I just finished watching the Wednesday episode of "Late Night with Andy Bumatai" and I was compelled to comment on some of the advice given by Ms. Tanisha Souza, which bordered on fear-mongering.
I usually don't post on HT regarding work-related issues (mortgage broker) as I usually come here for escape and release. But Ms. Souza's irresponsible and misleading comments about the mortgage market cannot go unanswered.
Lie #1: There is no more subprime.
Fact: There are a surprising number of subprime lenders in business and still funding loans in Hawaii despite a culling of the herd. In fact, there are more subprime lenders available to us than the number of years since Ms. Souza left Goodsill Anderson Quinn & Stifel LLP to take the helm of Tardus Financial Services of Honolulu.
Lie #2: People with a credit score < 680 "can't get a home."
Fact: I'm assuming she was referring to securing financing to purchase a home, as she made a broad generalization. But not only can people with credit < 680 secure financing to buy a home, they can qualify for multi-million dollar loans to purchase large commercial and residential projects ... if they have enough verifiable income.
Lie #3: People with a 700 credit score or better can put 10% or 15% down (on a purchase) where before they could put down 5% of 0%. Today it's just not the case that you can get 100% financing.
Fact: There are still many mortgage programs which offer up to 100% financing for purchases and rate-and-term refinances. Short list: Freddie Mac 100, Home Possible 100, Fannie Mae Flex 100, My Community, VA and FHA. These programs were designed primarily for owner-occupants and some have income or occupation restrictions. FHA loans are gaining in popularity and don't even require a credit score.
I have been to a Tardus presentation and I know people who've worked for the company. Tardus' original mission was to provide homeowners a system, utilizing credit cards and a HELOC, to front-load their mortgage -- theoretically paying down the principal more quickly. Ms. Souza now seems to be positioning them as a credit repair shop. They don't broker or lend money. You might find their Hawaii BBB report here interesting. Although their multiple complaints are mostly resolved, it's very odd that the company's principal is an administrative assistant.
Oh, and I apologize for the slightly inflammatory title, but I already spend hours everyday educating and advising my clients about mortgages. I could not stand idly by while Ms. Souza spreads potentially harmful misinformation in order to steer more business to her own company. Hopefully, Andy will attract other sponsors with some ethics and who won't demand seat time. Best of luck to him.
I usually don't post on HT regarding work-related issues (mortgage broker) as I usually come here for escape and release. But Ms. Souza's irresponsible and misleading comments about the mortgage market cannot go unanswered.
Lie #1: There is no more subprime.
Fact: There are a surprising number of subprime lenders in business and still funding loans in Hawaii despite a culling of the herd. In fact, there are more subprime lenders available to us than the number of years since Ms. Souza left Goodsill Anderson Quinn & Stifel LLP to take the helm of Tardus Financial Services of Honolulu.
Lie #2: People with a credit score < 680 "can't get a home."
Fact: I'm assuming she was referring to securing financing to purchase a home, as she made a broad generalization. But not only can people with credit < 680 secure financing to buy a home, they can qualify for multi-million dollar loans to purchase large commercial and residential projects ... if they have enough verifiable income.
Lie #3: People with a 700 credit score or better can put 10% or 15% down (on a purchase) where before they could put down 5% of 0%. Today it's just not the case that you can get 100% financing.
Fact: There are still many mortgage programs which offer up to 100% financing for purchases and rate-and-term refinances. Short list: Freddie Mac 100, Home Possible 100, Fannie Mae Flex 100, My Community, VA and FHA. These programs were designed primarily for owner-occupants and some have income or occupation restrictions. FHA loans are gaining in popularity and don't even require a credit score.
I have been to a Tardus presentation and I know people who've worked for the company. Tardus' original mission was to provide homeowners a system, utilizing credit cards and a HELOC, to front-load their mortgage -- theoretically paying down the principal more quickly. Ms. Souza now seems to be positioning them as a credit repair shop. They don't broker or lend money. You might find their Hawaii BBB report here interesting. Although their multiple complaints are mostly resolved, it's very odd that the company's principal is an administrative assistant.
Oh, and I apologize for the slightly inflammatory title, but I already spend hours everyday educating and advising my clients about mortgages. I could not stand idly by while Ms. Souza spreads potentially harmful misinformation in order to steer more business to her own company. Hopefully, Andy will attract other sponsors with some ethics and who won't demand seat time. Best of luck to him.
Comment