Lewis Poretz - - Maryland Mortgage Expert -

I have been dealing with a particular client, ( let's call him Mr Smith ), for a few months now. He seems to be the type that just loves to hear what he wants to hear and not thr true facts. Mr Smith wants to purchase a property and has very little money. He is looking in an area that is approved USDA. When I mentioned USDA, he told me his "mortgage buddy" told him those are terrible loans. I told him I could approve hin FHA but he would need 3.5% of HIS money in the deal. He said no problem he could get it. I asked where it was coming from and he said don't worry, he could come up with it. I told him the speech about souricng allowable gift funds and he said he could get it from his dad. Cool ----- by the way, mid score of 589 did not get approved VA but did FHA and fits USDA guides with a strong LOE..... he was away in Iraq on assignment when he had a few 30 day bumps.... no problem

This has been going back and forth with Mr Smith now for about three months. This guy was a refferal from a client i have done many loans for and many more for his friends and family he has sent my way. I get a panic call from this guy today --- i want to put a contract on a property but it has mold. HMMM... FHA - mold???? ok - Mr Smith still cannot produce a gift letter from his dad nor do i have any of dad's bank statements.... the dti is high but i got an approve/eligible FHA - BUT before I write a commitment letter i MUST see income docs and the gift letter.... don't all your realtors agree?????

Ok - I then get a call from the realtor.... she wants an approval letter on TWO different properties tonight in case one doesn't get accepted. Of course then she goes on to inquire about the inerest rate and the fact that she has been selling houses 20 + years and that she plans on having another lender review my good faith. Oh boy --- whatever, it's 2008 and I want to make friends with realtors :-) The demeaning language and questioning about my 15+ years experience in the mortgage lending business alerted my better judgement... and then it came --------

Ms. Realtor - BEFORE I issue you a commitment letter, I MUST see income docs and gift letter at the very least. Then I was floored......

I was told by this realtor that she didn't want a commitment letter only an approval letter..... ( is there really a difference???? ) She said have the letter state that none of these conditions have been validated but the credit was approved. And this letter was going to be submitted to the BANK that now owned the foreclosed property. She told me not to argue with her because she has been selling bank owned roperty for 20+ years.....

So here is the deal - she wants me to issue a loan approval, commitment, acceptance whatever letter without looking at the clients income or source of funds for down payment so my client that was referred to me can purchase a house that has mold........ she wanted to offer FULL price because it was a bank sale and did not want to ask for seller closing help...... and she did not like the idea of a USDA loan... ( she has never had any luck with them and didn't see the real benefit ) - FHA - monthly MI 3.5% money in the deal USDA - no monthly MI and 100% financing....

I told this realtor that we probably were not a good match for eachother and that I was NOT going to

issue anything resembling a commitment letter to her, the listing agent or even the BANK that owns the property.

I fired that real estate agent and am certain I will lose my client...... at least for now -

Any agents have any thoughts on this scenario? Would you want a loan commitment issued on a client that was about to place a contract on a house that was make believe?????

Maryland FHA Expert

Hey buddy, you know that line of credit you plan on using sometime in the future.... and about that 401K plan......

Some experts have stated recently -

the United States could be on the verge of a financial meltdown.

If you have not been in close contact with your financial advisor, go get a new one. If you haven't heard from your stockbroker recently, fire them. If your mortgage broker is not keeping you updated with the current lending landscape, replace them.

If you locked your rate in the past few days, congrats! If not, rates are still very low. It appears as if investors appetites are turning to stocks big time and the Mortgage Backed Securities Market ( this is what drives mortgage interest rates people, not the Fed ) are taking a bath. Some say the downward momentum will gain speed and possibly have double digit interest rates to contend with in the future.


TODAY more than ever, call your trusted advisors and ask questions! Seek High Quality Advice!!

It was really an amazing day that saw one of the biggest single day rate drops i have witnessed in a long, long time. At the very end of the day investors issued a change for the worse but regardless, it was a breakthrough day.

