Need Mortgage Stimulus?!
I never thought I’d live to see the United States in such a mess, needing a mortgage stimulus package. Are we positioned to become the next third world country? Everyone is talking about the stimulus mortgage package, mortgage stimulus plan, mortgage rate stimulus and the “magical” mortgage stimulus bill. It’s all over the news.
What is all of this economic mortgage stimulus and refinance mortgage stimulus going to do to keep people in their homes right now? Can Main Street really count on the federal government or their mortgage stimulus help? If so, where is the stimulus check?!
These mortgage crises, in my opinion, could have been avoided altogether. We know that GREED is the predominant factor that led to this economic ruin; but another culprit I don’t see many “industry” people pointing the finger at is ignorance.
No, I’m not talking about the consumer trying to get a mortgage or refinance a home loan. I’m not disregarding the role the consumer (mortgagee) played in all of this, I just figure that loosing the very roof over your head, and in some cases becoming homeless, is a big price to pay for their own ignorance and in some cases greed.
So no, I’m not referring to the consumers here. I’m talking about the untrained, uneducated, unknowledgeable loan officers, mortgage brokers, lenders, bankers, loan processors, underwriters … the entire list of “industry professionals” who help pave the way to the need for mortgage payment stimulus.
I could name names and give specifics as well as provide evidence to support my accusation of “industry ignorance” running from the top to the bottom of the banking food chain; from the smallest companies to the largest of companies, but no need because the damage has been already been done countrywide.
So now we are in great need of mortgage stimulus help. The economic stimulus package for mortgages may turn out to be a band-aid solution on a problem that requires stitches. Mortgage refinancing is good if you can get it. The stimulus is to include mortgage modification, but by the time the ink dries will anyone in need of mortgage stimulus help have anything to modify?
Will the stimulus plan work to lower mortgage rates on a jumbo mortgage or a second mortgage too? There has been a great deal of conversation surrounding FHA mortgage stimulus. What’s the VA doing for their people? Is there a plan in place for military mortgage stimulus? Let’s hope those that are talking the talk also know how to walk the walk. We need a new mortgage stimulus package that is a stimulus plan for mortgage reduction across the board.
There are of course other factors that led to our (US) current sad state of home loan affairs, but my pick for the first and second spots as the culprits that are bringing the HOUSE down, literally, are (1) Greed and (2) Ignorance.
The way I see it, greed created an explosion of mortgage loan sales. The industry was not staffed to handle the volume of business that pursued with low interest rates. The untrained and inexperienced were hired on all levels and were ill equipped to perform the tasks they were given to do.
I have interacted with large numbers of people on the ‘lending’ side of the table who I had to educate in order to transact business with that company/lender. Who knew I’d have to apply my “teaching” skills in the banking industry, not to mention training other mortgage loan companies employees for free! No wonder there are so many upside down mortgages and so many mortgage foreclosure cries for help.
My ‘teaching’ happened repeatedly from the loan processors, to underwriting, to the funders, appraisers, managers that I called in for assistance (with their own people) … on and on.
When trying to increase the staff at our company I ran into the same problem. The difference with us was if the applicant made it past the interview, background check and other hiring procedures that I implement and landed a desk, they had better have the know-how to do the mortgage loan work they said they could do.
Would you believe that in my office eight out of every ten people that applied, no matter what the position, lied on their resume, lied on their application, lied during their interview… lied, lied, lied! They could not do the very basics of the job they were trying to land. Do you think any of them know the mortgage stimulus rules or mortgage stimulus benefits? Of course not.
I made certain that all advertisements for each and every position clearly stated that there would be no on the job training and a minimum of three years mortgage loan verifiable experience was mandatory. I guess they figured if their cousin who worked in a pet shop got a job as a mortgage loan processor at one of the larger home loan companies they could get a job in the industry too; after all they were really good in math in school.
I even had one applicant tell me during his interview, after I caught him fibbing about his work experience and history, “I learn very fast.” I took a copy of the job ad from my desk drawer, circled “no on the job training … three years verifiable mortgage loan experience…” and slid it across the desk to him as I replied, “first you need to learn about mortgages.”
When the industry exploded with more home loan business, the powers that be didn’t tell their applicants to “learn how to read”, they hired them!
Lack of experience + lack of training/skill = ignorance. I addressed ignorance, my number two pick as culprit in our current mortgage mess, because we can do better next time. We can start doing better right now in this area. Educate, educate, educate.
But as for my number one pick as culprit, GREED… you tell me. And you thought refinancing under ‘normal’ circumstances was a difficult task. Now you need a stimulus plan and mortgage help.
Biography: Monica McKinney is a Mortgage Loan Strategist, licensed and certified in Real Estate and Mortgage Loan Brokering. Monica is also an Award Winning Writer and has just authored an exciting new mortgage approval guide, “Mortgage Approved!: Your Easy All-In-One Home Loan Kit, The ONLY Mortgage Approval Guide You’ll EVER Need”. This great approval guide book is filled with insider secrets, mortgage loan help and mortgage loan tools. Get more mortgage information from Monica. Click: Get Informed…Get A Mortgage