This is sure to trigger your anger

September 5, 2007 by Leave a Comment

I just received this email:

Dear Mortgage Brokers,

This notice is to inform you that our 24 Hour Mortgage Trigger Database has recently been updated. This means that we are able to offer you data from either:

Equifax, Experian or Trans Union

Our leads come with:

FICO, Name, Address, Phone Number, Amount of Aggregated Revolving Debt, Mortgage Loan Amount, Lender Name, Loan to Value, Monthly Payment on Mortgage – Credit Cards – Automobile

We can target all 50 states by: County, Zipcode, Zipcode Radius, City & Major Metropolitan Area.

Response within 24 hours is required to guarantee this price.

Give me a call and I can have you setup to get leads the same day."

When  you visit their website (I’m not promoting here), they offer:

"… specific credit information on consumers based on actual credit records. This database covers 50 states and over 300 million people. From this database, selections can be made on credit score, amount of debt, late payments, mortgage type and monthly payments. This data is primarily used to identify individuals based on their current credit situation and purchase indicators."

If President Bush really wants to stop predatory lending , or as he said last week regarding Loan Originators “if you’ve been cheatin’ somebody, we’re gonna find you.”   Perhaps he could start by not allowing the major credit bureaus from reselling the (currently not so) private information of consumers.   

In the meantime, I highly encourage you to write to your elected officials to tell them to stop "trigger lists".   There is NOTHING good about this practice.

Filed Under: Credit Scores and Reporting, Identity Theft, Legislation, Predatory Lending

Twice rejected…the third try is a charm (or so I hope).

August 13, 2007 by Leave a Comment

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On Friday I received a friendly letter from DFI stating that my finger prints have been rejected for a second time!  Darn my fine prints.  I called them right away to see what I should do since I’ve all ready tried this twice unsuccessfully with Alliance.  The helpful person at DFI recommended that I go to the Washington State Patrol office in Olympia.   She assured me that if they could not obtain quality prints from me, DFI would accept WASP prints.

Img_5565_2So I hopped in my car and drove just over an hour today and visited the WASP Criminal Records Division to have my prints extracted.   What pros!

After that, I decided to head over to Tumwater to Washington State’s Department of Financial Institutions to personally hand over my fresh prints.   

Three hours later (of being on the road0…I’m back to work.  I couldn’t help but wonder if I was working at bank-mortgage company if I would have to do all of this since the law targets Loan Originators who are employed by Mortgage Brokers.   I know bank employees go though background checks but I don’t believe it includes finger-printing…oh well! 

I scheduled my Loan Originator exam for next month (Loan Originators who work for bank-mortgage companies do not have to take a state wide competency test, either).    I’ve heard that out of the 15,000 LO’s who have registered as Loan Originators in Washington State, less than 600 have taken the exam and a reported 9% of LOs have failed.   In order for a Loan Originator to retain their license, they must pass the exam before the end of 2007 or they cannot originate mortgages employed by a Mortgage Broker.

Filed Under: Legislation

Local Mortgage Fraud Exposed

May 16, 2007 by 2 Comments

Mpj031428300001 Last night I watched an investigative report on the local evening news about a loan originator who put the hard sell on two brothers to purchase 3 investment homes and now the brothers are having to sell their primary residence in order to try to make ends meet.   There was so much wrong to this story that it made my gut turn.

I’m glad that predatory loan originators are being exposed.   It’s truly unfortunate that for every one of these LOs, there’s an anxious, gullible borrower on the other end.   Here are just a few of the highlights from last nights story :

The LO grossly overstated the buyers income.   And according to the buyers, the signature on the loan application was not theirs.   Absolute fraud.

  1. The LO was the selling agent, loan originator and the seller (he transferred the property to a family member)…I’m assuming he was the listing agent, too? 
  2. The properties were horrible overpriced.   According to the report, the brothers bought a property for $605,000 and it’s only worth $400,000. 

The brothers state they were shocked at their new mortgage payments when they arrived.   Since the loan applications were forged, I’m assuming they had no idea what their payments would be.   

Simply googling the loan originators name shows that he has been banned recently from his former career as a stockbroker for "defrauding customers" and trying to "harass and intimidate" a securities investigator.

"He’s a great salesman, I’ll tell you that…and stupid me, and stupid us…for trusting someone with a silver tongue."

It is so important to carefully select the Mortgage Professional you will be working with.   This may not be an easy task, you’ll need to do some research.   The brothers in this story say that this loan originator is one of their friends!   

  1. Google the Loan Originators name.   What pops up from the search?
  2. Read the LOs blog.  You’d be surprised how you can get a "read" on a LO’s personality and lending style.
  3. Get referrals from your other people you respect.
  4. Get second opinions from other lenders or professionals (such as your CPA, CFP, etc.)

