Mortgage Refinancing - Mortgage Brokers, Closing Shop Doors and Heading for 9 to 5’s At An Alarming Pace
The Mortgage Industry is changing at a rapid pace. As Lenders tighten up on their qualification and approval guidelines with respect to who is eligible for obtaining a mortgage loan and who is not eligible, many Mortgage Brokers are closing their doors. Lender guidlines and Mortgage Rates change on a daily basis. From one day to the next Mortgage Rates adjust slightly up and down as well as those approval guidelines for borrowers.During the last few years, the Real Estate Markets throughout the US, have been on fire. Rates have been at an all time low, and the guards at the Lenders gates have been asleep. This has allowed many who could never afford to purchase multimillion dollar homes, and those who more or less could never afford to purchase a home, slide right in with the help of a very knowledgeable guide. The Mortgage Broker.”Bad Credit, No Problem!, Bankruptcy, less than two years old, No Problem! We have a solution for you.” Many of us have heard these words or this kind of sales pitch carrying the same message. Mortgage programs became more friendly to those who would never have the opportunity to take a advantage of simple, modest, home ownership. The Adjustable Rate Mortgage products offered by Lenders took flight and gave birth to the Option Arm. This Mortgage Monster, in my very humble opinion, was given life solely for the purpose of major profits by some of our biggest mortgage lenders. The Option Arm, mortgage product, gave borrowers the option to choose the kind of payment they would make on a monthly basis. In most cases, four different payment options which left out some part of the traditional, P.I.T.I., monthly payment. I will not go into detail about this for it would take up much more time.However, with an Adjustable Rate Mortgage staying true to it very essence, “Adjustable”, it will, in time adjust.I called this kind of a mortgage product, being a Mortgage Pro for a few years, in my own terms, “THE FAKE MORTGAGE”. It allowed so many people to be tricked into a life style that could not be afforded by most under normal circumstances. The Option Arm sold borrowers the idea that they could pay half of there mortgage payment and do whatever with the money for the remainder half of the payment.This product sold like hot cakes opening up the doors wide for the local Mortgage Broker. The opportunity of a life time to serve more clients, to make lots and lots of money had finally come. Most Brokers took this opportunity to heart and introduced it to their client base. The Adjustable Rate Mortgage, the Option Arm products, began to spread like cancer, for lack of a better word, but it has performed like cancer cells multiplying around the US, began to spread.Many Mortgage Savvy individuals took caution including those Mortgage Brokers who decided to hold off on introducing these kind of product to their client base. It is a good thing that they made such a decision. The warning signs were everywhere. How could a couple earning and income of $100,000 per year afford the mortgage on a Million + dollar home, and live to leave such a property to their 3 children.Well, as a result of the selling of these kinds of product the foreclosure rate has shot up like a rocket. It continue to climb. These, “Fake Mortgages” have become real. They have began to adjust since the time of introduction and many of these borrowers are feeling the burn. A hot Real Estate Market has become,cold as Ice. The good thing about this bad thing is that, not only are the borrowers feeling the burn of loosing theirs homes, many of those who sold them these kinds of mortgage products are loosing their shirts, hats, and homes too.The Lenders are being investigated, as you watch your nightly news, on your flat screen monitors and television sets, in high definition, “I had to say it”, those who created these products giving it to those who peddled them, are all experiencing the burn. Your local Mortgage Broker is no longer your local Mortgage Broker because he has gotten out of town.He has his own problems to deal with and you will have to find some one else, that is if you have not lost your home in the midst of all of this mess. Stop by my blog, “THE RUCKER REPORT” We would love to see your comments on the subject of the Real Estate Market.Thanks for taking the time to read this One Mans opinion on Predatory Lending.Charles D. Rucker
