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  • Mortgage Mayhem

    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.
    "If it's brown, it's cooked. If it's black, it's f***ed" - G. Ramsey

  • #2
    Re: Mortgage Mayhem

    If I ever need a home equity loan or a new mortgage, I'm coming to see you. I like your optimistic clarification of facts.
    sigpic The Tasty Island

    Comment


    • #3
      Re: Mortgage Mayhem

      MixedPlateBroker, Mighty impressive! P.K. and I will call you too!!!

      Auntie Lynn
      Be AKAMAI ~ KOKUA Hawai`i!
      Philippians 4:13 --- I can do all things through Christ who strengthens me.

      Comment


      • #4
        Re: Mortgage Mayhem

        Mahalo Pomai and Auntie Lynn. I look forward to it!

        I'm a big believer in educating my clients so they can make informed decisions. I've even been thinking about starting an informational thread about mortgages to put out some genuinely helpful information for everyone. If anyone would find that interesting, please let me know.
        "If it's brown, it's cooked. If it's black, it's f***ed" - G. Ramsey

        Comment


        • #5
          Re: Mortgage Mayhem

          Most definitely! We look forward to your information!

          Mahalo

          Auntie Lynn
          Be AKAMAI ~ KOKUA Hawai`i!
          Philippians 4:13 --- I can do all things through Christ who strengthens me.

          Comment


          • #6
            Re: Mortgage Mayhem

            Originally posted by MixedPlateBroker View Post
            Mahalo Pomai and Auntie Lynn. I look forward to it!

            I'm a big believer in educating my clients so they can make informed decisions. I've even been thinking about starting an informational thread about mortgages to put out some genuinely helpful information for everyone. If anyone would find that interesting, please let me know.

            Yes, please do start the thread. I'm interested, and I know my husband is, too. Thanks for offering.

            Comment


            • #7
              Re: Mortgage Mayhem

              Great idea, MPB.

              Comment


              • #8
                Re: Mortgage Mayhem

                Originally posted by MixedPlateBroker View Post
                I've even been thinking about starting an informational thread about mortgages to put out some genuinely helpful information for everyone. If anyone would find that interesting, please let me know.
                While I can hear Ryan make the standard disclaimer about following advice found on an internet discussion board - it sounds like a fine idea. Not a service I need at present (having become a first-time homeowner about five years ago), but the mortgage world has both constants and variables that it would be great to gain information on, particularly from those in the know. I would think you and timkona would have plenty to share with us.

                Comment


                • #9
                  Re: Mortgage Mayhem

                  Originally posted by Leo Lakio View Post
                  I would think you and timkona would have plenty to share with us.
                  Yes, I'd like to hear a realtor's point of view.

                  Comment


                  • #10
                    Re: Mortgage Mayhem

                    We had a credit score of 670 and bought a home with NO money down and at 5.5% no problems.
                    Since when is psycho a bad thing??
                    Sharing withother survivors...
                    www.supportandsurvive.org

                    Comment


                    • #11
                      Re: Mortgage Mayhem

                      When I bought my condo, I had a mortgage broker who was a former teacher, so he really explained the ins and outs of home financing to me. I also had a real estate agent who represented me instead of the seller (she also still teaches adult ed classes on home financing and refinancing and FSBO) so I had a really good education. Got my condo with 20% down, so I avoided the extra PMI that was required at the time on conventional loans.

                      Miulang
                      "Americans believe in three freedoms. Freedom of speech; freedom of religion; and the freedom to deny the other two to folks they don`t like.” --Mark Twain

                      Comment


                      • #12
                        Re: Mortgage Mayhem

                        Originally posted by blueyecicle View Post
                        We had a credit score of 670 and bought a home with NO money down and at 5.5% no problems.
                        How long ago? There's been a fairly dramatic shift in the market in the past 6 weeks or so. MPB, please correct me if I'm wrong about the timing of the shift. Google will probably turn up lotsa info! I'm too lazy to check it myself!

