Comments on: FHA Update: The “It Girl” of Mortgage http://raincityguide.com/2008/10/18/fha-update-the-it-girl-of-mortgage/ Seattle's Leading Resource for Real Estate Information Thu, 18 Mar 2010 23:59:00 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Rhonda Porter http://raincityguide.com/2008/10/18/fha-update-the-it-girl-of-mortgage/#comment-330813 Rhonda Porter Mon, 29 Dec 2008 17:49:26 +0000 http://raincityguide.com/?p=2800#comment-330813 Russ, thanks for sharing that...I don't know why I find any of this surprising except to see it in print. This is digusting...there's just so much wrong about this. Mortgage originators who work for banks do not go through the same steps as mortgage brokers, yet, this WaMU supervisor...: <blockquote>“I’d lie if I said every piece of documentation was properly signed and dated,” said Mr. Parsons, speaking through wire-reinforced glass at a California prison near here, where he is serving 16 months <strong>for theft after his fourth arrest — all involving drugs</strong>. While Mr. Parsons, whose incarceration is not related to his work for WaMu, oversaw a team screening mortgage applications, he was snorting methamphetamine daily, he said. “In our world, it was tolerated,” said Sherri Zaback, who worked for Mr. Parsons and recalls seeing drug paraphernalia on his desk. “Everybody said, ‘He gets the job done.’</blockquote> This reminds me of the post I wrote about how<a href="http://www.raincityguide.com/2008/10/11/are-washington-consumers-safer-working-with-dfi-regulated-lenders/" rel="nofollow"> it's safer in Washington State to work with a lender who's regulated by DFI</a> than one who's not (some banks). Russ, thanks for sharing that…I don’t know why I find any of this surprising except to see it in print. This is digusting…there’s just so much wrong about this.

Mortgage originators who work for banks do not go through the same steps as mortgage brokers, yet, this WaMU supervisor…:

“I’d lie if I said every piece of documentation was properly signed and dated,” said Mr. Parsons, speaking through wire-reinforced glass at a California prison near here, where he is serving 16 months for theft after his fourth arrest — all involving drugs.

While Mr. Parsons, whose incarceration is not related to his work for WaMu, oversaw a team screening mortgage applications, he was snorting methamphetamine daily, he said.

“In our world, it was tolerated,” said Sherri Zaback, who worked for Mr. Parsons and recalls seeing drug paraphernalia on his desk. “Everybody said, ‘He gets the job done.’

This reminds me of the post I wrote about how it’s safer in Washington State to work with a lender who’s regulated by DFI than one who’s not (some banks).

]]> By: Russ http://raincityguide.com/2008/10/18/fha-update-the-it-girl-of-mortgage/#comment-330809 Russ Mon, 29 Dec 2008 17:34:00 +0000 http://raincityguide.com/?p=2800#comment-330809 Rhonda: Your comment about WAMU rang a bell. Did you see this article from the NY Times on Sunday about WAMU? Basically talks about them being the Option ARM king and their ridiculous underwriting. My favorite... mariachi singer. Taking photos to show he is a truly a singer to verify income on a stated deal. http://www.nytimes.com/2008/12/28/business/28wamu.html?_r=1&scp=2&sq=wamu&st=cse Rhonda:

Your comment about WAMU rang a bell. Did you see this article from the NY Times on Sunday about WAMU? Basically talks about them being the Option ARM king and their ridiculous underwriting. My favorite… mariachi singer. Taking photos to show he is a truly a singer to verify income on a stated deal.

http://www.nytimes.com/2008/12/28/business/28wamu.html?_r=1&scp=2&sq=wamu&st=cse

]]> By: Rhonda Porter http://raincityguide.com/2008/10/18/fha-update-the-it-girl-of-mortgage/#comment-330805 Rhonda Porter Mon, 29 Dec 2008 17:21:59 +0000 http://raincityguide.com/?p=2800#comment-330805 Angela, I'm sorry for not responding to your last comment--it's a very important one. I don't have answers to your questions and most of your comment seemed to be a well deserved rant/venting. I don't know if Fannie/Freddie are going to change their lending requirements to meet those of FHA. The only way that I know of a mortgage broker who is not HUD approved to originate FHA loans is to be sponsored (as you mentioned) and yes, there is a huge expense/bar of entry to originate FHA loans. $63,000 is just for starters...you'll have to do annual audits after that (that are also very expensive). This has been a HUD rule forever. I don't want to see mortgage brokers go away--we're a correspondent lender/mortgage broker. If mortgage brokers go away, we (correspondents) could be next. No one is really safe...neither are the mortgage bankers (we've seen more than a few banks go away, haven't we). I agree that it really seems like banks are making a power play. I've ranted a bit about that here and have written post about it at Mortgage Porter when the former CEO of WaMU said they were going to review all loans originated by brokers can contact our clients to make sure they understood what they were doing...I flipped out! Banks are the ones who created many of the products (WaMU is one of the grand-daddies of the option arm) and then they used mortgage brokers to push their products, the banks underwrote the loans and then, in this market, point their blaming gnarly fingers down at the mortgage broker. Many mortgage brokerages consists of small businesses...many family run. My family has been in the mortgage industry well over 30 years and our company is family run. I hope we all survive through this. Angela, I’m sorry for not responding to your last comment–it’s a very important one. I don’t have answers to your questions and most of your comment seemed to be a well deserved rant/venting.

