I really don't understand this whole new phenomenom about REO listing agents (and now short sale & standard transaction agents) requiring a pre-approval from a "Direct Lender".  Maybe I'm just bitter because my client who was told by a "Direct Lender" that their financing was secure and all they had to do was find a property.  So I found them a property and then 20 days later the "Direct Lender" denies the client due to credit/employment/income factors (layered risk) that were present prior to the client being issued their pre-approval.  Maybe its because for the most part the loan reps I see at Direct Lenders at the banking institutions I go to (Bofa, Chase, Wells Fargo) are young, seemingly inexperienced and likely unlicensed.  Many loan reps working at…

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Did you know that the state of California is offering a $10,000 tax credit for homebuyers buying new construction?

Well time is running out on this great opportunity.

For more information go to CA Franchise Tax Board website at:



Update: as of July 3rd, 2009 the state has run out of funds for this program.  Sometimes when sales people are telling you that you'd have to "Act Now" its actually true....

1946 Views, 2 Comments

If all borrowers are required to sign IRS 4506-T forms that allow underwriter to verify income documentation, why do lenders require income documentation?  Shouldn't they just be able to take a signed 4506-T form get the IRS transcript and verify the income coming directly from the IRS?  Wouldn't the world be easier for loan originators and processors too if they could just order a 4506-T verification direct from the IRS covering a 2 year time period, get the transcript and divide by 24 to get the borrowers monthly income?


Just thinking out loud into the blogosphere...



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Here is an interesting application of the job loss protection gurauntees the auto industry introduced being applied to the Real Estate Market







Here is the website for the program the Real Estate Company is using as the insurance backstop for making this claim



C.A.R. launches Mortgage Protection Program (Thursday, April 2, 2009)

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A lot of Direct Lenders, Banks, Government Agencies and Non-profit organizations are inundating homeowners with messages that Third Party Loan Modification Companies are "scammers" and that borrowers should use extreme caution when doing business with these companies.  They tell homeowners that they will do their loan modification for free.no_free_lunch_124.  !FREE Loan Mod! That sounds great! I'll take it!

Unfortunately as the old saying goes, there is no free lunch...especially when it comes to loan modifications.

I'll give you an example of what I mean.  I just called Chase Bank to check status of a Loan Modification sent in on 5/18/09.  The first representative told me I needed to wait 6 weeks before I could confirm receipt of the package.  I knew that had to be…

36533 Views, 2 Comments


Want to feel frusturated and Raise your stress level? Click this link and read

Found this blog post on Active Rain.  Reading this post is the best way I think for the average layman to understand the frusturation with dealing with Lenders Loss Mitigation Departments.


This article did not surprise me though.  I've been waiting > 2 months for a Loss Mitigation Department to give me an updated approval.  I have a buyer willing to purchase property on terms approved by investor (based on Febuary 2009 BPO).  All I need is updated approval with new buyers name.

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Because of the declline in price's and the Sub Prime situation that accured ther are properties on the market, for $200000 and Under most are Short Sales or Bank owned, I CAN GET THEM FOR YOU, but you got to act fast because at these price's they will not last long. As you know many are out there looking at them, and with the all time low interst rate now offered, and the great loan pacages, now is the time to move. these properties will move fast, I wouldn't wait too long .........

Los Angeles County

City                     Bedrooms             Baths            Build Sq Ft              Prices

East Los Angeles (3)   2                        1                752-1501              $181000-$199000

Gardena (2)              …

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According to this Realtytrac report for first Quarter 2009, California was #3 in the country in terms of highest percentages of foreclosure filings at ~1.72%, Arizona just beat us out ~ 1.85% and Nevada was the undisputed champ at ~ 3.7%. Realtytrac defines a foreclosure filing as an NOD, NTS or a bank repossession.

The national average is ~.63% of all U.S. Properties (had some sort of foreclosure filing during that same time period.)

Defaults in California are up by record numbers according to this Dataquick article.  Up 80% from prior quarter (Q4 2008) and 19% from prior year quarter (Q1 2008). 

~70% of loans originated by ResMae 8/06=>11/06 have defaulted, Masters Financial and Ownit were both North of 60% too during that time period, WOW!!...

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As I understand it, the Home Valuation Code of Conduct (HVCC) was passed to erect a barrier between Loan originators having undue influence on appraisers.  Basically the Government is saying that Mortgage Brokers are twisting appraisers arm to inflate values so they enacted this law.  As I sit and try to understand this new law here are my initial thoughts:

  1. Lenders have whats called in house "Appraisal Review".  These departments basically analyze comparable sales to verify that appraisers aren't doing things like excluding better comparables.
  2. Why are some of the biggest lenders in the country allowed to run their own appraisal management companies?
  3. Why is there no oversight of Appraisal Management companies, no licensing required.
  4. There is a…

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