Countrywide's new refi or modify program

papaul1621 · 10-24-2007, 01:41 AM

Countrywide announced a refinance or modify program for borrowers who's loans will adjust within the next 15 months. I thought that was great news because I think the real estate market is hurting from all of those adjustable rates mortgages that happened this past year which put homeowners in a position where they couldn't afford their home anymore. Then led to a large inventory of homes for sale. (Especially short sales) What do you guys think?

Ryan Ward · 10-24-2007, 06:24 AM

First, I think homeowners put themselves in a position to not be able to afford to pay for their homes. Many of them used stated income 100% financing loans and lied about their income.

Fundamentally, I believe it is very important to place the blame where it actually belongs.

So what to do about it? Well, that's another story, and, for lenders, it's mostly about risk management. How much risk they are willing to take and whether they can package and resell loans is the way the game works so if they can find a way to get these people out of their current loans more power to them. Right now, we are simply in a period where there is a large group of buyers who have been removed from the market.

If you want to buy a home, you need money now. In the past few years, you did not.

Can anyone honestly say that a practice of giving a $200,000 loan to someone with no risk or initial investment from the borrower was a good idea? Buyers thought they deserved it. It's part of this "give it to me now because I deserve it society" crap that we live in today. The reality is that this slowdown (in my opinion) will actually be very good long term.

metaylor9 · 10-24-2007, 06:36 AM

Quote:

Originally Posted by Ryan Ward

The reality is that this slowdown (in my opinion) will actually be very good long term.

I agree with that Ryan, the pace of the real estate market over the past few was simply unsustainable. We need this correction to get things back to a more normal, healthy pace.

I think the blame for this mortgage mess is abundant enough to be spread around. Buyer are at fault of course, mortgage brokers and banks themselves are also to blame for this disaster.

Ryan Ward · 10-24-2007, 06:45 AM

Youre right. There is enough blame to go around. I still wonder why we have no licensing for LO's. Anyone can originate a loan (as long as you can fog a mirror). Certainly, some of these folks were doing the lying on behalf of unwitting buyers, but, I still think if you want to buy a home with a loan, the ultimate burden falls on the homeowner. After all, they don't take the home back from the lender or loan officer when you don't pay your mortgage.

metaylor9 · 10-24-2007, 07:02 AM

Quote:

Originally Posted by Ryan Ward

I still wonder why we have no licensing for LO's. Anyone can originate a loan (as long as you can fog a mirror).

Agree 100% on this. I know that here all you have to do attend a 24 hour course and you are "qualified" to be an LO and advise people on one of the most important decisions of their life. Not good enough for me. There could be help on the way, Congress just introduced a bill that would require all LO's to get licensed and the NAMB is behind it.

Morristown · 10-24-2007, 07:06 AM

I agree with you Ryan. I have several former clients who have called me over the past year or so wondering what I can do to help them. They took loans that they could not afford in the long run. (Some will try to put some of the blame for that on me, but I had nothing to do with what they got pre-approved for, or what sort of loan they took.) All of these people had, lets call it Sketchy credit and very little money when they made their purchase and all got 2/28 loans, knowing full well that after 2 years that loan could adjust and in most cases the first adjustment would not have limits on it.

In every case where one of these people called me they had not had their first adjustment, but had been talking to a mortgage broker about refinancing, and found that doing so was not possible as their credit scores were lower now than when they took their mortgages. (This all means that these people have been acting like children over the last 2 years and not paying their bills on time.)

I place 90% of the blame on the home owner who took the loan in the first place, and 10% on the Mortgage Brokers who pushed the 2/28 loans on anyone with poor credit.

20something RE Guy · 10-24-2007, 12:13 PM

I agree wholeheartedly with Ryan's post. All too many buyers have the additude of "I deserve a BIG house" when their budget will only allow for a moderate house. While many buyers did this knowingly, some buyers however didn't do it, having a modify program is a good thing, but in the long run, this mortgage "Crisis" is the best thing for the market.

Maybe we can get in with some good requirements for LOs and Realtors while we're at it , maybe require a BA for both? It'd be great to see higher standards for our PROFESSIONS.

diamndloanfirm · #**8 Loan Offer** 10-24-2007, 12:21 PM

Bless You.

I am a private lender. I give out loans to all categories people firms, companies, schools, churches, industries etc. I give out my loans at very cheap and moderate rates. I am a certified, registered and legit lender. what I do is that I tender my certificate to any of my client before any transaction takes place. I do this due to the inevitable fact that there are many fake people out there claiming to be genuine lenders and yet they are not and hence these people help to make real transaction difficult for us to the extent that you can not even differentiate the real lender from the fake.

Norcal Jim · 10-24-2007, 01:24 PM

I will agree that it is the homeowner's responsibility. However, it is nice to see a lender take a proactive approach to the problem that will ultimately help us all. More foreclosures will just make the problem worse.

Jason Painter · 10-24-2007, 02:35 PM

Diamond Loan Firm...

OH BOY...I hear that train a commin'

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Real Estate Forums

For our members

Main Sections

IDX Coverage Areas

Spiders Welcome