Real Estate Investing Forums

Real Estate Investing => Financing, Hard Money Lenders, Private Money => Topic started by: Investment Loans on January 25, 2006, 08:57:03 am

Title: 100% financing for NOO on the way out???
Post by: Investment Loans on January 25, 2006, 08:57:03 am
FYI,

The secondary market for high ltv 2nd mortgages may be dissolving.  I've had several lenders tell me they have disconitued their products.  Take a look at the email from one of them.





LOAN PROGRAM TO BE DISCONTINUED!

 

PLEASE SHARE WITH ALL IN YOUR OFFICE!

 

This applies to the following ONLY:

 

100% CLTV NOO 1-4 Family Transactions
100% CLTV OO 3-4 Family Transactions
 

 

 

The Mortgage Maker and ALT-A will discontinue allowing CLTVs of 100% as of February 24, 2006.

 

After 2/24/2006, the maximum allowed under the Mortgage Maker and ALT-A programs will be 90% CLTV for the above listed transactions.

 

Why?  

Lehman Brothers, parent company of Aurora, has found that there is no appetite for these types of loans on Wall Street.  The investors who normally buy our paper are no longer interested in this type of paper.  Every lender that sells their loans to Aurora/Lehman Brothers will be affected.

 

What do you need to do?

Lock your loans quickly!  If you are working with borrowers interested in 100%, get them off the fence!  You will be able to lock these loans until 5pm local time on 2/24.  I will not be able to grant any exceptions afterward.  Once your files are locked, lock extensions will not be granted
Title: Re:100% financing for NOO on the way out???
Post by: 4EEM on January 25, 2006, 09:29:36 am
There are still a number of investors like, Aegis, Credit Suisse and World Savings that are still not shying away from these type products.  The paper will never disappear things are just going back to normal.  Back in the day only a few lenders had these products and made thier investors a lot of money with them.  Rates droped and a large number of lenders jumped on the gravey train....Yawn.

Weak lenders, brokers and buyers are on their way out...that just means more for the strong. ;D
Title: Re:100% financing for NOO on the way out???
Post by: ShaunG on January 25, 2006, 10:27:45 am
Very good call.    8)
Title: Don't believe the hype
Post by: Lendinghand on January 25, 2006, 12:43:31 pm
Ben,

You should concentrate on the programs that are on the way in..

If you can't offer 100% financing NOO then you're list of lenders is slacking.  There are plenty of investors that still offer the product...

Although Lehman Brothers/ Aurora does take alot of high risk investment paper, they are not the only source of this type of risk.  The market is much larger than you ever imagined.

If you are relying on Lehman Brothers / Aurora to determine your loan products, then yes you will be affected..  however, as every bank goes through change there seems to always be another avenue, another lending insitution that will take on that risk...

Just remember, you don't have every lender at your disposal... although you may think you do.

I do like your propaganda here though.   It seems like you may need to switch mortgage companies again... if you're going to find more alternatives for the investment market.

This thread almost sounds like we are going to war.

Try thinking outside the box.
Title: Re:100% financing for NOO on the way out???
Post by: hammertime on January 25, 2006, 12:58:02 pm
Quote
do like your propaganda here though.  It seems like you may need to switch mortgage companies again... if you're going to find more alternatives for the investment market.

It seems like all He has done recently  is push propaganda and not back up statements that he makes.  

I believe that you work with the tools that you have.  If the quit doing a certian type of loans then move on to something or somebody else.  

Don't mislead clients/potential clients just to get the deal.  Be honest.  I believe I have created more lifetime clients with honesty than with telling them that I can do something that I can't.
Title: Re:100% financing for NOO on the way out???
Post by: Investment Loans on January 25, 2006, 01:00:32 pm
Jason,

Come'n little guy.  Just cuzzed ya moved states doesnt mean ya can lip off to people now, huh?

I've got plenty of lenders that will do 100%.  The post was made as a notice for the convenience of those that might be doing business with Aurora or it's megabrokers sending business to them.

With the stucture that Cartet has you'll never turn me over to the darkside.  Slow pay, state licensing issues to name a few.

War, hey?  Well, hope things are going well out in CA?  Where's my invite?

Title: Re:100% financing for NOO on the way out???
Post by: Lendinghand on January 25, 2006, 02:06:39 pm
Ben,

If you have plenty of lenders that will do 100%, then why are you advertising that your lender that offers the 100% program is going away?

