There were several direct quotes from Susan Wilson, from Corral Hollow Real Estate that I feel led readers to come to the wrong conclusion about my business practices. First of all, Susan only came to work for me in September 2009, and secondly, our name is Realty World, Corral Hollow Real Estate.
It is unfortunate that Susan feels she did not receive the training necessary for her to make the correct decisions while conducting real estate activities, and I am looking forward to providing her with the intense training that I provide all agents who work under my broker’s license. I know that excellent training programs outside my office are also available in all real estate areas to any agents in the Tracy area who want to participate.
Her comment that “everyone was doing that, those stated-income loans,” is not correct.
I have been in the real estate business since 1986 and a broker since 1992. I can assure you that everyone was not doing that!
There are many ethical lenders and Realtors here in Tracy who chose not to go down those avenues that are nothing short of lender fraud. Those “bad” loans, in my opinion, are the key reason we are all suffering from this foreclosure market.
I and other well-respected brokers did not allow our agents to be a part of lender fraud. We encouraged our clients to shy away from those loans, even if it meant not getting that home.
For the record, “stated-income loans” were at one time a useful tool for lenders to help qualify people who were self-employed and did have a valid income — but due to their tax returns, it was difficult to document that income.
Somewhere over the past few years, that term evolved into, “Gee, let me see how big of a home you want, and we’ll just put down the qualifying figure.”
The sad part is that the underwriters doing the loans and the secondary lending market just looked the other way and accepted it.
In my opinion, ignorance is no excuse for breaking the law. Lending and real estate practices have always been very well “guidelined” and monitored by the California Department of Real Estate. However, due to the magnitude of the problem, it just got out of hand.
I am happy to see that the DRE is now going back to correct the problem. This dilemma has been a huge concern of all of us brokers who do practice real estate honestly and ethically.
• Sue Langdon is the owner and broker of Realty World, Corral Hollow Real Estate, in downtown Tracy.
As a mortgage underwriter, I take offense at your blanket accusation as quoted:
"The sad part is that the underwriters doing the loans and the secondary lending market just looked the other way and accepted it."
For the record, I NEVER "just looked the other way". I pride myself on strong analytical skills and years of experience to make the best decision possible for both the lender AND the borrower. I speak for myself and many of my colleagues.
It is reasonable to assume that there are unethical underwriters, just as there are unethical brokers. It doesn't serve any purpose to blame an entire group for the actions of a few, no matter what the issue is.
It is the underwriter's responsibility to rely on their judgment (or what I call the BS-O-Meter) to determine whether the credit score, credit use patterns, verified assets, and stability of employment warrant the approval and extension of credit to borrowers on low doc loans.
I'm sure you're aware of all of this, but the public might not be.
As for stated/low doc loans, it is YOUR responsibility as a BROKER to ensure the loan consultants under your broker's license are trained and understand the concept of such loans. I, as an underwriter, do not arbitrarily make up the stated income figure. That's all done on your end. YOU are ultimately responsible for the actions of the people under your license.
As for your business practices, if you were affiliated with Corral Hollow Property Management, I certainly hope you provide Susan Wilson and the other people employed under you better training than the people who staffed that office.
That was NUTS?
Yes, investigate the NUTS.
Detegulate the industry and require some accountability practices be estabilished so we know which lender to choose from.
Currently, how do you tell a NUT from and Acorn tree?
Shut down the ones that are specially interested in being self serving. From the top down.
That is an awfully short employment?
Should I speculate that she could be disgruntled employee?
Going off the subject for a moment, Darvocet talking now...
Just have this weird impression that USA is like rising Economical souffle... one more economical crisis could flatten it?
No one could foresee the economical disasters and the heavy bailouts.
Too bad we didn't have bailouts to save Corporations and jobs from being outsourced?
Bailouts for Health Institutions and Researches?
Bailouts for Failing Hospitals?
Bailouts to help with natural disasters such as Hurricane Katrina, with the infrastructure such as replacement of aging bridges?
At least with these bailouts, taxpayers would have been taken care of first!
Think the Bail Outs is fair, even with the bonuses to CEO's? Seems the elites gets even better deals?
Bailouts to help the farmers re-open the farms and grow food organically, be less dependent on foreign export. I am leery of eating imported food since there are no pesticide regulation and hardly any inspectors on the food supply.
Bailouts should have gone to help the Americans. No? If, so, they would have remained employed and keep their homes?
CN
When you let W2 wage earners, especially ones with edgy credit, do stated income loans, you have laid the groundwork for disaster.
That is the match that lit the fire.