Lewis Poretz - - Maryland Mortgage Expert -

I am mad as hell…..

Through all the years of taking loan applications I have heard many stories. It is not my business why people refinance but usually is to lower their monthly payment by consolidating debt. Regardless of why, I hear the stories during the loan application process. The story below from last week points the gun at why Banks must be Regulated. This is not a bashing. This is a true story that can be backed up with true proof.

We bail them out, but Banks continue to rape consumers.

I had a client last week that called about a loan. His name was Ben Dover. Hang with me, the names have been changed but this is a 100% real story and it is happening every day to millions of us. Mr Dover explained to me that he has somehow survived through this economic mess, paying all his bills on time and supporting his wife and kids, at the same time working endless days running his own business.

He is very proud he chooses not to bail on all his debt, his mortgages, his car payments and other obligations as he watches the growing number of Americans who have given up. He is a fighter! But something happened last week that prompted him to call me.

How does the Government allow this?

My client has clearly battled through adversity and has paid all the BS fees only to get his credit limit cut. Now if I remember correctly President Obama and friends claim that Bank of America is too big to let fail. So the government rescued them several times to the tune of billions of taxpayer dollars. And who is going to have to pay for these financial rescues? But the banks whose own clients have lend to rescue continue with these excessive charges and third world country interest rates. Maybe the movement in America should be to charge up all the available credit possible and then never pay the banks back. After all, what is good for the goose………….

You are one of our most valuable customers Mr Dover…

My client banks with one of the big boys – Bank of America. Matter of fact, he has several business accounts, personal accounts, a few credit cards and even a car loan with B of A. He went on to tell me how tight financially it became last year. Many bills were paid by credit card. Before long his debt accumulated. Surprisingly his business started generating more revenue. Ben Dover began paying down his debt.

Those Bank of America credit cards saved Ben Dover’s financial life. Sure he would call the bank when hit with $39 late fees and $39 over the limit fees. He argued the fact that the credit bureaus regard anything over 30 days as past due yet B of A states in their fine print that any payment received 1 day past the due date would trigger interest rate increases up to 31% APR. But Mr Dover took it like a man. Besides, he had no choice. He was on track to pay off all his debt even if it included hefty fees and unscrupulous interest rates.

Those rotten bastards – they should be shut down

As the story went on, Ben Dover became more enraged by the second. He told me that as he paid his credit cards with Bank of America down, the bank would cut his credit limit as well. That action not only eliminates any future life line he may need but it also lowers his credit score. And they did it in such a sneaky fashion. Bank of America cuts the credit limit to just dollars above the new balance. The new billing cycle comes and boom - $39 late fee and a $39 over the limit fee.

Corruption and greed within the banking system must be stopped!

Want that coveted fixed rate in the 4’s? Oh yeah – it’s still here, never really went away. But toss in any cash out pricing adjustments and loan to value adjustments and mix in a subpar by today’s lending standard credit score and you may find a refinance is counterproductive. Not many months ago a 580 credit score would qualify for a 100% stated income programs. Now the pricing hits start at – get this – scores under 740.

By the way, what's it like to suck on a hose connected to a toilet? How many more billions can we give and let this mess continue. Talk about 1 step forward and three steps backward.

Wait a minute; didn’t we all hear President Obama tell us loans were going to be plentiful? Fannie and Freddie, you know the guys the government had to take over and whose stocks are trading in the 30 cent range are stating that tighter credit standards are leading to better performing loans. No damn kidding! Loans today are underwritten to such tight standards every deal is odds on favorites to perform and not default.

The way I see it, Obama, the Fed and whoever else has a say in this mess are sending the message to refinance and buy houses to stimulate the economy. But they must be living with blinders on as every new guideline change makes it that much more difficult to qualify for a loan. Timing is everything if you are contemplating refinancing – especially if cash out is on your agenda.

Look at the program change Countrywide is rolling out. Typically others will follow. This will take refinancing options away from a big majority of consumers who are currently eligible but have yet to jump on the bandwagon.....

