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Mortgage Brokers get blamed...but WAMU did it...

By Chuck Christensen

Mortgage and Lending with Your Financial Coach

November 06, 2007 09:25 AM

It was all over the news...inflated prices...bad loans...uncontroled loan officers lying about incomes and assets. Funny thing is that WAMU is being blamed for the mortgage fallout and most of their Loan Officers just went to other banks. The Mortgage Brokers are now being audited, scrutinised and now having licensed fees raised, new ones incorporated, and finger printed like criminals. Place the blame where it belongs. The banks are the ones that made these terible loans available and then sold them off to investers as quickly as possible and took the money and ran. Pull out your Seattle times or other papers from last week and read the headlines. Realtors, is your favorite LO with a bank? Did you do your client a favor by getting them into a home they couldn't afford anyway? How are you sleeping at night?

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Lewis Poretz

Apex Home Loans - Annapolis, MD

Business Development Manager

Chuck -

I remember reading this response somewhere on AR. It hit home and i can not forget it.

The realtor's pressured the mortgage brokers who were pressured by their clients who then pressured the underwriters to approve the loans. EVERYONE was at fault.......

Nov 06, 2007 10:11 AM

Eric Bouler

Gardner Realtors, Licensed in La. - New Orleans, LA

Listening to your Needs

If the big banks and large mortgage companies did not want to put the screws to the buyers and the final investors this would not have happen. Remember these are not great buyers who have a history of not performing. What did you expect!!!!!!! Follow the bonuses and the money.

Nov 06, 2007 10:27 AM

Shelter Insurance® Andy Jones

Shelter Insurance® - Franklin, TN

Chuck,

I don't understand why there is no personal accountability? I can't afford the home that I quilify for without changing my life style. And the idea that everyone is a victim of the BIG BANKs is just wrong.

my $.02

Andy

Feb 07, 2008 01:14 PM

Chuck Christensen

Your Financial Coach - Bellingham, WA

Lewis good point. But the appraisers are the ones that predict the value of the property...as it is now...not a guess of what it would be in the future. Alot of appraisers were inspired to push the limits. The investigation is about WAMU paying appraisers that would boost the value and appraisers that would not, never got anothe apprasal request from them.

Eric and Andy Large mortgage Companies do not usually loan money. They are a middle man for wholeselling banks and lending institutions. Lenders and banks made these programs available for almost anyone to qualify. Lenders were doing stated Income loans and people were just stating their income to unrealistically qualify. Alot of banks did not even ask their clients what they made...You probable heard the commercial about "we don't need to bring in any papers" to get a refinance....that's because they raised the interest rate for their benefit, and didn't tell the client to get off their lazy butt, bring in verifications and save about 2% annually. German banks and other European banks jumped to buy these notes faster than the loans closed....Greed took over....And their should be personal accountability. Alot of people did lie about their income and assets....like a kid in a candy store..."but they gave it to me and I just couldn't help myself". The BIG BANKS did it to themselves....got greedy and did loans that were too risky. But sold off most of them before they got caught....In less than 6 months last year...over 130 lenders and small banks went under. Countrywide is in serious trouble and hoping the buyout will be approved. Loan Officers at banks are w2 employees, so you can not sue them....good luck going after the big bank for restitution. He who has the gold makes the rules...and lives or dies by them.

Feb 08, 2008 05:08 AM

Isn't this too funny, I made this comment last month, and today Countrywide is being investigated by the FBI for Securities fraud....

Mar 10, 2008 10:47 AM

Richard Sweum

1st Security Bank - Everett, WA

This was a hose job, flat out. NAMB has no clout whatsoever.

Mar 10, 2008 12:02 PM

RICH I really hope you don't think that NAMB has anything to do with banks. Washington Mutual stock went below $10 and is expected to go lower.

Banks are regulated by the banking industry...the SEC gets involved in the Securities Investment side. Mortgage Brokers have nothing to do with what the banks do except for asking them to wholesale loans, like any other Financial or investment firm, like Bear Searns, or JP Morgan

Mar 17, 2008 07:13 PM

Mortgage Brokers get blamed...but WAMU did it...

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