When Mortgages Made Sense

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  Posted By: sksforchange @ 12/26/2007 4:27:01 PM

  When I started in the mortgage industry 16 years ago, there was no automated underwriting systems! We did not have the MTA's, stated no income no asset loans. Credit Scores were not even a factor yet. We actually had to use our brains to put a loan together. It amazes me what has transpired and part of me feels like I have wasted all of these years. "Greed" has played a very large part in what has happened in our industry! I personally watched upper management get richer and richer! Their influence certainly did not help the situation. There are still some of us left that truly are in this business to make a difference! And yes most of our consumers do not have the financial savvy to know what they are getting into. Its a loan officers job to properly explain the procedure. To give them that warm and fuzzy feeling! Unfortunately, with the programs and products out their, the income potential a loan officer has, they just sell the most expensive loan they can with the most amount of premium in the rate. I posted here today to basically say, not all of us are greedy lenders, some of us actually love what we do and wish that things would get tightened up a bit. Those who truly are good at their jobs will make it through! Since 2006, 210 mortgage lenders have shut their doors! There will be many more to come and those who survive, hopefully will be the companies, the consumer can go to and get the TLC they deserve!

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  Posted By: besposlen @ 12/20/2007 12:51:03 PM

  The problem with buying houses for most of the Americans really is similar to their eating practices. Americans eat too much, and Americans also want huge houses. And the market and the builders follow that, adding some extra (for the extra cost, of course).
  In my family there are only three of us (parents with one child), so we don???t need a lot of space, especially since we were used to European standards. :) But, when we started looking to buy a house in the USA, we were very disappointed to find out that in new construction or in newer nice suburbs, only huge (2000 square feet and up) houses were available. It???s not that we could not afford that much, but it???s just a waste of money and a huge impact on the environment (think of all extra heating and cooling). We were fortunate to eventually find a nice new house of about 1400 sq.ft., but now it looks like we???ll have to move to a different state (job related), and I???m afraid we???ll have the same problem again.
  

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  Posted By: www.maxhouse.com @ 12/19/2007 6:09:20 PM

  The real problem is that most consumers don't have the financial savvy to know that they are being robbed by the mortgage companies. Even with a low 30 yr fixed rate, they will pay for the house 2 or 3 times in interest. We should be utilizing Mortgage Checking Accounts like Australians have been using for almost 20 years. Aussies save over $100,000 in mortgage interest and pay their homes off in 7-10 years by simply combining their checking accounts with their mortgage accounts. This would not only save new homebuyers, but many of those who are at risk of losing them in the next few years.