As for Carteret, well we don't have slow pay.  We get paid as soon as the loan closes just like everybody else.  Unless, you violate RESPA.  Well, as you know, if you don't comply with RESPA, yes you will have problems getting paid..  maybe that's why you don't work for Carteret... We are very compliant with Lending Laws nationwide which does require attention to detail..

With respects to state licensing issues...  I'm not sure what you are talking about here.  We have over 2,000 loan officers working nationwide.  State Licensing issues?  In order to obtain state licenses, you must comply with state requirements..  Each state has there own set of governing laws setting a certain amount of education and a fee for licensing.  If you are aware of some sort of licensing issues within your own structure please let me know as we are unaware of what you are referring to.  

To our success.




Title: Re:100% financing for NOO on the way out???
Post by: Investment Loans on January 25, 2006, 02:13:34 pm
First,
I havent used Aurora in years.  Underwriting to shakey and a little slow. Like I said, I put it out there because it seemed like important info.

Second,
The information from Cartet came straight from your lips when I was looking to move my book of business and was confirmed by some of your previous coworkers and manager.  

Third,
I do have a little secret about licensing.  All States.  No licenses required.  Interested lil buddy?
Title: Re:100% financing for NOO on the way out???
Post by: Lendinghand on January 25, 2006, 02:17:58 pm
ok.  that's interesting.

Your little secret about nationwide licensing is one of fraud.  You as a loan officer have to be licensed individually in many states.  Check your state by state laws.  

So, are you telling me that you operate without state licensing?  Seems illegal.  that's why you're not working with Carteret.  We also have background checks.

Next thing you'll be telling me is that you don't have to have a realtors license either, but you can be a realtor nationwide.

Also, making up false statements isn't good either.
Title: Re:100% financing for NOO on the way out???
Post by: Investment Loans on January 25, 2006, 02:19:58 pm
Wrong brother,

You know I wouldnt lie to you.

Give me a call and I'll fill you in so you can appologize to me here on the board.
Title: Re:100% financing for NOO on the way out???
Post by: Investment Loans on January 25, 2006, 02:34:27 pm
What's up Mr. Chatty?

Foot in your mouth already!
Title: Re:100% financing for NOO on the way out???
Post by: Lendinghand on January 25, 2006, 02:36:21 pm
Naa,  I don't see any reason to carry on.  you do things illegally.  It's clear.

It comes down to simple ethics really.

On the third page of the application as you sign as the loan officer, loan originator, you are required to be properly licensed in the state from which you originate, you know that.

Unless you are acting as a bank, but then if you are brokering out the loan, you still need the proper licensing.  

Maybe you are just unclear of the state laws.
Title: Re:100% financing for NOO on the way out???
Post by: Investment Loans on January 25, 2006, 02:40:31 pm
Sorry ya feel that way but your ego's overshadowing the fact that somebody's offering to help you.

Take it how you want.  Your loss.

Title: Re:100% financing for NOO on the way out???
Post by: hammertime on January 25, 2006, 03:20:57 pm
Quote
If you have plenty of lenders that will do 100%, then why are you advertising that your lender that offers the 100% program is going away?

I would like to know the answer to that one my self.  Ben you started this debate on another thread.  You made statements that you were asked to verify/prove and have yet to respond to anyone.

http://www.reiclub.com/forums/index.php?board=26;action=display;threadid=10772 (http://www.reiclub.com/forums/index.php?board=26;action=display;threadid=10772)

When it comes to questioning ones credibility...I would expect you to be the last one throwing stones.
Title: Re:100% financing for NOO on the way out???
Post by: Investment Loans on January 25, 2006, 03:32:17 pm
Jason,

You're right on the money now bro.  Like I said, you should call about that bank thing.

And yes, you will appologize if you're man enough to admit you misunderstood the post or didnt have all the facts before you went libeling.  Our integrity and business ethics are all we have since most of us as brokers have access to the same programs and rates.  




Title: Re:100% financing for NOO on the way out???
Post by: Lendinghand on January 25, 2006, 03:47:59 pm
You seem somewhat confused.  You're not a banker.  You're a broker.

and you still need the proper licensing... if your name goes on the 1003...

the fact maybe that you work for a company whose structure is as a bank, but that is simply an illusion to the fact that you are actually brokering out your paper...

nontheless, you as an individual without the proper state licensing know that you are looping through laws to get around the requirements set by individual states...  

and this is exactly why state originating laws are getting more and more defined...

