Hello Everyone:
I just need to vent for a moment.
Unless you live under a rock, you have probably heard about the shutdown of Indymac, the Fannie and Freddie problems, and the predatory lenders, etc. etc. etc. The media has focused all of their attention on instilling fear in the public and making it appear that lenders and loan officers are the reason that the mortgage industry has collapsed. A lot of people are reading this information and listening to it on the news and they are calling me with all kinds of questions and pointing the finger at the mortgage loan industry.
First of all, ARMS, stated income loans and "predatory lending" are not the primary reason for the "downfall" of the mortgage industry. ARMS were at most time the only way you could get a "less than perfect" credit history borrower into a home. We as loan officers put them in these types of loans so that they could get in and then refinance in a year or so. Unfortunately, when you called these people back to try to refinance them out of their ARM's they hadn't been paying their mortgage on time so there was no way to get them refinanced. You have individuals who will buy new cars and make car payments, and charge up their credit cards and pay all of those bills on time, but not make a mortgage payment on time. How can that be blames on the loan officer. We just close loans, not make the payments. The vast majority of people who did stated income loans were "wanna be" investors. They watched these infomercials on television and jumped in and purchased these houses in areas that were supposedly "up and coming" with no plans of how to maintain them once they had them. A lot of "investors" would purchase the properties though hard money lenders and spend all the construction cash instead of using it to repair the properties, and let them sit. ARRRRRGHHHHH AND I am so sick of people mis-using the term predatory lender. Do any of these people actually know what the term means? Do they know that each state has a set percentage of sales price that can legally be charged, and most lenders have check and balances in place that will not allow a loan that goes beyond these fees to close.
Where are the media reports that tell how much those of us who make our living in this industry are suffering? They could come to my house, I would give them something to report about.
I do empathize with those people who are in a hard place due to circumstances beyond their control, HOWEVER, I am sick and tired of some of the craziness that is being reported by the media everyday...
Thanks for letting me vent... Have a wonderful day..
Sharon Richardson
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