Comments on: Is Countrywide the Next to Crash and Burn? http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/ Home loans made easy Fri, 21 Nov 2008 21:14:25 +0000 http://wordpress.org/?v=2.3 By: ColumbusRealEstateVoice- Real Estate Reality » Blog Archive » August Mortgage Loan Panic in Full Bloom http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12620 ColumbusRealEstateVoice- Real Estate Reality » Blog Archive » August Mortgage Loan Panic in Full Bloom Fri, 17 Aug 2007 20:12:27 +0000 http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12620 [...] Nervous watchers include international banks like BNP Paribas, who have suspended investor withdrawals in response to the sub-prime market implosion. This and other actions have led to an evaporation of cash flow, which ALL businesses need to survive (it’s like us not having air to breath, folks). Countrywide and Washington Mutual have both stated they are having unprecedented disruptions from their sources for mortgages. [...] […] Nervous watchers include international banks like BNP Paribas, who have suspended investor withdrawals in response to the sub-prime market implosion. This and other actions have led to an evaporation of cash flow, which ALL businesses need to survive (it’s like us not having air to breath, folks). Countrywide and Washington Mutual have both stated they are having unprecedented disruptions from their sources for mortgages. […]

]]> By: marc brinitzer http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12618 marc brinitzer Fri, 17 Aug 2007 15:54:18 +0000 http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12618 It could be CP that your broker forgot to lock that one. Brokers will sometimes play the market, but in the present environment, that is highly unlikely. What does your broker say about the lock? We get a written confirmation of every lock, so it should be easy to prove. If that fails, you may need to find another lender for the 2nd. Is this full doc or some form of "stated income" loan? It could be CP that your broker forgot to lock that one. Brokers will sometimes play the market, but in the present environment, that is highly unlikely. What does your broker say about the lock? We get a written confirmation of every lock, so it should be easy to prove.

If that fails, you may need to find another lender for the 2nd. Is this full doc or some form of “stated income” loan?

]]> By: CP http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12617 CP Fri, 17 Aug 2007 13:22:48 +0000 http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12617 I am working with a mortgage broker and we were scheduled to close on 8/20. I have an 80/15 loan with good credit and my broker is telling me that countrywide is refusing to fund my 2nd mortgage. I've been speaking directly with Countrywide and my understanding is that they are honoring all loans that have been locked but are not funding any NEW loans. Based on this information I believe that the issue isn't that c-wide won't honor the lock, I believe it's that my broker NEVER locked my loan. Any suggestions on what I can do in this situation? I am working with a mortgage broker and we were scheduled to close on 8/20. I have an 80/15 loan with good credit and my broker is telling me that countrywide is refusing to fund my 2nd mortgage. I’ve been speaking directly with Countrywide and my understanding is that they are honoring all loans that have been locked but are not funding any NEW loans. Based on this information I believe that the issue isn’t that c-wide won’t honor the lock, I believe it’s that my broker NEVER locked my loan. Any suggestions on what I can do in this situation?

]]> By: Marc Brinitzer http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12600 Marc Brinitzer Thu, 16 Aug 2007 00:13:20 +0000 http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12600 Jeanette, you make a couple of points that I hope will resonate with buyers, builders and agents. First, even the big "reputable" banks are frequently pulling loans without warning. American Home Mortgage did this with $800 million worth of approved loans. Second, a reputable mortgage broker is the only sensible choice today. Only a broker has the ability to shift gears and quickly move the file to another lender when one pulls up the tent stakes and leaves in the night. Jeanette, you make a couple of points that I hope will resonate with buyers, builders and agents. First, even the big “reputable” banks are frequently pulling loans without warning. American Home Mortgage did this with $800 million worth of approved loans.

Second, a reputable mortgage broker is the only sensible choice today. Only a broker has the ability to shift gears and quickly move the file to another lender when one pulls up the tent stakes and leaves in the night.

]]> By: jeanette http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12599 jeanette Thu, 16 Aug 2007 00:06:57 +0000 http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12599 FYI - I have a loan E-Approved at C-wide, locked and all conditions went in on Aug 9th. My rep Mark called me THIS morning to tell me... "sorry, we stopped doing that loan on August 8th." He said my file would have had to have been UNDERWRITTEN before the 8th - and he had no advance notice to try and help me out. I currently have a past client who is purchasing new construction. The builder offers $20k incentive to use their in-house lender... C-wide. I'm using this latest news as a last ditch effort to get MY clients back, without them loosing the $20k by showing them the published C-wide article. My point to them - C-wide COULD be out of business before construction is complete in 30 - 45 days. If we do the loan, we can change lenders quickly IF a problem occurs. I don't know if it will work or not - but I can't beat the rates C-wide is quoting - I can MATCH, but the builder wants me to get into a GFE bidding war with C-wide. FYI - I have a loan E-Approved at C-wide, locked and all conditions went in on Aug 9th.

