Are Banks Still Lending?

[Nietzsche13]

The Real Reason for the Global Financial Crisis?the Story No One?s Talking About :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website

Inside the Credit Crisis: How the Fed’s Efforts to Lower the Fed Funds Rate May Leave it Powerless to Stop the Financial Meltdown

Do yourselves a favor and read both of these articles. Must read stuff. Credit defaul swaps and the $500 trillion derivatives market....

[Oblivian]

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…

The bankruptcy wasn't any of those I mentioned. It was a fly by night. Wells Fargo and National City are doing 95%. I believe they may still be doing 97%, I'll check at the office tomorrow. We've paid off judgments multiple times with Wells Fargo (both Wells Fargo Bank and Wells Fargo Home Mortgage). I can definitely give you details on unpaid judgments approved for financing. We've also not paid off judgments with Wells Fargo since purchase money mortgages take precedent as far as being first lien over existing judgments.
Wells Fargo has VERY lax standards. As a matter of fact, a local credit union and Salin Bank send people directly to Wells Fargo if they deny someone in this town. Here's my email to our underwriter for the only proof I can give you from home. The first message is the reply from the underwriter.:

"Chad, If Nat City was not included in the bankrutpcy or named as a creditor,
then their lien(s) would still survive bankruptcy. I'd like to see the title
commitment. Can you please email it to me? What is the bankruptcy case no.? Is
it the northern district?

________________________________

From: EDITED [mailto:EDITED]
Sent: Mon 10/6/2008 3:13 AM
To: EDITED
Subject: Re: Bankruptcy Question



EDITED,
Have you had a chance to look at this yet? The buyer is anxious on this one.
If you need anything else, please let me know.
Thanks,
Chad

-------------- Original message ----------------------
From: EDITED
EDITED,
This is EDITED from EDITED again. I have a question for you regarding a bankruptcy. We have an order for a sale with a mortgage from an estate to EDITED. This purchase is for $26,500 and the purchasers are getting a purchase money mortgage with GMAC. The EDITED have been previously foreclosed on (see attached) back in 2005. There are two
judgments entered relating to the foreclosure. The foreclosure file is very large because there was a dispute over the sheriffs sale afterwards. The foreclosure attachment sums up what occurred with that.
However, no bankruptcy information was filed in the foreclosure file. We discovered that the EDITED had filed bankruptcy back in March of 2005 through the Pacer Login/Bankruptcy site we are able to access. My question relates to the chain of events:
In February 2005, the foreclosure is filed. In March 2005, the bankruptcy
is filed which does notify National City. The Discharge occurs before the
completion of the foreclosure in July 2005. The foreclosure judgments hit in October 2005 after the discharge. Does the bankruptcy take care of these judgments? We thought the judgments should have been IN REM, but they are not. If you need anything else from the foreclosure file, please let me know. The file is very large due to the
situation dealing with the sheriff's sale after the decree was filed so I was unable to pull everything.

Thanks,
EDITED
"

Again, I can pull over 40 mortgages in the past month that are 97% mortgages.

[Gotti McCarran]

Originally Posted by Nietzsche13

The Real Reason for the Global Financial Crisis?the Story No One?s Talking About :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website

Inside the Credit Crisis: How the Fed’s Efforts to Lower the Fed Funds Rate May Leave it Powerless to Stop the Financial Meltdown

Do yourselves a favor and read both of these articles. Must read stuff. Credit defaul swaps and the $500 trillion derivatives market....

Stop leaning on others dude. IF THEY GET CLOUD ON THE INTERNET AND APPEARANCES ON TV THEY ARE EITHER FAKE OPPOSITION OR PSYOPS. If you learn something from 9/11, than it would be that there is nobody giving you the truth out there that ever gets popular. The biggest con artists and fakers, the biggest posers, they get the traffic, the mention the name and they bury their ideas deep for everyone to see on the media.

So I suggest if I do look through this look for gate keeping. Look for the big lie that gets protected by any means. See, Ron Paul is controlled as well. If I had any doubt about this it ended during his campaign. It as ridiculous how big his support and donations were and what he managed to do with it. When he decided for tactical reasons to let the media completely crash his campaign while standing by doing nothing, this was when I became 100% sure that was his job.

They tell you the truth for as long as it takes for you to gain trust and they do this simply to sink the big lie that needs to be protected or sometimes to channel your anger into a harmless path they control.