Are you not the loan officer / originator of the loan?  Are you not brokering to other banks?

and this is part of the very framework of why our residential mortgage industry is being attacked from individual states... they do not want people originating mortgage loans without the proper licensing... no matter how you cloud it.  

I don't make the laws.  the states do.  

either way... it's only a matter of time before you'll need to get the proper licensing to orginate...



Title: Re:100% financing for NOO on the way out???
Post by: Investment Loans on January 25, 2006, 03:54:29 pm
Enjoy the rest of your afternoon.

Title: Re:100% financing for NOO on the way out???
Post by: kofigene on January 25, 2006, 08:19:57 pm
I am looking for lenders that will offer 100% loans. Currently, the best rate I'm getting is a 3 year ARM for 7.5%.  Credit score is 725...any suggestions for lenders I should call?
Title: Re:100% financing for NOO on the way out???
Post by: MoneyLenderP on January 25, 2006, 10:52:57 pm
The individual does not have to be licensed. The company the individual works for must be license in any state in which you originate a loan.

There are some states that don't require licenses at all like SC and I believe there are a few others....
Title: Re:100% financing for NOO on the way out???
Post by: Lendinghand on January 25, 2006, 11:28:23 pm
Most states will allow you to broker under the company you work for without individual licenses, however, some still require individual licenses.

http://www.thomas-law.com/mtgbrokers.html

to name one: North Carolina

http://www.nccob.org/NCCOB/Mortgage/Default.htm

furthermore, as an example:

with respects to Global Mortgage...  I do not see Ben here.

https://www.nccob.org/online/LicenseView.aspx?CID=2349

therefore, I must presume that Ben cannot do business in North Carolina.. and therefore he is not licensed in all 50 states...

I rest my case.

Get Licensed.

Title: Re:100% financing for NOO on the way out???
Post by: hammertime on January 26, 2006, 08:21:04 am
I would like to know the answer to that one my self.  Ben you started this debate on another thread.  You made statements that you were asked to verify/prove and have yet to respond to anyone.

http://www.reiclub.com/forums/index.php?board=26;action=display;threadid=10772 (http://www.reiclub.com/forums/index.php?board=26;action=display;threadid=10772)

When it comes to questioning ones credibility...I would expect you to be the last one throwing stones.


Buehler....Buehler.....
Title: Re:100% financing for NOO on the way out???
Post by: 4EEM on January 26, 2006, 08:22:01 am
If you lock a rate today and don't go for the 3 year ARM....5 year ARM has better price.
Title: Re:100% financing for NOO on the way out???
Post by: mnkrouse on January 26, 2006, 08:49:05 am
Wow!I have been gone for a couple of days and it looks like nothing has changed.  

Ben is still spouting off about being the greatest thing since Toilet paper and continues to evade the questions asked of him.  Or if he does respond it is a redirect......much like my kid's do. ::)

Ben, I used to look forward to your responses as they provide beneficial information.  It seems like ever since MDhaas and others questioned you about the 100% financing issue on another post you have been avoiding/evading the question.  (You never did answer the question)

If you spoke in error then you spoke in error.  My goodness we all make mistakes.  But true professionals admit their mistakes and move on.

If you do in fact know of a lender then share the knowledge.  After all isn't that what this forum is for?  Helping others instead of just helping yourself? :-\
Title: Re:100% financing for NOO on the way out???
Post by: Investment Loans on January 26, 2006, 09:29:25 am
Some info I do hold to my self.  Like I said check with your AEs and do some research.  I consider this board assistance for investors, not for mortgage brokers.  There's plenty of loan officer boards you can research to discuss programs.

This original post was someting I thought should be made note of.  Jason is an old friend that used to live here and we worked together, so my comments directed to him were in good spirits but we agree to disagree about the things he is not clear on yet.

I never indirectly answered the question on the other post, just never answered.  My only reply was to that of the original poster who corresponded with me off the board.

Anyway, I know there are a handful of others here that know that 100% cash out is available and could back me up on this but may choose not to for the same reasons I do.  

Title: Re:100% financing for NOO on the way out???
Post by: hammertime on January 26, 2006, 10:06:30 am
 Now I can safely say that I have heard it all.

:ibs:

 :deal:
Title: Re:100% financing for NOO on the way out???
Post by: Mdhaas on January 26, 2006, 02:25:11 pm
Ha! Ha!     ::)

Obviously, Ben has difficulty with the whole "pay it forward" concept.
Title: Re:100% financing for NOO on the way out???
Post by: hammertime on January 27, 2006, 11:00:00 am
I do not know if the moderator's will allow this post.  I just had to get this off of my chest.

