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October 11th, 2010 12:13 AM


Dear Friends,

Throughout the 28 years I've devoted in originating mortgage loans, the last two years has delivered moments of heartache and sadness. I say this, as many of our past clients have become true friends. For some, suffering has become inconsolable. My inability to help those during this financial meltdown has become a disappointment for me personally. Painful daily economic circumstances continue unabated while a sense of foreboding lingers for many. The journey of suffering with loss of income, employment or the loss of one's home is truly devastating. There are no words of comfort to be offered, as we have in our midst corrupt and inept administrators represented by government bureaucrats, members of Congress, banks and financial institutions feigning compassion - all eager to kick law abiding and hard working citizens from their homes. The contempt for these powerful interests has created a fomenting anger and distrust of these institutions which has elevated passions not witnessed for some time. The reversal of fortune for these conglomerates is fast approaching its denouement. 

The effects of this 'Great Recession' can be considered as the handiwork of government intervention by mandating banks and financial institutions to offer mortgage financing for those unable to qualify under previous underwriting guidelines. This philosophy was the catalyst which brought to fruition a concerted effort by powerful entities and influential individuals in government and business to develop a strategy where 'sub prime' mortgage loans could be offered to help overcome a disparity in home ownership. The consequences of these actions and promotions of untested mortgage products as devised by these interests, has created the financial mess we are currently suffering today.

In attempts to blame others for the 'sub prime' mess, these entities decided it would be best to blame mortgage brokers for the irregularities and the effects of their inept decisions. Certainly there is blame to go around. However, in as much as there are 'bad apples' in an orchard where greed is ultimately apparent, the Draconian measures devised by government and the banking interests to rectify corruption and greed in the mortgage industry, has made the financial health of this country much worse. The encroachment of government entities has had a profound and a questionable effect on the consumer. Rising prices for basic services, loss of competition, stringent underwriting guidelines devoid of common sense and slower closing times have interrupted the general disposition of purchase and refinance transactions.

While MoneyTeam has originated loans for the past 21 years, we have only submitted a handful of 'sub prime' mortgages to banks for loan approval. We always advised and cautioned our clients that fixed rate financing was the best option. As a small company unwilling to expand by inscrutable methods, we were safe to promote our prudent and sincere efforts. In so doing, we have formed long lasting relationships with our clients in order to garner future referrals. We've had our ups and downs through the years like so many small mortgage companies. We'd rather lose business than to advise someone to apply for a loan which could be considered detrimental in the long run.

With this introduction, the destruction of America's future for many has become self evident. A game of survival has now taken shape as filing of Chapter 13 bankruptcies to forestall a foreclosure leading to a sale date of one's home or the endless torment and ineptitude of financial institutions offering nonexistent loan modifications are now in full force. The latter of these circumstances, has become the newest disgrace orchestrated by a government insincere in its efforts to help those in need, while banks and financial institutions have become two bit actors in a farce feigning compassion in lofty attempts to reach their bottom line. A bottom line where profits are the driving force in all decisions, eliminating the pleas of homeowners from losing their properties due to a stubborn and obtrusive system of computerized debt calculations utterly meaningless in scope. These 2 forces have conspired either by chance or design to frustrate the homeowner by an endless barrage of paperwork and the elevation of incompetence levels to an art form, forcing those seeking help to quit altogether. 

Just a few days ago, my good friend I've known for over 25 years called my office seeking help in order to file a bankruptcy to save her home from foreclosure. My friend is 77 years of age, turning 78 in a few days. I had no inclination she was in this sort of trouble. After I spoke with her at length, I came to the realization the lender that has the 1st Trust Deed on her home did not tell the truth when a pre-approval for a loan modification was offered. This action would have enabled my friend to lower her monthly mortgage payments. She was struggling to make the payments and did so even though she was only 2 months behind. The lender reneged on the offer and abruptly decided it was in their best interest to begin foreclosure proceedings. The sale date scheduled for Wednesday, October 6th was postponed due to the bankruptcy filing. It pains me to no end that we have a system of thieves hellbent on kicking a 77 year old woman out of her home. This is a disgrace!

Before a foreclosure proceeding is recognized by the lender as inevitable, I've come across several of my clients seeking a loan modification so they could stay in their homes. I have had a few clients frustrated with the chronic request of paperwork, submitted as required, only to receive correspondence stating the documentation provided is out of date or missing. This prolongs the process as new requests for the same information is continually asked for. One of my clients has been subjected to this mode of underwriting every 45 days for the past 12 months. The same information is requested and provided immediately, without a decision on the merits of the facts or figures as reflected in the documentation. Everytime I would call for an update, I am either placed on hold, transferred to an operator or a befuddled agent. The script these financial institutions have given to their employees to memorize, inevitably directs their behavior. The response is never in doubt. "The case will be reviewed and a decision will be forthcoming anywhere from 60 to 90 days." This Oscar worthy performance from a 'boiler room' operation, can only be construed as the newest form of professionalism one can encounter, where incompetence has become the keyword for efficiency.

In the news this past week, Bank Of America has decided to end the filing of foreclosures in all 50 states. There are also other banks and financial institutions that have agreed to do the same. It is my understanding the main reason for this action is due in large part to massive documentation not being reviewed for accuracy by the bank employees when filing a foreclosure. The overwhelming backlog is creating a nightmare as homeowners are being evicted without the bank reviewing the legalities or the circumstances of each particular case. Title insurance companies are facing losses as errors are prevalent and the credibility of the entire loss mitigation departments of major banks are being pursued for investigation by 40 State Attorney Generals.

The American taxpayer has 'bailed out' the banks and in turn, these institutions are gratified to implement a production line of evicting homeowners without negotiations or a successful accommodation to modify one's loan. Karma or better said, biblical principles, have the inherent ability to balance things out, forcing large banking institutions to witness the effects of their disturbing tactics. The common sense approach is to have a MORATORIUM for a specified period of time to review all loan modifications, so all APPROVED owner occupied homeowners can stay in their homes without the threat of eviction.

While there are programs on television and seminars instructing participants of the numerous benefits in purchasing foreclosed properties, I would be cautious in pursuing this type of investment on moral grounds. While we are in a capitalist system and investors can appreciate the value these properties can offer as a windfall financial investment, the spirit of pain and suffering of a family's loss of their home, still permeates through the open spaces of the subject property. While this concept might be considered inappropriate or unusual, the loss of one's home after fighting the cruel endeavors of those eager to dispose a history of splendid familial memories and the prohibition of a home's inheritance to one's children, is by all accounts, a crime in which no dollar amount could ever offset the purchase of such a property for profit. Federal legislation is recommended to help end the abuse of wanton foreclosures, by adopting stringent guidelines and regulations in preventing evictions of property owners with the sincere desire to save their homes.

The blueprint of American values was sown through the desires of Scripture before Independence. We need to explore once again the basic principles in which this great nation was founded. This entire financial mess is revealing the substance of character in all of us. 

Thanks Again 


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Posted by Jesse Dorado on October 11th, 2010 12:13 AMPost a Comment

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