I think everyone from this industry needs to do what I did this am, I sent a solution email to Frank Barney, Barney Frank whatever, our 2 senators in Texas and NAMB to fight.. I suggested the following and I think Realtors should get on this 2. If I turn down one more 780 fico Self Employed borrower because their net income is not enough I am going to lose it....they are putting 20% down too... ridiculous we have gone from 1 side to the stupid side. see below what I sent
22 years experience in the Lending Industry here and if you want to help the economy get started here are 2 ways:
1 - Get rid of houses for sale - Enable the bank statement program with a sizeable down...Self Employed borrowers with 20% down and high credit scores are not allowed to borrow right now unless their net profit shows enough money monthly..you know they write off alot..this is a safe bet and this will get rid of some inventory.
2. Refinancing people of of ARMS - Fannie now has a 660 fico for cashout loans well guess what alot of Texas refinances are primarily texas cashouts because subprimers did adjustable rate loans and now their payments are exploding and we cannot refi them....COME BACK WITH THE MORTGAGE ONLY PROGRAM...if you paid your mortgage perfect in the last 12 mths and can show some income via bk stmnts, etc. we will refi you, 80% who cares what the score is if they pay their mortgage payments on time....
3. Open up FHA to Brokers without the big money expense to join- 70% of all volume is done by Brokers, the schiesters are gone let us help these people... Congress is contributing to the foreclosures from swinging the pendulum too far...we need common sense lending.. to help the people who have made their payments and have good jobs and ability to pay, no lending programs should be off limits for anyone right (shd be open to all lenders) now everything should be open so that the customer will get the best deal, if you want to help then help the right way.