TEAMBLOG

Dear Friends,

In continuation of the previous TEAMBLOG in where we discuss the avenues of incoherence by our current members of Congress, we are now at a crossroads. By a vote of 45 to 19, Chairman Representative Barney Frank and the Committee has approved the wording of HR BILL 3915 and it will go to the full House next week.

We welcome REFORM, however it is our understanding the Bill has been composed or written in such a way it will eliminate choice & ultimately increase costs and fees to the consumer. Moreover, the measures in the Bill seeks to enforce and/or change the manner of compensation awarded to a mortgage broker by eliminating the YSP or the Yield Spread Premium altogether. This would force mortgage brokers to go out of business & will eventually harm consumers as these YSP's are rebates that can lower costs and fees for all mortgage transactions.

As written today, this legislation must be stopped as the economic consequences for the future of this country will become catatastrophic.

THESE ARE THE CONSEQUENCES

As mentioned earlier, mortgage brokers and mortgage companies will go out of business due to the drastic steps outlined in the Bill. Compensation of a YSP or Yield Spread Premium, will no longer be offered. (Please review previous TEAMBLOG).

The choice of loan programs will be curtailed. Borrowers will no longer be able to apply for the following type loans:

STATED INCOME - VERIFIED ASSETS 

NO POINT LOANS

NO FEE LOANS

PROHIBIT THE USE OF 'BUYING DOWN' THE MORTGAGE RATE WITH ADDITIONAL FEES OR POINTS

PROHIBIT ALT-A LENDING FOR BORROWERS WITH CREDIT PROBLEMS

ALL BORROWERS BUYING OR REFINANCING THEIR HOME MUST PROVIDE 1040'S, W2'S, PAY CHECK STUBS, VOE'S - ENDLESS DOCUMENTATION

PROHIBIT ALL ARMS - ADJUSTABLE LOANS

PROHIBIT ALL INTEREST ONLY LOANS

All of these particulars are just a few of the strict guidelines Congress wants to enforce.

The havoc this legislation will create is tantamount to the beginnings of a DEPRESSION.

Most persons work hard, pay their bills and would like to own a home. Owning a home is a part of the 'American Dream'. Due to the meddling of Congress in other economic situations, the type, the quality and the pay of the jobs we have today are grossly inferior from decades past. These actions by previous Administrations and politicians in Congress, has slowly and erratically created the abuses in the sub-prime mortgage industry and the avalanche of foreclosures we have today.

By deciding to eliminate the ability of Americans to choose a specific loan product, the passage of this Bill will create additional problems in the economy and the mortgage industry.

How can someone buy a house if their self-employed?

Most income generated by self-employed persons are deducted. How can a business owner be approved for a loan with tax returns that show minimal income, if any?

What about income from wage earners?

How can someone buy a house if they're a Teacher, a Gardener, a Librarian, a Social Worker, a Waiter, a Waitress, a Cook, a Flight Attendant or a Taxi Driver? They too should be afforded the opportunity to seek the 'American Dream' of home ownership. This Bill in Congress will end this chance for a family to purchase a home as there will be no mortgage available to help them qualify.

If most of the population is unable to Refinance or Purchase a Home, what will happen to the American economy?

A DEPRESSION is the ultimate course.

This might be a 'gloom & doom' scenario, but the housing industry has activated the economy this decade. With homeowners losing their homes, unable to refinance or purchase due to the extreme underwriting measures Congress will impose with this Bill and the elimination of construction jobs, the downturn in furniture & appliance purchases and other byproducts for the home, the problem will strangle America.

Like Howard Beale in the movie 'Network', this country is being controlled by interests bent on destroying the good will of its citizens. The money being spent by lobbyists is astounding! The power the Congress of any political persuasion has, is being used to terminate the businesses of good, honest and decent people.                   

                           ***

After 18 years of business, our beloved company, MoneyTeam, will cease to exist because men of questionable backgrounds have decided to use power without debate, to be involved with an industry they know nothing about and are compelled to solve a problem which they had a hand in creating.

                           ***

There is no need for the termination of the mortgage broker business. Of course there were abuses and reform is necessary, but the elimination of our livelihood without thoughtful debate is a persecution of American ideals and freedom.

Common sense is no longer a hallmark once displayed proudly by our Founding Fathers and previous generations. The bunch of politicians we have in Washington today are a disgrace.

Please click below & get MAD!

Howard Beale Tells The Truth!

www.americanrhetoric.com/MovieSpeeches/moviespeechnetwork2.html

Thanks Again

Dear Friends,

This year we thank our family and friends for their support and understanding of ones' plight during the past year.