                        Comment


                        • #13
                          Re: Mortgage Mayhem

                          Beware! The United States is at the peak of the worst national housing bubble in history. It's only begun. There will be blood in the streets.

                          To protect yourself;

                          1) Do not trust Mortgage Brokers
                          2) Do not trust Real Estate Agents.

                          They are both motivated by commission only.

                          From www.prweb.com;

                          1. If you currently have a "Pay Option Adjustable Rate Mortgage", get out of it if you can afford to. If you can't afford to get out, Americas Watchdog highly recommends that you contact your lender & demand a fixed rate product. If this does not work, the homeowner might want to consult with a bankruptcy attorney.

                          2. If a homeowner is attempting to sell a home in many major US markets they will either have to lower their asking price, or they might be better off renting the home for at least three years.

                          3. If you are a buyer, wait if you can.

                          In the opinion of Americas Watchdog, 2008 will bring more real estate price reductions in the southwest, southeast and northeast. In some markets like California, reductions could be 15% or more.

                          4. If you are an existing homeowner with adjustable rate mortgage, refinance your mortgage into either a 30 year fixed rate mortgage, or get a five or seven year adjustable rate mortgage and stay put. If an existing homeowner has a good mortgage product---say put.

                          5. Individuals who are Veterans, homeowners/consumers who have average to even poor credit or first time homeowners, should strongly consider getting a FHA or VA Mortgage. FHA & VA mortgage products might be the absolute best mortgage products available in today's mortgage arena.

                          6. If a homeowner or consumer is looking for a A+ honest mortgage lender, Americas Watchdog has endorsed American Interbanc as the best priced conventional mortgage lender doing business in the US for individuals with good to excellent credit ("the mortgage lender bankers go to"). American Interbanc's web site is at Http://americaninterbanc.com and their toll free number is 1-800-724-0004.

                          7. Do not finance or refinance your home without the National Mortgage Complaint Center doing a thorough examination of your mortgage documents. On average the National Mortgage Complaint Center saves consumers $500 to $1000 on their mortgage fees. The cost of this inspection service is $65, or for a full mortgage review to see if a consumer was cheated the cost is $150. The National Mortgage Complaint Centers Web Site is located at Http://NationalMortgageComplaintCenter.Com & their phone number is 1-866-714-6466.

                          8. Consumers should not fall for too good to be true "no cost" mortgages or Internet solicitations.

                          9. Consumers & homeowners should demand honest answers from elected officials. Americas Watchdog for years has been advocating that banks and mortgage bankers disclose the same fees that mortgage brokers must disclose. Specifically "yield spread premiums". A "yield spread premium" is a kick back mortgage lenders get for increasing a consumers interest rate/monthly mortgage payment. Mortgage Brokers have to disclose these fees, banks or mortgage bankers do not.

                          BEWARE: If it is cheaper to rent than to buy with a 20% downpayment and a FIXED 30 year rate, you are being screwed.

                          Comment


                          • #14
                            Re: Mortgage Mayhem

                            Originally posted by tutusue View Post
                            How long ago? There's been a fairly dramatic shift in the market in the past 6 weeks or so. MPB, please correct me if I'm wrong about the timing of the shift. Google will probably turn up lotsa info! I'm too lazy to check it myself!
                            You could actually still get that ... if you qualify for a VA loan and can secure additional seller credit or gift funds. Otherwise, it's most likely not within the last few months.
                            "If it's brown, it's cooked. If it's black, it's f***ed" - G. Ramsey

                            Comment


                            • #15
                              Re: Mortgage Mayhem

                              Originally posted by MixedPlateBroker View Post
                              Mahalo Pomai and Auntie Lynn. I look forward to it!

                              I'm a big believer in educating my clients so they can make informed decisions. I've even been thinking about starting an informational thread about mortgages to put out some genuinely helpful information for everyone. If anyone would find that interesting, please let me know.
                              Is it true that if your mortgage company goes broke, you stand to lose your house, even if you have kept up with the paymens?
                              http://thissmallfrenchtown.blogspot.com/
                              http://thefrenchneighbor.blogspot.com/

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