I also have an issue when selling agents are also the loan originator.   In my opinion, it’s too self serving and a green light for abuse.  The loan originator/real estate agent should only wear one hat during a transaction…not two.  This subject deserves a post on it’s own.   I wonder if this LO disclosed on the purchase and sale agreement the relationship to the seller?

If it seems too good to be true, it probably is.   Owning investment properties can be great.  I recommend dipping your toe into that pool slowly.   Jumping in with 3 homes (the brothers bought 2 condos and a house for investment) is a certain recipe for disaster when you do not have experience as a landlord.   Even if the LO was a decent lender, these were highly risky purchases. 

It will be interesting to see how this story unfolds.   My first post was about a local mortgage fraud case as well and I’m still waiting to see if this predatory loan originator was able to slither away.

DFI currently shows this LOs license as pending…which probably doesn’t indicate anything at this time since Loan Originators will not be able to take the test until June 1, 2007.   DFI is, however, in the process of background checks…so it will be interesting to follow this LOs career and to see if he will be able to continue working as Mortgage Broker or if he can find employment elsewhere in the lending industry that is not licensed by the State of Washington.

Filed Under: Legislation, Predatory Lending, Residential Purchase

The Fine Prints

May 4, 2007 by 1 Comment

Mpj041016200001Last Friday, I received a letter from DFI stating that my finger prints that were taken back in late November, were not readable for the FBI and Washington State Patrol background checks now required for Licensed Loan Originators (mortgage originators who do not work for banks or credit unions).   And…even though they’ve had the my prints for five months, I had 10 days to submit a new ones!

First thing on Monday morning, I drove to the credit reporting agency who originally performed the task to get a "do over".   An hour later, I wound up with one "electronic" set and two old fashioned "inked" sets.   Apparently I have very fine prints on my pads.

Hopefully these sets will work out for the FBI and WASP!   

What I learned is that even if your LO is licensed in Washington State, the background check may not be done.   Obviously, my fingerprint check is not and I do hold a license…DFI must be absolutely swamped!

The required test to retain a Washington State Loan Originator License will be available to take starting June 5, 2007 and will cost $52 and will consist of 100 questions.   Loan Originators have until December 31, 2007 to pass the test. 

In my estimation, the heads of unsavory loan originators have not began to roll yet (unless they have all ready fled to companies that are not required to be licensed).   The first phase would be the background checks (as I’m experiencing now) and the next big step is to actually pass the test so one can keep her license she’s had since the beginning of the year! 

I will continue to keep you posted of my licensing progress.

Filed Under: Legislation

Banks Don’t Play By The Same Rules

April 25, 2007 by 4 Comments

Thanks to the recent Supreme Court decision, it has been confirmed that mortgage originators who are employed by banks or their subsidiaries, can ignore state licensing requirements that other Mortgage Professionals are required to abide by.

Again…this is nothing new…just a confirmation.
   
Filed Under: Legislation

How Do You Find an Ethical Lender?

April 4, 2007 by 4 Comments

On Rain City Guide, there are often debates that will arise about measuring one’s ethics (usually referring to real estate agents or loan originators).   So how do you determine whether or not someone is indeed ethical?    You can have a Code of Ethics plastered all over your web site and at your office…but it really doesn’t mean squat unless you do what you say.   

Cmpssmall As a Certified Mortgage Planning Specialist, I am to adhere to their Code of Ethics or I will lose my CMPS designation.  This includes 11 Statements of Commitment and 8 Duties to the Client Codes of Conduct.  There are 10 other Codes of Conduct that apply toward fellow CMPS members and the CMPS Institute.   It’s pretty elaborate.

The Washington Association of Mortgage Brokers (WAMB), which I am a member of, also has a Code of Ethics.   WAMBs Code of Ethics are more "short and sweet" than those of CMPS.Campfire

The company I am employed by, Mortgage Master Service Corporation, has their philosophy and goals on our website.    And I was a Campfire Girl while in elementary school.  (Our troop was the Blue Bird Blue Stars).

Jillayne Schlicke recently did a post on Vacation Mortgage about a local mortgage company who has "ethics in their name" and touts ethics on their web page.  However, if you contact them about their "vacation mortgage" which is heavily advertised on the radio, instead of providing information about the mortgage and answering general program questions (I emailed on several occasions inquiring about their vacation mortgage), they want to run your credit and obtain all of your information information to make sure you’re considering the proper mortgage.   Hmmm…dangling a vacation from your mortgage payment, then refusing to explain the program so they can offer you a different program…sounds like bait and switch to me.   Hardly ethical in spite of all their efforts to promote being an ethical company. 

This is why I will always return to relying on referrals from three different sources of individuals whom you respect to select your Mortgage Professional.   Such as a friend, co-worker, neighbor, Certified Financial Planner, CPA or Real Estate Agent.  Preferably, one who has recently gone through a purchase or refinance transaction themselves. Lego_gsr_2 Your referrals have all ready been tested by those you trust.

