Jason Sardi, Mortgage Banker

I'm leaving tomorrow for the first family reunion we've had in quite sometime. I haven't seen my Mother's or Father's side of the family in years. I'm seeing them both over the weekend, provided that I make it there in once piece. The only reason I bring up that last sentence is because while I'm not driving, I hate highways and speed on four wheels. Call it my phobia, my version of Jeff Gordon's antagonist. Sorry if Mr. Gordon is an out of date reference, but I follow NASCAR about as much as Clay Aikens follows a female into the sack. Get the drift? Yup, kind of breezy...

Being one of the younger chaps in the fold, one of the common questions I'm expecting to answer is what I'm doing for a living these days. Am I doctor? Am I a lawyer? How about an Accountant:) Am I a world renowned proctologist? Am I teacher? Am I a preacher? Am I... no, I'm not. I'm now a Mortgage Banker. I used to be a Mortgage Broker.

~The collective sigh may just hush the room~

Most people don't know the difference, especially my folks and most of my relatives who haven't reached puberty in the past ten years. Bankers were the way to go. Respected and counted on. Enter the Mortgage Broker, which is now the maligned entity that did one heck of a job causing all this.

Like my intellect, I'll try to make this very short and sweet.

I won't pretend to sit here, type, and expound on what is the truth or what is not the truth. What I will do is share my experience since I entered this often heinous gig back in 2001. Mortgage brokers did some good for a lot of people in their existence and they aren't quite dead yet. Mortgage bankers have also done some good for a lot of people and their existence seems to be a tad bit more chronic.

Bankers & Brokers were never treated the same because at one point, Brokers held the proverbial Lion's Share of the Market. When the toilet starting turning brown, the brokers were the ones who were most easily flushed. The term "Banker" was and still is almost always thought of as more respected than "Broker".

I'm a Mortgage Banker, but I can tell you as a former Mortgage Broker, if/when they put those folks out of biz... options tend to end. While I'd rather not discuss my trade with my Aunt Lois who is turning 70-years old on a surprise birthday, it will be discussed. I just hope not to give her nor I a heart attack in the meantime.

Bottom line, what does this mean to you... the consumer? I don't like it. The question will remain, do you? I was forced out of the broker business which made me want to be a Kennedy with a similar liver. Yet, reality is what it is. Brokers aren't evil, people are. Guns don't kill people, people do. One man's Banker is another man's Pawn Shop. Gary Coleman doesn't sleep with your ex-wife to just churn out a sex-tape, his agents recommend it to prolong the career.

My guess is that people want more options, not less. Sure, there was and probably always be incompetence. But that very incompetence isn't because one is labeled a Banker or a Broker... it is because they may just be INCOMPETENT.

I rest my feelings and thinking on one final note. Every law that is passed should have the people in mind. But nevermind the people, it's now law. Well, I got a nice little link to sing the song that I can't sing...

just click here

My Aunt Lois turns seventy and I love her. I haven't seen her in years. With that, she'd probably like this song a tad bit more:)

While I'm a lousy salesman, I'll tell her what I know. I have a good heart and a bad taste. I'll stick around until they catch up with eachother.

~Sardi~

Times are present so we can remember them and maybe even learn from them. When there is no longer time, well, that's another discussion in of itself.

While I don't mean to be the master of the obvious over here, being in the lending industry isn't easy these days. The irony of all that, at least from my vantage point, is that I didn't make a significant mint when times were easy. But I'm still around. I'm either stubborn or stupid, perhaps both. Or maybe, just maybe, I belong here.

One client reminded me of that.

I no longer have their email on record, but when the appraisal of the house they were going to buy for $180,000 came in $50,000 less, I was introduced to an unique point of view:

And I'm paraphrasing, " Hoopla aside, I just want to buy a house to call my home."

I was sitting back and thinking about these things and I read what he wrote to me. That sentence spoke volumes.

Are we making this shit more complicated than it really has to be? Are we telling everybody else that declining markets, negative equity, stricter credit guidelines, and an influx of new business without the ability to service that very business are the wave of the present and the always near future? There are a few success stories along the way, but I'm not going to sit here being idle when a guy with a 780 credit score, plenty of money, can document his income, is a US citizen, and has watched at least one episode of "All in The Family", has the least bit of trouble buying a house.

The talk of the day in the lending industry hasn't been common sense, but a gut reaction to the age of absolute greed. Unfortunately for me, I missed that part. I could of had a deck, new roof, siding that would make the ass that is my neighbor jealous, and a bit of coin socked away just in case I encountered a near third degree burn on my right foot. It's funny how life works. It's even funnier how we work.