My rep Mark called me THIS morning to tell me… “sorry, we stopped doing that loan on August 8th.” He said my file would have had to have been UNDERWRITTEN before the 8th - and he had no advance notice to try and help me out.

I currently have a past client who is purchasing new construction. The builder offers $20k incentive to use their in-house lender… C-wide. I’m using this latest news as a last ditch effort to get MY clients back, without them loosing the $20k by showing them the published C-wide article. My point to them - C-wide COULD be out of business before construction is complete in 30 - 45 days. If we do the loan, we can change lenders quickly IF a problem occurs. I don’t know if it will work or not - but I can’t beat the rates C-wide is quoting - I can MATCH, but the builder wants me to get into a GFE bidding war with C-wide.

]]> By: guy http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12598 guy Wed, 15 Aug 2007 23:33:46 +0000 http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12598 Being a mortgage broker at this time is definitely a benefit for us. I think one big point to remember is that you must lock in your loans wherever you are sending them. In that way, if the program changes or goes away, hopefully your lender will honor the lock and fund the loan up until the lock expiration date. I know some lenders haven’t been honoring their locks, but with our preferred lenders I think we have a much better chance of this and so far it appears they have come through for us on this. Just don’t ask for any extensions because you won’t get them. J This market turmoil just gives us that much more opportunity to shine. We just have to keep a positive spin on it. Easier said than done sometimes, though, I know. Being a mortgage broker at this time is definitely a benefit for us.

I think one big point to remember is that you must lock in your loans wherever you are sending them. In that way, if the program changes or goes away, hopefully your lender will honor the lock and fund the loan up until the lock expiration date. I know some lenders haven’t been honoring their locks, but with our preferred lenders I think we have a much better chance of this and so far it appears they have come through for us on this. Just don’t ask for any extensions because you won’t get them. J

This market turmoil just gives us that much more opportunity to shine. We just have to keep a positive spin on it. Easier said than done sometimes, though, I know.

]]> By: Ari http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12596 Ari Wed, 15 Aug 2007 22:23:44 +0000 http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12596 I think there is a difference here in Marc’s email. The CountryWide situation is factual and we need to be aware of potential funding halts when deciding where to take our loans! I think there is a difference here in Marc’s email. The CountryWide situation is factual and we need to be aware of potential funding halts when deciding where to take our loans!

]]> By: Marc Brinitzer http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12595 Marc Brinitzer Wed, 15 Aug 2007 22:21:55 +0000 http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12595 Thanks Renee, There is a silver lining on the cloud, and you put your finger on it. It's not my goal to be depressing, but rather to help people avoid painful mistakes by being aware of their surroundings. Giovanni, this isn't gloom and doom, it's reality. Steer your clients toward safety and away from risk. That's what you get paid for. And why not take this opportunity to point out to clients that in addition to not having to disclose their fees, a mortgage bank may not be there with money at the close. Guy, yes I recall CW being very aggressive with the pay option arms. The 5 yr fixed POA is the worst loan ever devised. See my article under "Neg Am Loans" in the Categories Marc Thanks Renee,

There is a silver lining on the cloud, and you put your finger on it. It’s not my goal to be depressing, but rather to help people avoid painful mistakes by being aware of their surroundings.

Giovanni, this isn’t gloom and doom, it’s reality. Steer your clients toward safety and away from risk. That’s what you get paid for. And why not take this opportunity to point out to clients that in addition to not having to disclose their fees, a mortgage bank may not be there with money at the close.

Guy, yes I recall CW being very aggressive with the pay option arms. The 5 yr fixed POA is the worst loan ever devised. See my article under “Neg Am Loans” in the Categories

Marc

]]> By: Renee http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12594 Renee Wed, 15 Aug 2007 22:17:39 +0000 http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12594 Wow!, your website has some depressing stuff on it. On a lighter note since the values are going down some of the people priced out of the market previously may be able to afford to buy now. Wow!, your website has some depressing stuff on it. On a lighter note since the values are going down some of the people priced out of the market previously may be able to afford to buy now.

]]> By: Giovanni http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12593 Giovanni Wed, 15 Aug 2007 22:17:08 +0000 http://www.lendingclarity.com/2007/08/15/is-countrywide-the-next-to-crash-and-burn/#comment-12593 Do we need to continue to continue to send doom and gloom speculations? Lets all pack our bags and call it a day. No? Or, lets stay focused, stay on top of product and lender changes so we are the ones who can serve the clients who are still out there. Do we need to continue to continue to send doom and gloom speculations?

Lets all pack our bags and call it a day. No?

Or, lets stay focused, stay on top of product and lender changes so we are the ones who can serve the clients who are still out there.

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