HELOC Account Closed
by: Brian.Brady on January 30, 2008 07:44:38 19 comments »
I don't quite know how to write this because I've never had to do it before. In 14 years of mortgage lending, I have never seen banks treat their good San Diego customers this way. As you probably know, many big banks and mortgage companies have
TERMINATED THE RELATIONSHIP
and closed the home equity lines of credit to San Diego County homeowners. Apparently, Countrywide did just that last week. They spun the whole thing as the "Preserving American Home Ownership" initiative but you and I know that the only homeownership they were saving was their employees'. I must admit, those banks and mortgage lenders did some pretty stupid stuff these past few years. They made loans to anyone who could fog a mirror based on the idea that home prices would skyrocket faster than a thermometer in the Arizona sun. Well, we all know that what goes up... comes down (and goes back up again) so you're probably in as much in shock as I was. Let's face it, the banks
PICKED UP THEIR MARBLES AND WENT HOME, LIKE SPOILED CHILDREN
At first, I was angry. You see, I live here in Solana Beach and many of my neighbors, with really good credit, had this happen to them. They all know me as "America's #1 Mortgage Broker" (at least that's what GOOGLE says about me) so they call me or grab me after Church to ask me all sorts of questions. Believe me, I didn't get home until 2PM this past Sunday; I was surrounded by
ANGRY HOMEOWNERS
Now, I'll admit that I suffer a bit from the Underdog complex (I always try to save the day). I went home after Church and started plotting about how I could help my neighbors. Then...it came to me! I remembered what one of my buddies in D.C. told me; Congress was planning to raise the limits on conventional loans to $650,000- No more jumbo loans with those outrageous rates ! I guess The Guvenator got President Bush's ear and convinced him that California would fall into the ocean if he didn't sign the bill. My buddy in D.C. told me to expect those new loan amounts between Valentine's Day and St. Patrick's Day so
RELIEF IS ON THE WAY
Remember, I don't trust those banks as far as I can throw them so I got really paranoid. I wondered if they would start to raise the interest rates, after Congress announced the new loan limits, so I got busier than a ride operator at the Del Mar Fair. I called all of my friends and neighbors and had them get their applications in TODAY! Those banks might have frozen their lines of credit but I'm ready to get them the cash they need at a REALLY LOW RATE when the new loan limits become law. As soon as President Bush signs this bill,
THE MORTGAGE COMPANIES WILL BE ALL JAMMED UP
so I want to be prepared. I figured that I'd be ready to submit all of my friends' loan packages. I called my appraiser and told him to get ready to go to work (he's about as busy as a vinyl record manufacturer) and he was delighted! I'm all caught up (I had to pull my wife out of retirement to help) so I'm ready to help more neighbors. I'll gladly try to help you if you're in a similar situation. I didn't get to be "America's #1 mortgage broker" (that's what GOOGLE calls me) by sitting around, waiting for the rest of the pack to catch on to my secrets and I'm not going to fight the crowd. Besides, when the President signs this bill into law the banks will get wise and start raising mortgage rates, again. My friends, neighbors, and clients won't have to worry because I'll be sitting on their loan packages and
LOCKING IN THE REALLY CHEAP MONEY BEFORE THE THUNDERING HERD.
So, you gotta act quick if you want to beat the banks at their own game! Like I said, I'm pretty caught up so I can handle another 15 or so loan packages. Call me today at 858-777-9751 and I'll try to help you get back at the banks for taking out their bad decisions on good people like you. Remember, I don't think we have a whole lot of time before the rest of the sheep in the mortgage industry follow the leader so you need to call today. You can always apply online and I'll call you within a few hours.
PS- My wife is pretty tired from all the work we've been doing. She's made me promise not to take on more than I can handle so I simply must limit the number of new clients to fifteen. I've been married close to ten years and I love her a lot so I'm not going to make her unhappy. You know how that goes, happy wives make happy husbands.
UPDATE: I'M GOING TO TAKE AWAY YOUR RISK
PPS- As you know, housing prices have fallen a bunch in San Diego County this past year. You're probably wondering if your appraisal will give you the value you need to get the loan you want. I can't predict the future but I do know how to ask my appraiser to check his numbers before he comes out. As I've said, he's not really busy so he has time to do the background work. I'm so confident that this will work, I'll make you a guarantee; If you call me and make a loan application before February 10, 2008, and I get the go ahead from the appraiser, I'll refund you your appraisal fee if the loan can't be funded...no questions asked.
Related Posts
Did Countrywide Freeze Home Equity in San Diego?
· http://www.homefinders.comGood job. You're smarter than the average bear.
I have never understood the American public's, and some real estate agents' fascination with Countrywide. Oh, I remember. It was the interest rates they got.
Mmmm. Where did that get them when Countrywide ran out of money to give away??? Now they can't refinance and can't sell. But, they got a good interest rate only loan in 2005.
Life goes on.
Permalink January 30, 2008 09:22:01 · http://seattlesurbanvillages.typepad.comIt's always a good idea to shut the barn door after your livelihood has left the barn, right? Because even if it does come back, you wouldn't want it return to the barn. No you've shut the door, locked it out, and apparently want it to go to your competitor (Brian Brady et al) and instead allow your business to dissolve into bankruptcy. Good business and smart move Countrywide!