Let me try to end this with a bit of knowledge you may not find (or have being admitted) anywhere else. Us Loan Officers only get paid when we close loans. Sure, folks want loans cheap, at the lowest interest rate, with no points or fees... and I shop at Dollar General sometimes as well. Cheap lasagne burns quite well. But, my guess is that people don't give a damn of how we are paid... they just want to buy a house. They want to buy a structure they can call home. My plea is one that probably will fall on deaf ears, though those ears will go cauliflower before I'm done with them. If you want to fix the housing industry, listen to the folks who want to buy that house. Listen to the folks who are actually practicing the trade.

I won't get too political about this, but come here... closer. Let me whisper in your ear.

If you want to solve anything dealing with the Real Estate Industry, it's not a bad thing to actually consult the members in the field.

We can tell you that the guy above, with that credit score and monies, is a player. But he doesn't want to be a player, he just wants to buy a home.

I guess he wants a place to live and call his own, interesting concept.

Early last month, one of the loans I closed had two interesting variables:

• The client had contacted me via this site over a year ago, starting his plan to buy a home.
• I was introduced to a program that I wasn't astutely familiar with, The Philadelphia Home-Buy-Now Program.

After learning a bit more about it, I thought it was a pretty good idea. While I didn't know all the facts, some of the philosophies behind this program made perfect sense to me. The standpoint they come from is one that employees who are homeowners in the city where they work are more productive and are more akin to staying at their jobs for a longer term. They commute less, spend more time with their families, and even pollute less (I guess it must be that driving thing). All those points are laid out in some of the information I was perusing about The Philadelphia Home-Buy-Now Program.

Here's a brief breakdown of how it all works:

Step Numero Uno: A group of folks from the Program work with the employer and eventually the employees to create a customized program to suit everyone's needs. The Programs can be tailored for specific neighborhoods, to attract employees in specific professions, and to help match up the best and brightest employees and employers to help enhance the overall health of the community.

Step Two: When an employee of a company who is a part of the Philadelphia Home-Buy-Now Program sets out to buy a home, that person will be able to count on full support from the staff working with this public/private matching funds program. The employer can contribute as much as they'd like to their employee's purchase, and then the City of Brotherly Love will match the contribution up to $5,000.00! In certain cases, private developers will then provide additional matching funds up to $7500.00!! Those particular cases are dependent on the purchase of homes in select developments.

Step Three: That's pretty much it. With an employer's investment of just $5000.00, that may turn into a piece of change equaling $17,500 as an investment that will pay returns to the company, the employee, and of course, the very community of Philadelphia.

There are no income eligibility limits to obtain City matching funds.

Here's a brief list of Philadelphia employers already on board:

Citizens Bank ~ Temple University

Episcopal Community Services ~ Fannie Mae

Germantown Friends School ~ Keystone Mercy Health Plan

NewCourtland Elder Services ~ Saint Joseph's University

University of the Sciences ~ University of Pennsylvania

Some of the areas where homes have been purchased through this program since its implementation in the Fall of 2004 are Chestnut Hill, Fern Rock, Germantown, North Philadelphia, Oak Lane East, West Mount Airy, and West Coast Lane.

So any potential Homebuyers, Sellers, Realtors, & Employers in the Philadelphia area may want to check this thing out. Being on the lending side of the transaction that closed last month with this program, I can tell you that the process was pretty streamlined.

For More Information, Visit www.empowermentzone.org/hbn or contact Jim Flaherty at jim.flaherty@phila.gov

Jason Sardi

Mortgage Consultant

610-653-0317

jsardi@ihmci.com

Before I attempt to answer that question, interested readers should know something. I am a loan officer by trade. That's what they call us. I don't particularly like that title, but what's in a name?

I don't get paid an hourly wage or a salary. If I don't close loans, I don't make a dime. If I don't make a dime, that means I can't eat, drink, or even sleep if I can't afford to make my mortgage payments. That's not a sales pitch, that's a reality. It's in my best interests to close every loan that comes under my wing. While there are ethics involved to ensure you are doing your client right, if I can offer and do a loan for you that puts you in a better financial situation, I want to close your loan as fast as possible. It's not only in your best interest, but mine as well.

So why is it taking so freaking long? Good question. Here's a few observations on my behalf:

• More volume with less 'able and willing' people to deal with it. Let's be honest here (I love that line:), the mortgage industry isn't exactly the most attractive line of work to get into now. To boot, a whole lot have left it. I'm still here because I'm stubborn and good at what I do. Plus, I believe you have to go through hell to get to heaven. Call me selfish, but I think my time here will work out very well in the end. Even if it doesn't, Economics 101 has us dishing out the phrase, "Too much demand and little in the way of Supply."
• Front-end incompetence. If you are searching for a pre-approval from a lender, get the appropriate documents in order before you ever even fill out an application. If they don't ask you for such documents, they may have more ties than me. Either that, or the final result won't be what they promised. Do yourself a favor, get your W-2's, pay-stubs, bank statements, etc, in order. If your loan officer doesn't ask for it immediately, ask them why they don't need them. That will put a spark up their ass.
• Changes. This is a tough one. It's hard to tell someone who is a completely competent borrower, why the area they are in or the house they chose isn't on the "I love to lend in" realm. The only real advice I have on this one is if you are dealing with someone you trust, they will get you through the current bullshit that is going on.
• They just don't like you. Well, we live in a society where that is not acceptable. Folks actually look at your loan, but you aren't nearly as personal to them as you would like. I work for a relatively small company and see that. I can only imagine what working for a large one would entail. Work with an individual that you trust, that you can reach out to and at least communicate with. There is a common thing with that, you both share the same self-interests. He/She gets paid only if your loan closes. You only get what you desired after paying for an appraisal, maybe an inspection or two, and actually being able to be comfortable within the confines of a few walls that aren't labeled as "Prison".
• The Government. Now, I really don't want to wax political or get involved in any sort of debate about policy, parties, or general ideology. But I already have since mentioning this. We don't need the Government in this Private Sector. We didn't need them back then; we don't need them now. Those of us (I include myself because frankly, this is my business) who know the Real Estate Industry also know how it is to be corrected. Let's demonstrate how we will make sure such an extreme reaction to market won't happen again. It's a cycle, learn to ride.

We'll reach those Golden Years, but it takes work and patience. Why is it taking so long for your loan to close? Because this ain't a pay-day loan, this is a roof over your head. Maybe this is the opposite extreme of giving everyone with a pulse a mortgage, yet you know what they I say about extremes... "They are to be avoided."

AFTER soaking in the smells and sounds of New York City yesterday, Jennifer and I arrived home. For me, I was just relieved to get out of the freaking car. You see, me and highways don't get along too well. In fact, even being on the highway gives me more anxiety than watching a Dustin Diamond sex tape. I digress, though.

WE hadn't been to our local watering hole for quite some time. So we ventured out into the beautiful weather of Allentown and walked over to Stahley's. When we arrived, the first person to greet me was John, one of the owners and bartenders. In a deep, raspy, Randy "Macho" Man-style voice, he asked me, "Hey J, what's the interest rate?"

HAD I not been friendly with Mr. John, I would have been a smart alleck and replied, "8% with three points and a blood sample" just to make things interesting. But I told him.

DINNER and drinks were had and I got to thinking. Drinking and thinking don't always go hand in hand, but things were a bit different in this case. A lot of us in the Mortgage Industry despise the "rate question" because, well, for a lot reasons. The factors that go into determining what interest rate you will be paying are plenty. I've even written in the past that it isn't the wisest of questions to ask from the get go. I had a sort of epiphany, actually more like a quasi-epiphany, but it was an epiphany. For the record, I think that is the only time I've used the word "epiphany" three times in one sentence. Anyway, when John asked me that question I actually considered it a good thing. But why?

I have been in this business eight years. They have been eight very interesting years. Highs, lows, and a whole bunch in between. One of the most sage pieces of wisdom ever dispensed to me was, "Make everyone aware of what you do for a living." John is aware. In fact, another bartender there came up to me and we waxed intellectual about the housing industry in general, the economy, and women's lingerie. Okay, so the latter didn't happen. Walls of words need a few sentences of interest if they are to be read in their entirety:)

"FELL" is a curious term, at least to me when talking about being in love with what you do. But I have. I really love what I do and I find myself more than willing to talk about it every chance I get. It hasn't always been the easiest living in the world, yet I could be a taxi driver in New York City. That would be interesting. If you know me, imagine me driving a cab in New York City. That could turn into one heck of a reality series. I probably wouldn't be around long enough to reap the rewards though, as heart attacks tend to be bad for one's health.

IN living this life, there are reminders. John's question was a reminder to me and maybe for some folks reading. Never be afraid to let folks know what you do for a living.

LOVE seems to be the opposite of hate. I've loved my job and hated my job. I'm pretty sure all of us have felt that way. But I love my job just enough to never be afraid to spout what I do to the masses. Last night I handed out my business cards like they were Philly Cheese Steaks at the Eagles opener. John is buying a house before the Tax Credit goes bye-bye. I wonder who he is going to call.

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About the author: Jason Sardi loathes driving. Jason also isn't the biggest fan of driving and will fight to the death in ever stepping foot in a car whose destination is the Autobahn. But Jason Sardi loves the Mortgage Biz and is more than willing to help and educate to the best of his ability. His area of service include PA, NJ, NY, CT, DE, MD, VA, SC, FL, MI and IN. Mr. Sardi can be reached toll free at 1-866-262-8720 ext. 229 or on his cell at 610-653-0317. If email suits your soul, contact at jsardi@ihmci.com.

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By the way, if you mention this blog and I close your loan, drinks are on me at Stahley's. Germany is out;)