They are not the Jews, the Zionist, the Jesuits, the Neo-Cons or whatever little part of the bigger picture crazy people blame this on. It's a well organized powerful shadow government consisting of the CFR, Trilateral Commission and Bilderberg that really runs things and they give a fuck about all the superficial divisions they give us to rule us. They are black Democrats, Japanese Republicans, German farmers,.....,anything....as long as you're rich, influential and you lie your ass of to support the course, mainly centralizing all power in their hands.

It's real and people need to understand this has nothing to do with alien conspiracies, it's about making money and getting power, very real things.

[Oblivian]

Furthermore, regarding the above issue, I spoke with our attorney before I contacted underwiting (he was handling the estate). I said I was astonished that GMAC would lend to someone with a bankruptcy 3 years ago. Also, there were A TON of creditors notified in the bankruptcy. Our attorney used to do bankruptcies and said it happens all of the time. Some banks look at it as "Well this person no longer has any debt and this person has a job. The average joe has other debts outstanding. This person probably won't mess up again."
Again, with the judgments, it's insane to me. I've informed the Loan Officer for Wells Fargo asking if we are paying off the judgment (again, we don't HAVE to since the purchase money mortgage will take precedent as first lien - refinances are a different story) and the response is "he has a judgment?". How they do not find this in their underwriting procedure blows my mind. Also, we've done MULTIPLE refinances with big banks that are specifically pulling out equity to pay off judgments + federal tax liens.

[takeahnase]

Originally Posted by KidBaize

Also referred to as "Dark Pools" [of capital], they are unregulated and over-the-counter bilateral contracts that constitute a large part of current global trade. Because they are so opaque and without oversight, they pose a huge risk to the global financial system. It has been suggested that our current crisis is really the unwinding of these dark pools. And since no one knows how large the system has become, that uncertainty is adding to the daily volatility in the markets and to Bernanke and Paulson's panicked urgency for govt intervention.

One of the best articles I've read on the subject, written in July before the crisis began (very good):

Are "Dark Pools" Destined to be the Capital Markets' Next Black Hole?

It goes on to list some of these private exchanges.

So on the one hand you want to get rid of banking (by introducing 100% reserve requirements) and at the same time you are critical of OTC trading/lending?

[MODE ROGUE]

Originally Posted by Oblivian

The bankruptcy wasn't any of those I mentioned. It was a fly by night. Wells Fargo and National City are doing 95%. I believe they may still be doing 97%, I'll check at the office tomorrow. We've paid off judgments multiple times with Wells Fargo (both Wells Fargo Bank and Wells Fargo Home Mortgage). I can definitely give you details on unpaid judgments approved for financing. We've also not paid off judgments with Wells Fargo since purchase money mortgages take precedent as far as being first lien over existing judgments.
Wells Fargo has VERY lax standards. As a matter of fact, a local credit union and Salin Bank send people directly to Wells Fargo if they deny someone in this town. Here's my email to our underwriter for the only proof I can give you from home. The first message is the reply from the underwriter.:
Again, I can pull over 40 mortgages in the past month that are 97% mortgages.

Sure man, 97% mortgages are nothing rare. It’s FHA. That’s basically the only show in town now. Furthermore, no one is saying 95% conventional loans have disappeared. Of course they’re still around. What’s changed is the ease of acquisition which explains increased down payment requirements in many cases.

The experiences you’re describing with Wells and their “lax” guidelines are completely opposite to the reality I face in Florida. Wells’ reputation here is totally rigid. I’m sure that it may have something to do with geography (Indiana vs. FL) but I can assure you that YOUR experience is NOT the norm on a national scale.

[Oblivian]

Originally Posted by MODE ROGUE

Sure man, 97% mortgages are nothing rare. It’s FHA. That’s basically the only show in town now. Furthermore, no one is saying 95% conventional loans have disappeared. Of course they’re still around. What’s changed is the ease of acquisition which explains increased down payment requirements in many cases.

The experiences you’re describing with Wells and their “lax” guidelines are completely opposite to the reality I face in Florida. Wells’ reputation here is totally rigid. I’m sure that it may have something to do with geography (Indiana vs. FL) but I can assure you that YOUR experience is NOT the norm on a national scale.

I'm not talking about strictly FHA with 97%. Conventional as well. I'm not in disagreement with Florida and Indiana being completely different. However, all of our loans with Wells Fargo are processed and underwritten outside of Indiana.
I find it odd that you assume Florida is the norm above Indiana being the norm. Florida may be really rigid because of all the screw-ups there that got foreclosed on. I'm sure California may be the same way. However, I spoke with someone from Minnesota recently (I have a thread in Mayberry about it) in which she said they are still lending at 95%. She was in Minneapolis!

