on Facebook.......all it means is that the banks have the money but are finding ways to hold onto the money.

Economics: Banks have required reserves and can only lend against excess reserves. As money moves thru the system, credit money is created and only credit money creates demand. March 2008 every new dollar in reserves resulted in $177.00 in credit money. At present the multiplier effect is only $3.45. Late 2008 the Fed flooded banks with reserves in hopes that they would result in loans. Money doesn't stimulate until someone can spend it. We can't spend it because we can't get our hands on it !

Recently I have told people that there are three little boxes and the loan situation has to fit perfectly in those three little boxes for the loan to be approved.  Now, it really does not matter. You can fit the loan perfectly in the boxes and the bank can still say "no". I guess the bank would say ..... Do you have a perfect loan? Answer yes and they say...Sorry we are uncomfortable with perfect loans.

Doug Jones
Mortgage Magic NMLS 286668

Comments(5)

Sarasota & Manatee Counties FL
SaraMana Properties - QuickFreeMLS.com - Bradenton, FL
QuickFreeMLS.com - Listings In Paradise

I just had to laugh out loud at the title of your blog post!

Aug 24, 2011 11:30 AM
Monica Snipes
BML Properties Realty - Washington, DC
Austin, Helping Buyers & Sellers in Metro Washington, DC

Great post! This sums up a lot of our frustration!

Aug 24, 2011 11:33 AM
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Jon -- Thanks for bringing this to our attention.

Aug 24, 2011 11:43 AM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Ha ha, Jon. I agree, sometimes even the "perfect" buyer sometimes can't get a loan-or at least not a loan he/she could live with.

Aug 24, 2011 06:37 PM
Jon Quist
REALTY EXECUTIVES ARIZONA TERRITORY - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

Remember, I don't get the credit for the headline or the copy, just the fact I thought to re blog the post!

Aug 26, 2011 11:27 AM