Loss

In Southern California, many homeowners lost their homes to the wildfires. Across the nation many property owners lost their homes through foreclosure. While other family members lost their loved ones in battle in Iraq. And here at home, there are families mourning the loss of a friend or family member due to violence on the streets. Another occurrence which threatens the stability of ones' family occurs through the loss of a job.

Hope

The suffering and turmoil we feel through these sad circumstances gives us choices in our response to such tragedies. We hope to become a stronger person by finding strength and the ability to move forward. We seek reassurance in our attempts to understand situations which we have no control.

Thanksgiving is a time to heal. A time in which we are thankful for what we have. For many its a roof over ones' head, good health, splendid friends and most importantly, a loving family.

Our thoughts and prayers are genuine during this time of loss. Looking to the future, many of us, will indeed, forge ahead and this season will certainly come to pass.

MoneyTeam wishes you, your family and friends a Happy Thanksgiving, as we truly have much to be thankful for.

Thanks Again

Dear Friends,

A victory of sorts has occurred in the debate of HR Bill 3915. The legislation was passed by the House 291- 217 and its measures were modified, allowing the YSP or Yield Spread Premium to stay intact. This in essence will allow the continuation of our mortgage industry as the YSP is a form of compensation for mortgage brokers. Additional reforms in the Bill will provide effective & mandatory applications to help end abuses. Most importantly, the consumer will benefit from several measures passed in the Bill.

Nevertheless, there is troubling and confusing verbiage in the Bill as passed which needs to be modified. This includes the concept that lenders are responsible for knowing whether borrowers can actually pay back their loans. If a borrower was unable to pay for a mortgage due to illness, job loss, divorce or other factors, is the lender responsible for these occurrences? And if the borrower misled the bank by stating a higher income on the application, can the lender be sued for this activity? This logic will prevent many persons from purchasing a home if written into law.

Self-employed individuals and other borrowers unable to provide documentation to prove income, would be prohibited from qualifying to purchase or refinance a home. STATED INCOME type loans which benefit business owners and low income borrowers, will no longer be provided, thereby eliminating the ability for these borrowers to pursue the 'American Dream' of home ownership. 

Please see the results by visiting the National Association Of Mortgage Brokers website - www.namb.org.

Nonetheless, we are grateful for this first step. Our understanding is the drafters of the Bill under MA Rep. Barney Frank, with the help of the NAMB, were able to secure a compromise in several measures, where all players in this effort ceded to a modicum of common sense. There's still much work to do in the Senate.

Thanks Again

Dear Friends,

MoneyTeam is havings its BIG SALE beginning on Tuesday, November 27th and ending on January 7th, 2008 for all previous clients.

This SALE will lower all fees on loan originations during this period. With declining mortgage rates, NOW might be the best time to refinance your current adjustable to a fixed rate loan.

Check your mail for this spectacular sale where you will save hundreds of dollars!

Thanks Again

Dear Friends,

Last weekend I had the time to view one of my favorite films, NETWORK. This film presents the viewer with thought provoking concepts in regards to television journalism. Since the premiere of this film in 1976, the plotlines of the outageous events portrayed by the characters, has become a common occurrence in our daily lives in 2007.

Television news has become a form of entertainment where the 'newsreader' has become celebrity. Tabloid journalism has become an acceptable device in obtaining private details of previously agreed upon confidential understandings by the main subjects involved. The enticement and the ultimate payments of large sums of money by these companies to abrogate the mutual respect these parties once had, is truly a detriment to our society and the usurpation of its culture in general.

Money corrupts in many ways. The  chronic lure of money and material possessions has created a maelstrom of disturbed inanimate associations with others that lack value, decency and respect.

Power also corrupts and can be used haphazardly without thought of its current or future consequences. Power over others is an elixir that drives many mediocre stalwarts of incompetence to heights bordering on delusion.

With a great cast of characters, William Holden, Peter Finch, Faye Dunaway, Robert Duvall among others, this film tells a story of a veteran television news anchor about to be fired for low ratings. The denouement of this story is the basis for its conflagration.

In some respects, the frustration the main protagonist in the film Howard Beale presents, is the assertion that our lives are devoid of value & others amongst us possess an omnipotent power destroying the character and quality of our existance.

When Howard Beale rose up from his seat in the news studio and passionately uttered "I'm As Mad As Hell & I'm Not Going To Take This Anymore!" in front of a live audience, the energetic forces of reason and common sense were heard!

This film is like art imitating life or the other way around. We are witnessing the unraveling of Western civilization by its denigration of common values and the debasement of common sense. 

Now, how does all of this philosophy of the human condition tie into the mortgage industry, you might ask?

