ariesguy
join:2001-01-30
 ·Cox HSI
| reply to justin
Re: Stock Market Crashing...down 330 points right now
said by justin  :said by ariesguy :Friday saw a bunch of Countrywide layoffs. Don't know the exact numbers nationwide, but about 20 offices closed in California. People went in to work, couldn't log into their computers and were told to leave. Most expect Friday was just round one.. Obviously you work for countrywide.. I don't see any news on these layoffs, though. So you think the majority of your business was done in the last 12 months by offering low-doc 80%+ loan-to-value products? Do you know of cases where income was over-stated with knowledge of the mortgage officers to get past underwriting or was it more like "lah lah I can't hear you" when a customer said, kinda, nudge nudge, I don't really make this much.. It happened early Friday, they sent out a email in the afternoon regarding the layoffs, but didn't list any numbers. We should see news on this come Monday.
Last 12 months?? I'd say it's been like this for the last 5 years. Earlier this year you could get a 100% loan-to-value (LTV) reduced doc loan with a 700 Fico. No income verification, all that was required was someone at your office had to say you worked there or you provided a business license. 2 years same line of work. Only other stipulation was you were supposed to have 3 months of principle and interest... which you could get an exception for. We were doing reduced doc all the way down to 540 Ficos.. depending on the LTV. In most cases the borrowers probably didn't know what income was being stated. Overstated income is the norm, not the exception.
We've done so many self-emplyed, tip earners, multiple property owners with no income verification. You're talking legitimate debt-to-income ratios of 40-75%, when it should be around 30%. The world has no idea how many of these actually went through. I'd say in the last year our office did 80% reduced doc loans, some of which could've went full-doc, not many, but some. In our office I'd say 80% of the loans done in the last year were above 80% LTV, TONS at 100% LTV.
People that don't work in the industry have no idea how many people are upside-down in their homes, have zero equity or who's credit is so terrible they can't possibly get a loan anymore.. and they're going to adjust higher. Then forclose, driving up home supply, driving down home prices and sucking more people into the upside-down/no equity/foreclosure boat. It's an ugly cycle that's going to take some time to get through. And it's just starting.
Here's a very common scenario these days:
Loan Officer: "We can't refinance you because (insert reason)."
Borrower: Ok. I'll just foreclose. Thank you.
These people have accepted that they're going to foreclose. And they don't care. It's madness. |
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AmeritecTech
Change we can believe in, 1922
Premium
join:2002-09-06
Houston, TX | Also, 80/20s to get around PMI, right? |
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ariesguy
join:2001-01-30 | Of course 80/20! CW is a complete disaster. Up until a few weeks ago we were doing 2nd mortgages up to 100% LTV, cashout with no income documentation with a 660 Fico. |
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AmeritecTech
Change we can believe in, 1922
Premium
join:2002-09-06
Houston, TX
| reply to ariesguy
said by ariesguy :It happened early Friday, they sent out a email in the afternoon regarding the layoffs, but didn't list any numbers. We should see news on this come Monday. »money.cnn.com/2007/08/20/news/co···07082006
Bingo bango.
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"Independent thinkers tend to ALWAYS have someone Not agreeing with them. It's The non-thinkers that ALWAYS come in legions."
-John Callari |
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Dennis
Premium,Mod
join:2001-01-26
Algonquin, IL | Does this mean I won't have to watch "nobody can do what countrywide can" 500 times on TV now? God I hope so.... |
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AmeritecTech
Change we can believe in, 1922
Premium
join:2002-09-06
Houston, TX
1 edit | said by Dennis :Does this mean I won't have to watch "nobody can do what countrywide can" 500 times on TV now? God I hope so.... said by ariesguy :They keep spewing "We're going to gain market share since everyone else is folding.." Heh, maybe not.
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"Independent thinkers tend to ALWAYS have someone Not agreeing with them. It's The non-thinkers that ALWAYS come in legions."
-John Callari |
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Maccawolf
Premium
join:2001-02-20
Hillsdale, NJ | reply to Dennis
sorry to tell you this, but I've already seen it like 5 times today. |
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