Specifically:

Originally Posted by MODE ROGUE

Furthermore, no one is saying 95% conventional loans have disappeared. Of course they’re still around. What’s changed is the ease of acquisition which explains increased down payment requirements in many cases.

Uhmm...I believe someone is. Hence why I am in this thread. See below...

Originally Posted by Nietzsche13

What the banks are doing is raising the down payment requirement. The days of no money down are gone forever. You will need 20% for now on plus great credit.

I am telling you, the norm in Indiana is 95% right now. Apparently that is how it is in Minnesota right now as well. I've also seen a lot of loans going through overextended and without good credit. These are from NATIONAL banks with underwriting down out of state. I find it hard to believe they are doing this just in Indiana. Tomorrow, I can find out the score in Illinois as well. I'm willing to be it is NOT 20% down.

[Oblivian]

Originally Posted by MODE ROGUE

Wells’ reputation here is totally rigid.

I find this statement odd. How many properties does Wells Fargo own currently in Florida?

[jerrylundergard]

Originally Posted by MODE ROGUE

Sure man, 97% mortgages are nothing rare. It’s FHA. That’s basically the only show in town now. Furthermore, no one is saying 95% conventional loans have disappeared. Of course they’re still around. What’s changed is the ease of acquisition which explains increased down payment requirements in many cases.

The experiences you’re describing with Wells and their “lax” guidelines are completely opposite to the reality I face in Florida. Wells’ reputation here is totally rigid. I’m sure that it may have something to do with geography (Indiana vs. FL) but I can assure you that YOUR experience is NOT the norm on a national scale.

Yo dog, as a fellow from miami I completely understand why these banks wouldnt loan to anyone. This fucking place is a total disaster. The prices have shot up around here and are still through the roof. Everyone here is trying to sell but noone is buying. Its almost funny driving around and all the 4sale signs. These banks are smart as hell to avoid lending in this environment. Home prices here in dade fell what, 20 percent last year? They are expected to do the same this year too. Hell, I wouldnt buy next year either. This market still has a home surplus of what, 4 years? This place should be avoided at all costs right now as prices are guaranteed to drop. I wouldnt touch this market till prices are nearing 2000 levels. 140k was the median in 2000, 160k in 2001,185k in 2002, 225k in 2003, 275k in 2004, 350k in 2005, 375k in 2006, 272k in 2007. This place went fucking nuts man! Miami has one of the lowest pay rates in the country. These immigrants cant afford this place and I love the implosion. Those kind of increases without corelating increases in salary should of been a big alert to everyone.

[MODE ROGUE]

Originally Posted by Oblivian

I'm not talking about strictly FHA with 97%. Conventional as well. I'm not in disagreement with Florida and Indiana being completely different. However, all of our loans with Wells Fargo are processed and underwritten outside of Indiana.

Doesn’t matter where it’s underwritten. It’s all about where it’s originating.

Originally Posted by Oblivian

I find it odd that you assume Florida is the norm above Indiana being the norm. Florida may be really rigid because of all the screw-ups there that got foreclosed on. I'm sure California may be the same way. However, I spoke with someone from Minnesota recently (I have a thread in Mayberry about it) in which she said they are still lending at 95%. She was in Minneapolis!

Florida is more “the norm” because home sales and lending trends in this state are consistent with what is happening throughout the country. Hence…. the lending/real estate crisis.

Originally Posted by Oblivian

Uhmm...I believe someone is. Hence why I am in this thread. See below..

uhmmm…. He said the days of NO MONEY DOWN are gone. He is correct. He did not say 95% conventional loans are gone.

Originally Posted by Oblivian

I am telling you, the norm in Indiana is 95% right now. Apparently that is how it is in Minnesota right now as well. I've also seen a lot of loans going through overextended and without good credit. These are from NATIONAL banks with underwriting down out of state. I find it hard to believe they are doing this just in Indiana. Tomorrow, I can find out the score in Illinois as well. I'm willing to be it is NOT 20% down.

Let me try this one more time. The issue is not whether or not 95% conventional loans are taking place or higher down payment requirements are coming up. Everyone is aware of BOTH. The issue is how many people are actually being approved for loans, period. ANY loans. Lending guidelines have tightened up everywhere. Anyone who denies that is living in cave or simply has no idea of what’s going on in the lending industry. Therefore, understanding that lending guidelines have become much stricter obviously translates to understanding that the # of loans being processed is in a significant downward spiral.