Unfortunately, you’re not able to submit a Loan Originator to a polygraph test to determine if they’re straight shooters with your best intentions at heart.  And, you cannot follow them around 24-7 (legally) to see what types of decisions they make throughout the course of a day.   And although the new legislation to have loan originators who work for mortgage brokers licensed (banks such as Washington Mutual, Countrywide and Wells Fargo; and credit unions are excluded from this law) is a start, it’s still no guarantee of the the person’s moral fortitude.   At least unsavory LOs who work for brokers will have a license to lose (or, at least they will not be originating loans at a mortgage brokerage). 

One of my favorite examples of a "Code of Ethics" is from Les Schwab Tire Company.   They promote that they treat clients just like they would their own mother.  I browsed through their web site and could not find a posted Code of Ethics…but I guess this is, perhaps my point.   They do what they say, it’s not all talk or print.   Simple.   Funny, I think some of the best things are!

Filed Under: Financial Planning, Legislation, Mortgage, Predatory Lending

The Cart Before The Horse

February 22, 2007 by 2 Comments

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Note:  I was contacted by the fine folks at DFI with corrected information to this post regarding continuing education.   My corrections are either striked out or bold.

This week has been a bit crazy with mid-winter break…our three kids all have different break schedules so our family is home instead of vacationing somewhere.  This has provided me with a great opportunity to attend classes and seminars, which typically take a bit of coordinating with getting the kids to schools (they go to three different schools due to their ages).   

Anyhow, on Monday, I went to a seminar by Dustin Luther.   Dustin is the creator of Rain City Guide, a blog that I contribute to that has been a force in the Seattle Blogosphere for years.  This was actually my first time meeting Dustin!  And, the seminar was great.   I learned about Web 2.0–how the consumer is directing the web instead of the web attracting the consumer.  It was fascinating.  He is truly genuine.

Yesterday, I took my first clock hour course to retain my State of Washington Loan Originator License.   It kind of feels strange to take a course before passing an exam that is not yet available (hence the cart and horse photo…I was going for the cart before the horse…but it was taking too much time to find the right photo).   I am assuming I’ll pass the exam once it’s available (or I will be adding a post with a photo of egg on my face).   

The course is required for all Licensed Loan Originators during their first year of being licensed and is on ethics.   This one was taught by NAMB.   I wish it would have been an exam on ethics, instead this was a class or open discussion.   I typically do not attend "lender functions".   When I took the CMPS exam, I really enjoyed networking with the professionals who cared so much to fly from all over the nation to take the three day exam (25% did not pass the first test).   I was very proud to be a Loan Originator (or what ever title you wish to call me) in the company of those fellow lenders.   

At today’s class, I was fortunate to sit with two other fellows who I feel also have very high standards and ethics.   And I do believe overall, the room was filled with the same caliber of people who truly care about serving their client’s best interest before there own.  I mean, they are there spending their time BEFORE taking the exam.  (You must pass the exam to retain your license…you can re-take the exam for $125 a pop). the cost for the exam will be determined by the exam provider and is anticipated to be around $50 -$60.  DFI also recommends that BEFORE a loan originator spends their time and money on continuing education classes, they check DFI’s website to make sure the professional organization or individual course are approved for loan originators or mortgage brokers continuing education.

What was interesting to me is that when you survey a room full of people, ethics can become a bit blurry.  I left the four hour class with my certificate…I have one more class and an exam to go before all of the criteria is met to REALLY be a Licensed Loan Originator.

Filed Under: Financial Planning, Legislation, Mortgage

Update on Loan Originator Licensing

February 5, 2007 by Leave a Comment

Mpj039935000001DFI has announced that Loan Originators who submit the required forms for licensing can continue to do business as usual.  This is a change in the original plan of not allowing LOs to take loan applications if they did not submit their MU4 form, fingerprints and application to DFI prior to December 31, 2006.    DFI states "Because DFI continues to receive a large volume of applications and because that volume has an impact on DFI’s ability to quickly process the applications, DFI will now allow loan originators to continue originating loans after DFI has received a complete license application. "

Hmmm….so the LOs who could not follow instructions and submit their information by the deadline get a green light to go ahead anyhow?   I cannot imagine how many applications they still needs to wade through and how long the tardy LOs would be out of business (previous decision was that they could not complete a loan application until they received their license from DFI and that DFI would process applications in a first come, first serve basis).    

I hope this is not a trend with DFI.  Colorado’s similar new law has all ready banned 10 Loan Originators.   If Washington state has banned any LOs from this new law, I’m not aware of it.   Since I’ve covered this topic in previous post, I thought I should provide you with the current update.

Filed Under: Legislation, Mortgage
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