Are Banks Still Lending?

[Nietzsche13]

Originally Posted by MODE ROGUE

The Government Housing & Economic Recovery Act

How does that work?

[Oblivian]

Originally Posted by MODE ROGUE

I don’t know how well you know that poster but if you think the he believes the ONLY way to get a loan today is to put 20% down, you are sadly mistaken.

I don't know the poster at all and I wasn't attacking him in any way. He posted "you will need 20% down plus good credit". I didn't know that meant "you won't need 20% down and you won't need good credit". Again, I pointed examples where that 20% isn't necessary and good credit isn't necessary either.

Originally Posted by MODE ROGUE

Really, you can pull files? LOL. C’mon man, I’ve owned my own brokerage for years. Once again, WHO THE HELL IS SAYING THAT BANKS ARE NOT LENDING ? The dead horse that continues being punched in the mouth here is that banks are lending LESS. They’re making it harder (which you have acknowledged) and they’re lending less (which every national statistic on the planet supports). Unless you disagree with that, we have nothing else to talk about.

I was saying I can pull files related to the below post. You were doubting what I was saying so I was giving you details. You are the one that keeps harping on owning a brokerage. The topic isn't if banks are lending. I never said they weren't and was never in a discussion if they were or not. The topic I was discussing was down payments and credit standards. I did indeed acknowledge that it is getting tougher, but it's getting tougher with a starting point at RIDICULOUSLY low standards. YOU CAN STILL GET A LOAN IF YOU HAVE HAD A BANKRUPTCY, JUDGMENTS, AND A LOW CREDIT SCORE! So you can't say there are "tight" standards.

Originally Posted by MODE ROGUE

Most of his post (Nietzsche) was indeed accurate. To be very honest, I’m astonished that you have prospects with 3 year old bankruptcies and unpaid judgments receiving financing. You specifically mentioned Nat City & Wells as lenders you work with. I’ve done TONS of business, with both, for many years and have outstanding relationships with my reps there. There is no way on god’s green earth that they would approve the types of loans you have described here. For that matter, I don’t know a single bank in America that would approve those loans.

Who are you getting the approvals from? More than anything, I could use that information to process some files. I genuinely hope you’re not BS’ing…

[MODE ROGUE]

Originally Posted by Nietzsche13

How does that work?

Not a lot of details yet. From what I understand, home owners with negative equity will be able to refinance their home at 90% of the current market value. The government insures the difference (i.e. – neg. equity) which translates to a write off for the bank. If the homeowner sells the property in the future, 50% of any proceeds are returned to FHA.

Clearly, this would allow people to salvage their home & credit and take advantage of a low, fixed (30 yr) interest rate.

[MODE ROGUE]

Originally Posted by Oblivian

I don't know the poster at all and I wasn't attacking him in any way. He posted "you will need 20% down plus good credit". I didn't know that meant "you won't need 20% down and you won't need good credit". Again, I pointed examples where that 20% isn't necessary and good credit isn't necessary either.



I was saying I can pull files related to the below post. You were doubting what I was saying so I was giving you details. You are the one that keeps harping on owning a brokerage. The topic isn't if banks are lending. I never said they weren't and was never in a discussion if they were or not. The topic I was discussing was down payments and credit standards. I did indeed acknowledge that it is getting tougher, but it's getting tougher with a starting point at RIDICULOUSLY low standards. YOU CAN STILL GET A LOAN IF YOU HAVE HAD A BANKRUPTCY, JUDGMENTS, AND A LOW CREDIT SCORE! So you can't say there are "tight" standards.

Ok man. I understand. Lending guidelines are not tight. People with bankruptcies, judgments and low credit scores can get loans. No problem. Gotcha.

[PainIsLIfe]

Banks are lending, but only to more qualified borrowers. Gee, what a novel idea.

[Oblivian]

Originally Posted by MODE ROGUE

Ok man. I understand. Lending guidelines are not tight. People with bankruptcies, judgments and low credit scores can get loans. No problem. Gotcha.

Don't be mad because I went against what you were saying and had proof to back it up. When someone says 20% is NEEDED, potential borrowers on here believe it. Same with the strict credit guidelines speech. If you have a 600 score and enough for 5% down, I'd say go to a bank and see what they can do. They'll probably refer you to someone who can help you if they can't.
You should appreciate me giving out this info since you are in the brokerage business. SELL SELL SELL!

[Nietzsche13]

Originally Posted by MODE ROGUE

Not a lot of details yet. From what I understand, home owners with negative equity will be able to refinance their home at 90% of the current market value. The government insures the difference (i.e. – neg. equity) which translates to a write off for the bank. If the homeowner sells the property in the future, 50% of any proceeds are returned to FHA.

Clearly, this would allow people to salvage their home & credit and take advantage of a low, fixed (30 yr) interest rate.

I don't like the part where the government insures the losses.

[MODE ROGUE]

Originally Posted by Nietzsche13

I don't like the part where the government insures the losses.

Agreed but we have to understand there is no perfect solution.

[MODE ROGUE]

Originally Posted by Oblivian

Don't be mad because I went against what you were saying and had proof to back it up. When someone says 20% is NEEDED, potential borrowers on here believe it. Same with the strict credit guidelines speech. If you have a 600 score and enough for 5% down, I'd say go to a bank and see what they can do. They'll probably refer you to someone who can help you if they can't.
You should appreciate me giving out this info since you are in the brokerage business. SELL SELL SELL!

Mad? Hardly. And, LOL at you thinking that potential buyers who read this thread will decide whether or not they’ll speak to a mortgage professional based on what “Oblivian” or “Mode Rogue” has to say. Get real. Anyway, you live in a world where a 600 score and having 5% to put down gets you a loan. I live in a different world. Let’s just leave it that.

Oh, and stop saying you’ve provided “facts.” Citing your personal email exchanges and presenting them as “facts” is embarrassing.

[Oblivian]

Originally Posted by MODE ROGUE

Oh, and stop saying you’ve provided “facts.” Citing your personal email exchanges and presenting them as “facts” is embarrassing.

You have to try to throw a final jab out there. You specifically said, "there is no way a bank in the United States would lend with a bankruptcy." I am at home and said I can't pull out the file for all details. The best I could do right now is get into my email and paste the reply. Do you really think that wasn't a legit email?
Each of those scenarios are true and I can provide more evidence, so yes, they are FACTS.

To get back on track, you are right that there is no solution to the problem right now. We also have multiple households with negative equity here as well. I used to think that lending standards for a customer post-foreclosure should be really strict, but there are so many people that have been foreclosed on that the housing market would be hard hit even more in the coming years.
The whole industry has become far too sales oriented. I can't remember how many orders we've had that realtors, mortgage brokers, and lenders try to "push" through when there are clearly issues dealing with the ability to be insured. Realtors and brokers could car less about defects in chain of title, judgments on buyers, tax issues, etc. It's all about selling. The lack of knowledge with some lenders and realtors I've dealt with is ridiculous as well. If you can sell without knowing the "ins and outs" of real estate, it doesn't matter. Because after all, you are selling.