Below is a link to a post that after reading is downright frightening. It is a must read not just for all AR members but for everyone. Are you aware of what is happening in the world at this moment?

I have been an Active Rain member for a long time and many of you people even know me.

Do not skip over this link. You do not want to miss this information, regardless if you agree, it is a thought provoking and eye opening view on what is going on in the world right now! Below is a synopsis of what this message is all about. I personally know the author and the majority of the time he is dead on with his predictions. enjoy.............. please bring any comments back to this post as well.

http://www.deathoftime.com/2009/03/09/there-is-about-to-be-a-very-significant-change-in-headlines-around-the-world

I have just posted an article that is long, especially by blog standards, but important. I think we are about to see the global economic crisis morph into a global social/cultural/political crisis.This is not so much about my opinion but an objective analysis – in virtually every section of the world there are protests that are often growing into riots. The protests, regardless of the nation where they occur, share a single common denominator: it is the middle/working class protesting against governments they see as corrupt and an upper class they see as having exploited them – both are blamed for the economic situation. In this post, I assemble an iteration of events, along with pictures and videos that establish a clear pattern. The mainstream media, especially in the US, have missed this story almost entirely. But I do not think they will miss it for long – it’s becoming too loud and the protests that have been happening regularly elsewhere are starting in the US. There is more to come, as I also report in this post: a multi-city “March on Wall Street” scheduled for early April. London police are prepared for “a summer of rage.” Putin has warned Russians that he will react strongly if people use the economy as a reason to stage a “people’s revolution.” It’s chronicled country-by-country in my blog, from Latvia to China to Guadeloupe – it’s remarkable.

http://www.deathoftime.com/2009/03/09/there-is-about-to-be-a-very-significant-change-in-headlines-around-the-world

If my analysis is correct, I think the world is about to face a much bigger challenge than just an economic meltdown. I have allowed the facts to speak for themselves. If this is news to you and you think that it should be news to others, please forward the link to others, or post it on line, recommend it on facebook, link it on twitter, etc. Are we in denial about just how bad things are? See for yourself.

http://www.deathoftime.com/2009/03/09/there-is-about-to-be-a-very-significant-change-in-headlines-around-the-world

Let's get candid about a few things.....

Just how bad is it?

President Obama went on TV the other day and told Americans to jump back in the stock market. It seems as if he is on TV just about every day lately. And like clockwork when Obama tells the country things will be ok the stock market gains as if to jump with joy. Well guess what happened this time. The chairman of the Federal Reserve went on TV that same afternoon and stated, “Without a reasonable degree of financial stability, a sustainable recovery will not occur,” Bernanke further commented, “Although progress has been made on the financial front since last fall, more needs to be done.” He also added policy makers would have “preferred to avoid” what is likely to be the largest ratio of federal debt compared with gross domestic product since the end of World War II, and he urged lawmakers not to lose sight of fiscal discipline.

After multiple bailouts to AIG, Citi, Bank of America and others, I ask you in all seriousness – Ya think it’s gonna work? Even kids see what is going on and are asking why? Enough said……………

High Quality Advice - seek it now….

Leave the lowest rate to Lending Tree. In today’s mortgage market, you better know what you are doing. Will a program you qualify for now, a program that puts you in a better financial position, a program that makes sense even be available next week? Talk with an expert who fully understands today’s mortgage lending environment. Have your credit report reviewed once a year. Understand your options. And never forget – Cash is King! If you have to, hide some under your mattress.

Our sincere prayers and thoughts….

As a 15+ year mortgage vet, I have seen a few up and downs. But this time, the percentage of mortgage professionals that have left the business is staggering. Many hung on as long as they could, some too long. Many had great credit and families to support and are now in dire financial straits. Some of these people were my friends for the past 15+ years. As I have told colleagues over and over the past few months, we are not competitors any more - we are all in this together. We should be holding hands. Unfortunately, too many were victims of the industry. We are thinking of you guys and wishing you the best.