I am currently hearing two schools of thought regarding the short term future of mortgage rates. Many say a rate correction is simply days away and this was all nothing but media hype.

Others believe mortgage rates can grow legs and keep falling.

I am now certain of one thing. When consumers refinance their house and mortgage business limps out of it's coma and shows some signs of life, any signs of life - well, it is a beautiful thing. If the governments intention was to spur on mortgage activity they are off to a great start but the momentum must build in order to sustain. Give me a refinance boom to shock the economy our of the great depression it is in and you must throw the word genius around.

Let this rate drop become nothing but media hype and we could see consumers and business retreat back inside their shell for a long winter...... But as of today there is hope. This is just what the Dr. ordered.

Maryland Mortgage Expert

As I sit in the office tonight wondering if any other mortgage banker is still working at 5:30 on a Friday night the phone rings. A pleasant lady on the other end says "hello, I am calling for Lewis". I said this was me. She told me she was referred to my company by her good friends but she went with another local company that claimed to have the best rates in town, no closing fees, you guys know the story.

I have recieved these calls many times before but this one was different. My propects sweat voice turned to a quiver and she almost broke down on the phone. I felt her holding back her tears while she appologized to me. She was at the end of her rope. Apparently the other mortgage company had been working on her file a long time. I mean a long, long time.... I mean since March! I asked her why she was getting so upset and she said her loan officer told her she could no longer qualify for a 5.25% fixed rate 30 year loan.

I am getting good at playing psychiatrist lately so I ask a few questions, certain she is seconds away from losing her house. This lady was soo upset....... I asked what her credit score was and she said over 800..... I asked if she was self employed and sure enough she has been a W 2 employee at the same job 10 years.... I asked about assets? yep 75K in a TSP...... Value was not an issue as when she purchased two years ago she put over 20% down. I told her something had to be wrong...... By the way, the mortgage shop she had been working with for months has a pretty strong name in the area, i knew there had to be a catch.......

I took the loan app, pulled her credit, recieved the Retirement statement, W 2's and paystubs by fax and had an appraiser run comps. Pulled a caivers, assigned an FHA case number and walla.......... house gets appraised Saturday and loan got uploaded tonight....... appraisal will be done Monday.....

Want to know the problem with the deal? The broker shop is not FHA approved and it is a 95% cash out deal and Fannie / Freddie don't play that no more........ That's it! End of story..... I locked her rate at a smoking 30 year fixed rate and this bad boy is gonna close next week..... the loan had been with the other lender since March!!!!!!!!!!! Closing this deal will give me more enjoyment than any fee I could ever make....

PEOPLE!!!!!!!!! LISTEN UP!!!!! Stop with the lowest rate lender always gets the deal...... it never works out that way.... Get High Quality Advice when you are dealing with a mortgage transaction.......

Maryland FHA Expert

Listen up people ---- I am having a gas problem.....

I have been using a local propane company for the last several years. I have always noticed a quarterly propane bill that seemed very high but never paid much attention. Lately, I like most of you, have been scrutinizing all outgoing expenses. Seems as if my quarterly propane bill was $300+ each time and it appears as if I am paying duplicate bills all the time.

I call the propane company billing department and ask them why my bill is so high all the time. They said I am on a quarterly cycle to have the tank topped off. I told them the only thing the propane powers is a gas fireplace that gets used 12 - 16 weeks a year. They said I need it serviced and I probably have a gas leak. They serviced it, found no leak, charged me $250 and told me I did not have a gas leak. I got my next bill, $300+ again. In the summer time! They said it must be the pilot light. Whatever --- a pilot light burning $300+ of propane in 12 weeks? Ok... I turn off the pilot light!

I get my new bill this week. Damn if it wasn't $300+ again. I had enough. I called the billing department and told them come get the tank, they can have it back. They billing rep replied, with a noticable attitude, "no problem". She advised me of the early termination charge and the tank removal charge. And they would in addition prorate my next "fill up" and at that point my account would be terminated.

Someone tell me how to fix my gas problem????? I really do want to keep my fireplace but $1200 per year for one propane fireplace?? Is that normal?