Well for starters, Bill HR 3915 will be voted in committee this coming Tuesday in the House Of Representatives. If approved, this legislation will go to the full House for a vote.

IF this Bill is approved by the House - IF later ratified by the Senate - IF signed by President Bush - MoneyTeam - like other mortgage companies and brokers throughout America, will go out of business.

These are several BIG IFS.

Unfortunately, the climate has changed in Washington as Congress in its eagerness to end the mortgage sub-prime debacle of recent months, has decided to use Draconian, unwise methods to legislate a problem which was created by all of us. The mortgage mess was created by everyone involved in a financial transaction. To some degree all of us in this cast of characters are at fault, including Congress. Yes, Congress has responsibility in this too. The passage of ill conceived financial legislation throughout the years has culminated in the crash of the mortgage industry and the proliferation of foreclosures in this country.

However, the sponsors of this Bill, HR 3915 think differently.

Congressional members, spearheaded by Congressman Barney Frank, the Ranking Member of the House Committee On Financial Services, believe mortgage brokers in particular were the originators of the sub-prime mortgage mess and must be eliminated.

This Bill outlines the steps in which mortgage brokers and/or companies are to be compensated. Also additional regulations in regards to licensing of mortgage brokers is included in the legislation. The alternatives in this Bill suggest the elimination of the YSP or the Yield Spread Premium whereby a mortgage broker receives a percentage of compensation for its services rendered. Most mortgage brokers receive a YSP. This 'rebate' can be used to lower the fees a borrower has, to lower the overall interest rate or APR - the Annual Percentage Rate or the fee can be given directly to the borrower.

If this Bill becomes law, the consequences are obvious.

1. Most borrowers will have to apply at Banks.

These insitutions generally do not have the specific rate or program that a mortgage broker might be able to offer. Higher rates, stringent underwriting guidelines and delays in service are just a few of the detrimental effects this Bill will create. It is folly to consider that banks alone have the ability to provide all variations of loan products under one roof.

2. There will be a gradual end to competition.

When this occurs, there will be an escalation in interest rates throughout the mortgage industry. A monopoly of banks will be the powerhouses of control in all mortgage transactions. If this is allowed to occur, many Americans will not be able to purchase a home.

3. There will be an elimination of niche, specific type lenders.

There are lenders that provide financing specifically for first time home buyers or borrowers that might want to purchase a home or refinance a property considered  out of the ordinary. This would mean a property with less than 500 square feet, a condo development over 4 stories, a hillside home, a house in a flood zone, a coop, a property over 20 acres, rural, agricultural and the like could not be financed.

4. A borrower will lose the freedom in choosing the type of loan best suited for its specific need at the time of application.

There is no need for Congress to force intelligent Americans to accept loan products that are useless and do not help or alleviate a borrowers specific financial situation.

5. The end of financial relationships.

It is becoming evident in American culture of the systemic and continued destruction of relationships in all aspects of society.

The 'Elmer Fudd' history of Congressional intervention in the American economy is documented by the incompetence attributed to the passage of NAFTA, the emergence of China as the main purveyor of inferior goods, the wholesale elimination of jobs to India and other countries in the region due to 'downsizing', the inept enforcement of immigration laws which lowers the standard of living, the concomitant destruction of manufacturing and industrial jobs in America, all of these are actions followed by the consequences of Congressional desires to infiltrate the financial marketplace. The dismal history of excessive regulation imposed on American business has created the flight of engineering and professional jobs to other countries.

Additional consequences are attributed to the type of jobs being created in this country. The proliferation of service sector jobs are unable to sustain the American economy in the future. With trillion dollar deficits and the concerted effort to devalue the American dollar, these are just a few of the occurrences created by the 'bright minds' in Washington. All told, the laws passed by the politicians has engineered the economic problems we are experiencing today.

As you know, we have covered the sub-prime mortgage problem throughout our previous TEAMBLOGS. We encourage you to call your congressman or contact Rep. Barney Frank to end the continuation of ill conceived legislation which would create a deepening financial DEPRESSION in this country.

IT'S ALL ABOUT MONEY, POWER & THE CONTROL BY OTHERS IN OUR LIVES!

We welcome REFORM of the mortgage industry but the new measures imposed should not eliminate the choices borrowers are allowed to make in their financial decisions. The goals of REFORM must ultimately benefit the borrower - the consumer.

Our next TEAMBLOG will elevate this discussion in a manner that will reenforce the suggestions and assertions we have put forth.

Please help defeat HR BILL 3915.

We encourage you to get MAD!

Howard Beale tells the truth! Click below!

www.americanrhetoric.com/MovieSpeeches/moviespeechnetwork2.html

Thanks Again