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Monday November 23, 2009 1:19 AM ET
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Lending Reform: We Need More Clarity, Not Limits
James B. Stewart: Inform consumers, don't deprive them of choices.
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Posted 9:59 AM EST June 25, 2009
gkahn
1 Comments
As a mortgage banker for20 years, I have been shocked and dismayed about how broken the banking system is now. I ran into a similar problem with some clients, thinking (foolishly) that I could get their refinance done in 45 days. When it took longer I ended up eating the extra cost, so as not to break my promise to my clients. Now I refuse to lock rates for my clients until AFTER I have a complete package and feel confident the banks will deliver. This has saved me headaches, but clients are unhappy that I won't lock their rate on the first phone call.
Posted 4:52 PM EST June 24, 2009
Posted by: Limke
I have just been confronted with this problem and it cost me $60.00 a month because our mortgage rate was lost because of delays with having a second appraisal. I'm steaming mad. In an economy like this 60 dollars is a lot. My rate went from 4.82 to 5.25. I don't understand why the mortgage industry was caught off guard with this new requirement. What happen here? The stupid thing is the first appraisal was 2K lower than the second one. Someone owes me 21K. Also my HR person at work was asked to provide employment status 4 times. We started this process on April 29th and we are still not closed. The wasted time and money. Who is starting the law suit? count me in.Posted 3:05 PM EST June 24, 2009
The necessary information that any borrower needs could easily be on one simple page, but too many lawyers have been involved to ever make it simple.
When I used to do sale/loan closings for the homes we sold (before all this weird loan stuff existed) I used to tell everyone the same thing. I'll wait for you to read the documents, but I'll make it real simple for you. If you make your payments there is nothing in these documents that can hurt you. If you don't make your payments, there is nothing in these documents that will help you. No one ever bothered to read the documents after hearing those statements beyond looking at the interest rate and the payment amount.
When I used to do sale/loan closings for the homes we sold (before all this weird loan stuff existed) I used to tell everyone the same thing. I'll wait for you to read the documents, but I'll make it real simple for you. If you make your payments there is nothing in these documents that can hurt you. If you don't make your payments, there is nothing in these documents that will help you. No one ever bothered to read the documents after hearing those statements beyond looking at the interest rate and the payment amount.
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