Quote
Obviously, Xxx has difficulty with the whole "pay it forward" concept

It would appear that you are right Mark!  It is sad to say, but based on the responses, it would appear that he is so uncomfortable with his ability to earn business that he throws bogus information out there just to get the phone to ring.  

You have to realize that there is a finite amount of people who read this site and if he told everyone his "secret" then he would lose those potential leads to others who are obviously, based on their posts, more concerned with assisting club members than building their personal lead base.

Although I have been a member for a brief period I like to read the past posts.  It is obvious that members such as yourself, 4EEM and ShaunG just to name a few of the many, are more than happy to give information.  I have never seen them come off as "catty" or selfish.  I thought that the purpose of this site was to freely promote information for the many members.  NOT doing it with the What's In It For Me attitude

It is to bad there are not more people in the world like that.

Sorry to vent.  It just makes me ill to see people act like they are better than you.

I love this site and the information source that it provides for us future Trump wannabees :)
Title: Re:100% financing for NOO on the way out???
Post by: the_rei_lender on January 27, 2006, 01:24:11 pm
I believe it is very important to find someone that is truthful, reliable, and very knowledgable about mortgages and stay with them. I have been using the same guy for years now.
Title: Re:100% financing for NOO on the way out???
Post by: 4EEM on January 27, 2006, 02:20:23 pm

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REIClub  |  Real Estate Investing  |  Financing, Hard Money Lenders, Credit, Qualifying (Moderators: $Cash$, carlittle, ccolelewis, kdhastedt, johnmichael, NancyChadwick, reoconsultants, tedjr, WilsonTaylor)  |  Topic: new investor looking for lender previous next  
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   Author   Topic: new investor looking for lender  (Read 275 times)  
 
olie


 Offline

Posts: 2




     new investor looking for lender
on: Fri. Jan 20, 2006, 11:01 AM    

--------------------------------------------------------------------------------
I have been researching real estate for a couple of years now.  I recently own a golf mgmt. co. and want to evolve into investing.  I have taken classes (JG Banks) and read literature and have a reliable RE agent sending me rehab properties.  I do comparables and discount analysis on the properties and have a few potential rehabs 30-40% below ARV.  I have a few pro.rehab specialist ready to go.  What I need is a lending source and some options.  Credit in the 730's.

property listed 92,000
ARV                145,000
loan desired      115,000  
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Mdhaas


 Online

Posts: 731




     Re:new investor looking for lender
Reply #1 on: Fri. Jan 20, 2006, 11:01 AM    

--------------------------------------------------------------------------------
Welcome Olie!  What area of the country are you in?  
 Report to moderator    

--------------------------------------------------------------------------------
Mark D. Haas
Sr. Loan Officer/Broker
Affordable Home Funding
Toll Free 877-723-4210
Taking Care of Customers......One at a Time.  
 
 
olie


 Offline

Posts: 2




     Re:new investor looking for lender
Reply #2 on: Fri. Jan 20, 2006, 02:01 PM    

--------------------------------------------------------------------------------
Hello Mark.

Thank you for the reply. I currently reside in St. Louis, Missouri.

Please feel free to email if you would like to discuss further options.  
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Investment Loans


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Gender:
Posts: 216




      Re:new investor looking for lender - NEW
Reply #3 on: Sat. Jan 21, 2006, 05:01 PM    

--------------------------------------------------------------------------------
Hi Olie,

I live in St. Louis. actually Wentzville.

Nice to see so many people from St. Louis are here on the board.  Our market is hot right now.

You have several choices. There are conventional rebab loans and hard money rehab loans.

I am sending you an email with different programs available.

Have you been able to find an agent,appraiser, and insurance agent to work with yet.  If not please let me know and I can make several introductions.  
 Report to moderator    

--------------------------------------------------------------------------------
To Our Success! Ben Carmona
Mortgage Planning Consultant, Specializing in Planning, Developing, and Managing Investment Portfolios * Rehabs * Multi Units * No Seasoning Refis * Hard Money, Lending in Most States
www.BenCarmona.com
314-914-6052  
 
 
smokeybare


 Offline

Posts: 3




    Re:new investor looking for lender - NEW
Reply #4 on: Wed. Jan 25, 2006, 08:01 PM    

--------------------------------------------------------------------------------
Ben,
Can you send that info Tennessee folk?