Permalink January 30, 2008 12:25:13 · http://www.leaplending.comBrian,
You have an amazing command of the written language and how it applies to the well written blog. Best wishes as you tackle all those new non-jumbos and if it gets too much to handle (you don't want an unhappy wife), well, you know my phone number!
Lisa
Permalink January 30, 2008 12:43:50 · http://www.lifethatpops.wordpress.comBrian - you are way ahead of the curve... as usual. Great idea not waiting for the demand to push up rates at the bank. Get the packages in now and lock up the cheap money: basic supply and demand.
They spun the whole thing as the "Preserving American Home Ownership" initiative but you and I know that the only homeownership they were saving was their employees'
Too true, too true
Permalink January 30, 2008 15:33:18 · http://BeachcityRealEstateInfo.blogspot.comI never cease to be amazed by the lack of common sense displayed by most bankers.. I'm breathing a big sigh of relief that my buyers are in your hands...
Permalink January 30, 2008 16:53:38 · http://www.southbeachrealestateblog.comMan I was told this just two weeks ago in NYC. You're on it brotha.
Permalink January 30, 2008 21:23:54 · http://activerain.com/karlchristenWow....I hate it when I'm correct about this type of information. I've been telling these Mortgage Merge kool aid drinkers that their business model is depedent on shakey ground. So is it only Countrywide so far, I haven't heard of everyone following suit? Furthermore, Countrywide is already a mess, it won't be long before we've heard the last of CWB Wholesale and retail.
Permalink January 31, 2008 00:03:02 · http://anaconnell.comI'm not entirely surprised......what's happening is that even though rates have come down dramatically it will take these institutions years to make up their losses and the way they will do this(aside from foreign capital infusions and mergers) is charge us, the consumer, higher rates whenever they can.
Permalink January 31, 2008 09:25:18 · http://www.worldwidecredit.comGreat info Brian! You're timing is spot on, and your analysis of the forthcoming market is exactly how I see it too. Once the loan limits are written into law, there will be a perverbial rush on refinances. And mortgage brokers will get backed up, because mortgage brokers are a dimished breed after the past year of fall-out. Lets also remember this will be a temporary increase to the comforming limit....so its a simple supply and demand scenario. Millions of homeowners will try to capitalize on this window of opportunity. The name of the game for consumers with refinancing has always been, and still remains, get yourself into a position to strike upon the market quickly. In this way you can get the absolute best rates and fees, while others watch those lows go by as they scramble to get appraisals finished, title reports in, and underwriting approval. Get your applications in now! Good stuff Brian.
Ron
President and CEO, World Wide Credit Corporation
Permalink January 31, 2008 10:01:45 · http://agentgenius.comBrian, for more reasons than just always having a solution, you're brilliant.
Permalink January 31, 2008 11:11:18 · http://www.sandiegopreviews.comThanks for the heads up, Brian. Still trying to calculate the ramifications and the affected markets. Second homes and Gringo buyers of Mexican property come to mind first.
Permalink January 31, 2008 13:46:29 · http://www.ReneeBurrows.comI am not entirely surprised!! Good for you getting ready for your area's refi boom! Thank you for the update!
Permalink January 31, 2008 14:37:26 "...you and I know that the only homeownership they were saving was their employees'."
Surely you meant to say, "their shareholders'." All other personnel are expendable.
Permalink January 31, 2008 21:16:44 · http://LiveLakeForest.comBrian - I have a client with a $75K heloc through his credit union, and only $25K tapped. (The rate is prime minus .05%.) Would you recommend taking the remaining $50K and put it in a savings account at a different institution? That $50K availability line is his "rainy day" fund!
Permalink February 01, 2008 09:46:00 "I can't predict the future but I do know how to ask my appraiser to check his numbers before he comes out. As I've said, he's not really busy so he has time to do the background work. "
Comp checks are illegal. Asking opinion of value from an appraiser without ordering an appraisal is in violation of USPAP.
I'd love to hear how your appraiser is giving you a value without an appraisal. Please do go on.
Permalink February 02, 2008 03:08:16 · http://www.longbeachrealestatehome.com/And the U-First loans which are dependant on heloc's continue to be sold...........I smell a class action lawsuit on this one............
Permalink February 04, 2008 12:27:12 Wholly incorrect, Mikey. Asking an appraiser if you're "in the ballpark" is not the same influencing value. Nice try.
Permalink February 06, 2008 22:30:17 · http://www.brentlane.wordpress.comGood Article Brian! Nice to see that there are other Mortgage Professionals in the world. I think you may need to add some staff so you can close more than those 15 loans.
Permalink February 08, 2008 18:09:05 · http://themortgageinsider.netSay Brian,
Did San Diego values get in the way on half or more?
Just out of curiousity...and of course, without revealing any privileged info., how was the closing rate of these 'early appers'?
Did the new PMI guidelines announced in March cause you to switch over to FHA rather than Fannie/Freddie?
Have you even found a FNMA or FHA lender who will fund these loans at the higher new max loan amounts...(I haven't...)?
One lender speculated when they did start to offer them, the point add-on for the above 90% LTV would be 2%!
Thanks,
Rob
PS: I agree...asking an appraiser to toss out the impossible is not only legal...but your duty to your client demands not spending his money in vain.
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