I don’t know if Fannie/Freddie are going to change their lending requirements to meet those of FHA. The only way that I know of a mortgage broker who is not HUD approved to originate FHA loans is to be sponsored (as you mentioned) and yes, there is a huge expense/bar of entry to originate FHA loans. $63,000 is just for starters…you’ll have to do annual audits after that (that are also very expensive). This has been a HUD rule forever.

I don’t want to see mortgage brokers go away–we’re a correspondent lender/mortgage broker. If mortgage brokers go away, we (correspondents) could be next. No one is really safe…neither are the mortgage bankers (we’ve seen more than a few banks go away, haven’t we).

I agree that it really seems like banks are making a power play. I’ve ranted a bit about that here and have written post about it at Mortgage Porter when the former CEO of WaMU said they were going to review all loans originated by brokers can contact our clients to make sure they understood what they were doing…I flipped out! Banks are the ones who created many of the products (WaMU is one of the grand-daddies of the option arm) and then they used mortgage brokers to push their products, the banks underwrote the loans and then, in this market, point their blaming gnarly fingers down at the mortgage broker.

Many mortgage brokerages consists of small businesses…many family run. My family has been in the mortgage industry well over 30 years and our company is family run.

I hope we all survive through this.

]]> By: Angela Adams http://raincityguide.com/2008/10/18/fha-update-the-it-girl-of-mortgage/#comment-330800 Angela Adams Mon, 29 Dec 2008 16:38:12 +0000 http://raincityguide.com/?p=2800#comment-330800 Hi Rhonda, I am still looking for some insight to this question I have about the new administration coming in and Shaun Donovan in paticular. I understand that the Repulican lawmakers were the ones that made it difficult for small mortgage broker offices to originate FHA with the license and networth requirements. I know allot of you you out there feel that we small brokers should just go away. We are the ones that truly care and can help the people who sit accross our desk as they can see us and do not need to be marketed by FHA lead companies and net branches to modify their loan. Does anyone understand the impact this has had on small business and our industry. How about the bureaus that sell my clients info to a lead company? Now you are talking about preditory lending!! I know there are more inteligent people out there that understand this! Please I would really appreciate your comment on this. I have alot of respect for your knowledge in our industry. . . please advise. . Angela@themortgagehouseinc.net p.s. I sent a post to you on Nov. 3rd with no reply . . . . Hi Rhonda, I am still looking for some insight to this question I have about the new administration coming in and Shaun Donovan in paticular. I understand that the Repulican lawmakers were the ones that made it difficult for small mortgage broker offices to originate FHA with the license and networth requirements. I know allot of you you out there feel that we small brokers should just go away. We are the ones that truly care and can help the people who sit accross our desk as they can see us and do not need to be marketed by FHA lead companies and net branches to modify their loan. Does anyone understand the impact this has had on small business and our industry. How about the bureaus that sell my clients info to a lead company? Now you are talking about preditory lending!! I know there are more inteligent people out there that understand this! Please I would really appreciate your comment on this. I have alot of respect for your knowledge in our industry. . . please advise. . Angela@themortgagehouseinc.net
p.s. I sent a post to you on Nov. 3rd with no reply . . . .

