MortgagesUndressed

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Some spammer is hitting us so hard I am doing a test.

The Blog Ghost Writer

There are so many fees attached to a loan. Real Estate Professionals long ago started calling them junk fees. They do represent a break down of costs.

Photo from ImageAfter:

However, Countrywide an idustry leader has notified us they are forcing simplicity on the marketplace. From their memo:

New Lender Fee Structure: Effective April 16, 2007 Countrywide, America’s Wholesale Lender(R) is implementing a new fee structure that we charge in connection with a closed-end, first lien loan. These changes will simplify the lender fees to a single Lender Fee. Fees formerly labeled Loan Processing Fee, Doc Prep Fee — Lender, and Underwriting Fee, will no longer be itemized or available as options in the system.

Not only does this simplify things, it confirms to the many cynics that read this that all the fees weren’t charged by the mortgage broker.

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Spam, lengthy spam such as in the photo below has taken over all other forms of spam we receive. We deleted 477 spam from our sites today, 76% were like this.

Akismet blocks this spam about 10 times a day. Who is this loser?

The question should be more focused on the loan officer. That is where the danger lies. Big banks are usually well managed from a fraud control point of view. However, their weekness lies in pricing and flexibility.

Lending rates are competitive. No one lender leads the rate game every day. When I worked for Mellon Bank In Bellevue Washington I found them in a place where they were rarely competitive. I had to leave as my ability to be competitive was paramount in importance.

Nitche programs are crucial for some, If you need a no income qualifying type loan for example, you better be working with a broker.

Our company is approved with over 30 mortgage lenders for these reasons. We added 3 this week and will continue to add as we find nitches we can fill.

If you don’t have 660 or so credit scores you better get serious about getting out of your home or your loan. They will continue to adjust higher. Sub prime adjustables may go as high as 12% if you don’t get out of them. This isn’t a time to be proud. If you can’t get out of your home or your loan and you can’t make the higher payment, have someone in your household get an additonal job.

The real estate industry is the single most important segment of our economy. There are different opinions on the size of the effect of the sub prime implosion on the market. The bright side, the fed will have no choice but to reduce rates. So hang in there with hope, a large slide it may not be, but if so, watch for rates to drop.