Posted by Shoshana/AZ on 10/8/10 8:51am
Msg #355924

Wells Fargo is in the soup now!

Attorneys General in 8 states sued them over the Pick A Payment Loan.

http://www.walletpop.com/blog/2010/10/06/wells-fargo-will-pay-24-million-to-settle-pick-a-payment-alle/?icid=main%7Chtmlws-main-n%7Cdl6%7Csec3_lnk1%7C176012

Reply by MichiganAl on 10/8/10 10:11am
Msg #355933

Good. Worst mortgage program ever

Not only was it a terrible product to offer the average Joe, but the note and other documents explaining the product were incomprehensible. I'm not a stupid guy (shut up all of you), but I spent hours and hours reading through the note, trying to understand it, trying to get the gist of it so I could show the borrowers SOMETHING that gave them an idea of what they were signing, but to no avail. There was really no clear explanation that laid out the four options in plain English. I had no choice but to direct the borrower to their loan officer (the one who was selling them that garbage in the first place) if they had any questions about the product.

I believe most products have their value. Interest only, adjustable, balloons, they are all products that can work in the proper situation. But in my opinion, the option arm was deceptive.

Reply by CopperheadVA on 10/8/10 2:21pm
Msg #355969

Re: Good. Worst mortgage program ever

OMG, Al I am so glad you said that! I remember doing one pick-a-payment loan, and I just could not understand the Note myself. I thought it was just me! I also referred the borrowers to their loan officer for explanation of that doc. This was a nasty loan with a 1% teaser rate for the FIRST MONTH! I remember there was $27,000 in broker fees, too. Yes, they signed!

Reply by CopperheadVA on 10/8/10 2:59pm
Msg #355976

Re: Good. Worst mortgage program ever

OMG, Al I am so glad you said that! I remember doing one pick-a-payment loan, and I just could not understand the Note myself. I thought it was just me! I also referred the borrowers to their loan officer for explanation of that doc. This was a nasty loan with a 1% teaser rate for the FIRST MONTH! I remember there was $27,000 in broker fees, too. Yes, they signed!

Reply by Seanaidan on 10/8/10 3:46pm
Msg #355983

Re: Good. Worst mortgage program ever

You explained the NOTE to borrowers? Was that your job?

Reply by MichiganAl on 10/8/10 5:41pm
Msg #355991

Read it again

I said "so I could SHOW the borrowers something that gave them an idea of what they were signing." And yes, going over key terms in their note and other loan documents and giving them a general description of the document they're signing is absolutely my job as a signing agent.

Reply by Hugh Nations Signing Agents of Austin on 10/9/10 2:12pm
Msg #356060

Was that your job?

I have always regarded it as my job to explain the *purpose* of a document to the borrowers: The deed is what's recorded to show there is a loan against the property, the TIL shows you the true cost of your loan. Further, where the terms are plain on their face -- 30-year note, XX percent interest -- I also point out the terms. What I don't do is attempt to apply those terms to the borrowers' individual situation; that, I think, slides over into giving legal advice.

It's a fairly distinct line; maybe not bright, but distinct.

Reply by James Dawson on 10/8/10 3:57pm
Msg #355984

Re: Good. Worst mortgage program ever

Good for you Al, doing everything you possibly could to accommodate the borrower. We wear two hats, Notary and Signing agent...I would do the same.

Reply by SheilaSJCA on 10/8/10 5:59pm
Msg #355994

Wells Fargo in and of itself is fine, it is the fact that they acquired Wachovia, who acquired World Savings, the original pick-a-payment outfit. Wells fargo does not offer those types of loans.

Reply by Shoshana/AZ on 10/8/10 6:56pm
Msg #355997

They did offer those loans as did WaMu and CW, for example.

Almost every lender offered those loans. It seems so curious to me that the Sandlers (owners of Golden West Financial/ World Savings) almost knew that the market was going to crash. They sold out 2 months before the **** hit the fan!

Reply by JanetK_CA on 10/9/10 4:02am
Msg #356040

Yeah, most of the ones I saw were from World Savings. I remember being offered that in my early days as a signing agent when I refinanced. Thank goodness I stayed away!