]]> By: Angela Adams http://raincityguide.com/2008/10/18/fha-update-the-it-girl-of-mortgage/#comment-327870 Angela Adams Mon, 03 Nov 2008 16:25:43 +0000 http://raincityguide.com/?p=2800#comment-327870 Dear Rhonda, I have allot to say as I am a mortgage broker for 17 years and I have a very good reputation in my town (65,000) & (150,000 in the county) I have approx. 3-4 repeat clients and/or referral’s come in my door every week. People have faith in me and if you would like to take a look at how I price my loans. . . please . . most my files are at par!! I pay for my lock extensions for my client’s if I run over time. . I have never done an option pay arm !!!! The loans I did were good people with full time jobs w-2 full doc!!! and currently have demonstrated paying their bills on time. . maybe “may” have had a medical collection account that is now paid and their family is healthy now and they are on the right track!! Do you think it’s wrong to allow someone into a house that a few dings in the past?? (oh, , yeah that’s the new FHA)and now they are on the right track and pay excellent now?? Sorry to say that mortgage broker will always beat the banks interest rate and fees on a constant basis!! Now FHA says I’m insolvent because I don’t have a net worth of $63,000.00 !!! I have $225,000.00 equity in my home I also have a rental property for sale finally after the title company did a deed overlay and consequently had to wait for that to clear before putting it back on the market and almost loosing 8 months on market time. So, again, , let me ask you??? Does $63,000.00 make you ethical?? I suppose if you have that kind of money in the bank and your the broker/owner and have only 2 full time employees and one originator (again, you shouldn’t have to rip your client to show FHA the money in the bank you need to write another sub-prime loan. . LOL. . you know the new FHA!! Did you know that the net worth does nothing to cover the borrower?? and a Bond would !!! I know that all of you up there in Washington have a real good handle on the mortgage business. . but maybe you should read up on just what that net worth does or does not do!!! If you want us to get out of this mortgage mess maybe you guys should start asking the mortgage professional and not the people that invented the pick your pay loan. . . as this is the “sub-prime mess were in” guess what ? These pick you pay loans that these net branches with un-supervised loan officers (not brokers) OH BY THE WAY THEY ARE NOW THE NEW FHA SUB-PRIME!!! These Loan Officers were offered BIG MONEY!!! To put their client into one of these loans instead of a good 30 year loan that they were really better qualified for. . It’s all about greed. . you can’t teach ethics!!!. I suppose I could have ripped my clients and I would now have the net worth to help my clients into a good 30 year loan. . but I don’t because I am a small shop with myself, my husband and my processor. . . When is this going to change??? Don’t you guys see what your doing. . . ?? you are prohibiting local mortgage companies from helping their local community and consequently the housing market. . Again, , , what does $63,000.00 have to do with ethics??? The Big Banks Want The Broker’s Gone. . . This is evidence of why FHA is making us go net branch (so, now your not a broker anymore but a Loan Officer) and the manager of branch is in another state. . there is no requirement anymore within the branch to write these loans and more people are unsupervised and little or no experience writing any loan at all more than ever!!! Don’t you guys get it???? Now net branching is requiring the (was mortgage broker) now LO to give up 10% of all the loans you write and also (get this one) now charge the borrower another 450.00 per file. . . please research this as we are not helping the consumer. . . you need to understand this. . . Regards, Angela p.s. Is Fannie and Freddie going to require FHA lic to those loans now too??? Dear Rhonda, I have allot to say as I am a mortgage broker for 17 years and I have a very good reputation in my town (65,000) & (150,000 in the county) I have approx. 3-4 repeat clients and/or referral’s come in my door every week. People have faith in me and if you would like to take a look at how I price my loans. . . please . . most my files are at par!! I pay for my lock extensions for my client’s if I run over time. . I have never done an option pay arm !!!! The loans I did were good people with full time jobs w-2 full doc!!! and currently have demonstrated paying their bills on time. . maybe “may” have had a medical collection account that is now paid and their family is healthy now and they are on the right track!! Do you think it’s wrong to allow someone into a house that a few dings in the past?? (oh, , yeah that’s the new FHA)and now they are on the right track and pay excellent now?? Sorry to say that mortgage broker will always beat the banks interest rate and fees on a constant basis!!
Now FHA says I’m insolvent because I don’t have a net worth of $63,000.00 !!! I have $225,000.00 equity in my home I also have a rental property for sale finally after the title company did a deed overlay and consequently had to wait for that to clear before putting it back on the market and almost loosing 8 months on market time. So, again, , let me ask you??? Does $63,000.00 make you ethical?? I suppose if you have that kind of money in the bank and your the broker/owner and have only 2 full time employees and one originator (again, you shouldn’t have to rip your client to show FHA the money in the bank you need to write another sub-prime loan. . LOL. . you know the new FHA!! Did you know that the net worth does nothing to cover the borrower?? and a Bond would !!! I know that all of you up there in Washington have a real good handle on the mortgage business. . but maybe you should read up on just what that net worth does or does not do!!! If you want us to get out of this mortgage mess maybe you guys should start asking the mortgage professional and not the people that invented the pick your pay loan. . . as this is the “sub-prime mess were in” guess what ? These pick you pay loans that these net branches with un-supervised loan officers (not brokers) OH BY THE WAY THEY ARE NOW THE NEW FHA SUB-PRIME!!! These Loan Officers were offered BIG MONEY!!! To put their client into one of these loans instead of a good 30 year loan that they were really better qualified for. . It’s all about greed. . you can’t teach ethics!!!. I suppose I could have ripped my clients and I would now have the net worth to help my clients into a good 30 year loan. . but I don’t because I am a small shop with myself, my husband and my processor. . . When is this going to change??? Don’t you guys see what your doing. . . ?? you are prohibiting local mortgage companies from helping their local community and consequently the housing market. . Again, , , what does $63,000.00 have to do with ethics??? The Big Banks Want The Broker’s Gone. . . This is evidence of why FHA is making us go net branch (so, now your not a broker anymore but a Loan Officer) and the manager of branch is in another state. . there is no requirement anymore within the branch to write these loans and more people are unsupervised and little or no experience writing any loan at all more than ever!!! Don’t you guys get it???? Now net branching is requiring the (was mortgage broker) now LO to give up 10% of all the loans you write and also (get this one) now charge the borrower another 450.00 per file. . . please research this as we are not helping the consumer. . . you need to understand this. . . Regards, Angela
p.s. Is Fannie and Freddie going to require FHA lic to those loans now too???