Much Success,
Mike  
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the_rei_lender


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Posts: 2




     Re:new investor looking for lender - NEW
Reply #5 on: Wed. Jan 25, 2006, 09:01 PM    

--------------------------------------------------------------------------------
I know a man in South Carolina (Licensed in all 50 states) that works for a direct lender who deals exclusively with investors. I personally have done a lot of business with him and when it comes to financing investment properties he is the man.  He will do CASH OUT INVESTMENT PROPERTY, TRUE NO SEASONING, NO DOC  
 
 
 
 
 
 
 
Title: Re:100% financing for NOO on the way out???
Post by: rbaxter on January 29, 2006, 11:40:45 am
Not to deviate from the theme of thrashing each other, but I heard that Aurora Alt-A will still go to 95% NOO.  Have any of you heard differently?  
Title: Re:100% financing for NOO on the way out???
Post by: Mdhaas on January 31, 2006, 08:05:13 am
I spoke with my AE yesterday and he was not aware of changes
Title: Re:100% financing for NOO on the way out???
Post by: wisconsin investor on February 01, 2006, 04:24:19 pm
too late, i just had one a few weeeks ago at Lehman (Aurora) and they turned it down even though it fit every single guideline.  something like, yes it fits all the guidelines but we just don't feel good about the loan and we have the right to not originate it.  i asked specifically why and they said investor had bbought one other property withn 12 months.

if you are at Lehman, Aurora or anyone who asells to Lehman start looking now for another home as soon as you can, even if the rep says "don't worry it's locked".


Title: Re:100% financing for NOO on the way out???
Post by: mnkrouse on February 08, 2006, 08:45:59 am
Was the name of this(these) "holy grail" lenders ever revealed?  I am looking for someone who can do 100% LTV  N/O/O, 620 mid.  I would appreciate any and all responses.
Title: Re:100% financing for NOO on the way out???
Post by: 4EEM on February 08, 2006, 09:06:23 am
 ;D

Can't reveal the name of the "Holy Grail" lenders lest the "Holy crusaders" call my office and chastise me about posting such valuable information.   ;)

If your a broker you can find them on the grapevine.  If your looking for this financing for one of your own deals there are many keepers of the secrect on this board.
Title: Re:100% financing for NOO on the way out???
Post by: Mdhaas on February 08, 2006, 09:35:09 am
Quote
Sir Lancelot: We were in the nick of time. You were in great peril.
Sir Galahad: I don't think I was.
Sir Lancelot: Yes, you were. You were in terrible peril.
Sir Galahad: Look, let me go back in there and face the peril.
Sir Lancelot: No, it's too perilous.
Sir Galahad: Look, it's my duty as a knight to sample as much peril as I can.
Sir Lancelot: No, we've got to find the Holy Grail. Come on.
Sir Galahad: Oh, let me have just a little bit of peril?
Sir Lancelot: No. It's unhealthy.
Sir Galahad: I bet you're gay.
Sir Lancelot: Am not.

Monty Python and the Holy Grail (1975)

Thought this was a great spot for a little "Holy Grail" humor.
Title: Re:100% financing for NOO on the way out???
Post by: Investment Loans on February 10, 2006, 01:50:43 pm
Brokers...you needed help...here ya go!
Investors...make sure your dealing with mortgage consultants that know their products and guidelines.  That's why many deals fail.

For all those who had access to The Holy Grail, be aware this product has been restructured as of 1/30/2006, effective 2/6/06.

Look under product announcements.

Anybody using Lancaster should also be aware that they have reduced all their NOO loans to 90% for reduced doc and have changed their seasoning requirements.

One other thing, anyone using ABC should be aware that they had major pricing adjustments awhile back to their Choice Expanded program.  Completey took themselves out of the market.  You won't want to quote your investor clients the wrong rates.

I recommend for all brokers to take at least 1 day a week reviewing over guidelines for new lenders and current lenders.  You guys would be amazed at what you can find.
Title: Re:100% financing for NOO on the way out???
Post by: hammertime on February 10, 2006, 02:01:21 pm
Quote
For all those who had access to The Holy Grail, be aware this product has been restructured as of 1/30/2006, effective 2/6/06.

Soooo you are saying that the once Holy Grail is no more?  That 100% financing is going the way of the 8 track tape?

By the way nice quote, Mark!   LOL