Posted by Charm_AL on 6/23/05 7:58am
Msg #47061

monthly ARM???

I did a refi signing yesterday for a Florida property....elderly couple so cute, married 57 years and somewhat naive.
This was the first time during a signing that my conscience kept yelling at me :(
Man, I can't believe what happens out here and the smooth talking crooks that take advantage of people!
It makes me sick not to be able to say "why on earth would you want to do this?!?!?"
I felt bad all night, thinking about them and took it to bed with me. How do you get over some of what we have to go thru?

Reply by Philem_OH on 6/23/05 8:29am
Msg #47075

About the only thing you can do is make sure that you give the general explaination of documents to them. Make a point of pausing when you finish an telling what a document is. I find that if I give this slight pause, the borrower will take this opportunity to ask questions. We're not allowed to say anything, but write the question down while saying, "Good question. Let me jot this down, and we'll call the LO about it."

It's a bear, I know, but with the way we're constrained, there's not squat-all much we can do about it. My conscience, however, has NO qualms about making SURE the borrowers have all their questions answered before signing. :-)

-Jim

Reply by Melody on 6/23/05 10:31am
Msg #47105

I do what Philem does

Plus I absolutely refuse all Ameriquest, Argent, Town & Country, Household Finance, and Beneficial Finance work.

The deal that made me refuse above companies:
First refi ARM starting at 10.99% and quickly jumping to 24.99%.
First 10 years interest only payments then a balloon due to get caught up on principal.
Very high lender closing fees.

My stomach just can't take it when I am used as a tool for these evil lenders.

Reply by Sonkat/NJ on 6/23/05 8:44am
Msg #47081

I know exactly how you feel. I usually feel that way when borrowers are getting ripped off by mortgage borkers and loan officers who are con artists-for their big fee. I have reviewed paperwork where they are getting ripped off for thousands of dollars and say they "really trust their mortgage person, they made personal friends with him." I want to throw up.

Reply by Charm_AL on 6/23/05 8:48am
Msg #47084

yep, and I really love those 8-9k closing costs! so sad

Reply by Calnotary on 6/23/05 10:03am
Msg #47103

It would be nice that the borrowers will hire us directly, so we dont have a fiduciary duty to the SS or the TC.

After all they are ones that pay us(borrowers). I will see many loans cancelled and we still be paid by the borrowers. Since we saved them from a fiasco!LOL

Reply by Teasa/NY on 6/23/05 11:20am
Msg #47120

While I'm waiting for fedex.....

What I see ocassionally is a very professional couple, with a beautiful home and good incomes and they have an adjustable with outrageous closing costs (the highest I have seen is $15,000). Maybe there are credit issues, but I always wonder why such seemingly intellegent people would go with that deal. But human nature being what it is who knows.

Reply by Nancy in Florida on 6/23/05 11:25am
Msg #47122

I feel the same way, I get so upset when I see a borrower getting ripped off especially those broker fees! I have seen some as high as $11-$12K and it is mostly broker fees, underwriting, processing, doc prep, etc. These junk fees are all just pocket money for the Broker and they rip off very unsuspecting naive people. The elderly really bother me the most. I fear for them losing their homes. I too explain everything and write the questions down and contact the broker for answer. Unfortunately these brokers have a way of convincing the borrower it is a good deal and to proceed.

I had one in which nothing was told to the borrower up front, didn't know it was an ARM, rate was higher, didn't know about prepayment penalty and the closing costs were outrageous. He contacted the broker and L/M I was about to leave when he called back and the lies he told the borrower to get him to proceed with the signing was unbelievable.

Reply by Cherilyn in CO on 6/23/05 12:44pm
Msg #47141

Yep-just had one. Bwr had a 690 credit score too. nt

Reply by Charm_AL on 6/23/05 6:48pm
Msg #47252

Re: Yep-just had one. Bwr had a 690 credit score too. nt

wow 690? and an ARM?...what gives?
Unbelievable!

Reply by Anon on 6/23/05 12:44pm
Msg #47142

I have a friend who took an option ARM (monthly adjusted with various options for payment) 5 years ago (because her credit left something to be desired). Me, with my Mid-700 great credit took a fixed at 7.125. Over the past five years she has made out great with her interest rate. I had to refinance to lower my rate.

I agree with you on some of these companies. When I see these loans I know we are good for close to 2 hours. The first hour is the borrower going back and forth with Simon Legree (spell.) the mortgage broker/loan officer. The borrowers are not give all the facts. But it you look closely in MOST of these cases, the borrower is in dire financial straits. Alot of the loans are 2/28. The idea is that they will fix their credit in 2 years and refinance again (yes, at a high cost, I am sure). But if you could and you shouldn't ask the borrower....they are in so much credit card debt at 22% maybe in some instances. Anyhow they are up against the wall. So, these dirtbags are in business to take advantage of the situation. And the other news is that if it weren't for these companies , these people could not borrow a dime.

I too, have seen older people in Florida taken advantage of. Because some mortgage officer tells them they can reduce their monthly payment. And it is true. Unfortunately it is their money. I saw one with 22,000 in closing costs for a 78 year old man. If he had signed, it would have taken him 22 years to break even.

One man was refinancing because he was told then he could set up an escrow account. That is all he wanted.

These two did not take place by the way. No further comment on that. But this is a touchy situation obviously.

Reply by ERNA_CA on 6/23/05 6:57pm
Msg #47253

The worst one I saw had $16,000.00 closing cost fees. I was sick, Thankfully the borrowers saw the fee and decided not to sign. But the lender was telling them on the phone they should defiantly do it as it would guarantee them a higher credit score, wonder how he was gonna back that one up. Anything to steel their equity. Its sickening.