]]> By: Rhonda Porter http://raincityguide.com/2008/10/18/fha-update-the-it-girl-of-mortgage/#comment-327865 Rhonda Porter Mon, 03 Nov 2008 04:45:38 +0000 http://raincityguide.com/?p=2800#comment-327865 Thanks, FHA Book! You have to dance quickly to keep up with today's changes. :) My goal is to have the Mortgage Pages at RCG reflecting current guidelines...which I'm working on in my spare time. Thanks, FHA Book! You have to dance quickly to keep up with today’s changes. :) My goal is to have the Mortgage Pages at RCG reflecting current guidelines…which I’m working on in my spare time.

]]> By: FHA Book http://raincityguide.com/2008/10/18/fha-update-the-it-girl-of-mortgage/#comment-327858 FHA Book Mon, 03 Nov 2008 01:01:11 +0000 http://raincityguide.com/?p=2800#comment-327858 Great post, Rhonda! I've recommended it to my readers! Great post, Rhonda! I’ve recommended it to my readers!

]]> By: FHA Book » Blog Archive » Ever Changing FHA http://raincityguide.com/2008/10/18/fha-update-the-it-girl-of-mortgage/#comment-327857 FHA Book » Blog Archive » Ever Changing FHA Mon, 03 Nov 2008 00:55:26 +0000 http://raincityguide.com/?p=2800#comment-327857 [...] are different every week. On the Seattle Real Estate blog, Rain City Guide, Rhonda Porter offers a great rundown of all the current changes to FHA and things that will be changing in [...] [...] are different every week. On the Seattle Real Estate blog, Rain City Guide, Rhonda Porter offers a great rundown of all the current changes to FHA and things that will be changing in [...]

]]> By: Options for Homeowners Facing Foreclosure | Rain City Guide http://raincityguide.com/2008/10/18/fha-update-the-it-girl-of-mortgage/#comment-327345 Options for Homeowners Facing Foreclosure | Rain City Guide Mon, 27 Oct 2008 05:56:31 +0000 http://raincityguide.com/?p=2800#comment-327345 [...] Income and assets must be fully documented. Find a licensed, local mortgage lender with FHA-approval to see if you might qualify for an FHA loan.  For people who made the conscious decision to [...] [...] Income and assets must be fully documented. Find a licensed, local mortgage lender with FHA-approval to see if you might qualify for an FHA loan.  For people who made the conscious decision to [...]

]]> By: ARDELL http://raincityguide.com/2008/10/18/fha-update-the-it-girl-of-mortgage/#comment-327045 ARDELL Wed, 22 Oct 2008 04:43:47 +0000 http://raincityguide.com/?p=2800#comment-327045 But no one knows if the lender is going to forgive the difference until they are asked to approve the payoff. They should be asked to approve the payoff AND forgive the debt, not just approve the payoff. Then that final agreement should be reviewed by an attorney before the seller signs it. Seeing an attorney only at the beginning is not enough. But no one knows if the lender is going to forgive the difference until they are asked to approve the payoff. They should be asked to approve the payoff AND forgive the debt, not just approve the payoff. Then that final agreement should be reviewed by an attorney before the seller signs it.

Seeing an attorney only at the beginning is not enough.

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