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Resolved Question: In what ways is a Buy-to-let less regulated than a residential mortgage ?

I have heard that the BTLs are less regulated than residential loans but I do not understand what that actually means ? more

Resolved Question: I want to know how to become residential mortgage loan officer?

I am 23 years old and about to be a college grad in August, in probably the worst job market in our history. I really want to start a career instead of taking another pointless job that is not going to fulfill my career needs. I know someone in my family is a Loan Officer and she did not even attend college. I am wondering how someone gets into this type of field. What type of licensing is required and how do I overcome the lack of experience? Also I have read answers to this type of question about going on job boards and such, I have been for 6 months now and I can't even land an interview. I am also wondering if there is someone who would be able to mentor me and it could be as simple as just e-mailing back and forth. Thanks. more

Voting Question: Can an SBA loan be used as a down payment on a residential mortgage?

Here is the scenario, I am considering purchasing a home based day care for $680k. the day care is $180K and the seller will carry the note. The home is the other $500K. Can I use an SBA loan for $100K to use as a 20% down payment on a residential mortgage. Then I could put 10-20% ($10-$20K) down and purchase the entire package? more

Resolved Question: Going back to school question - student loans, grants....?

Im a mortgage/banking/residential appraisal professional who is wanting desperately to get out of this industry before the bottom falls completely out. I want to go back to school in something with medicine. nurse, ultrasound, paramedic... something. but i don't know where to start regarding the grants, student loans... there's so much information that i don't have and don't know where to find it. information that could make or break the deal of going back to shool. can anyone point me in the right direction? live in new orleans, la. thanks in advance, S more

Resolved Question: the Questions about Real Estate in Market.?

What is going on with RE market? Residential vs. Commercial? Property Values? Loan Defaults? Institutional Losses? Why is it so difficult to get a mortgage now? What are the causes? What types of loans were the culprits of the bubble? How did Wall Street make it worse? What forms of fraud did borrowers commit? Are they the victims? What conflicts of interest existed among the various market participants? What were some of the excesses of the lending institutions? How is it possible that the US residential crisis could bring down the global financial system? more

Resolved Question: Do outside sales/inside sales jobs prefer no experience or is there a trick that I dont get?

I've been applying to inside outside sales jobs(account executive and manager) and doing pretty good in the interviews but getting very few offers. Keep in mind these are entry level positions requiring 1-3 years of experience. I'm a recent grad from college and have had much more part time experience than any of my friends while in school. These jobs came with much greater responsibilities as well. So basically I dont know if theres somthin on the resume that scares them away or what it is that makes these deals fall through. Most of my friends were able to land these jobs that require 1-5 years of experience with pretty much 0 expererience or at best it would be very unrelated to the job. Keep in mind most didn;t have an IN or a contact in there that would place them in the company. Any idea what im doing wrong or whats wrong on my resume? I do good on interviews and the main concern for hiring managers is that I have no B2B sales experience it seems. Only the first company is my first real full time job. company 1, A January – March 2009 Business Development Associate • Analyzed all physicians within market for referral patterns and potential marketing plans. Concentration placed on Neurosurgeon, Orthopedic and Chiropractic physicians • Generated new business by cold calling physician offices and effectively presenting, marketing and advertising our service • Cooperate with other divisions and business units to ensure that our marketing strategy and measures are aligned with overall corporate strategies Company 2 January – July 2008 Sales Intern Program • Building and maintaining nationwide database of over 500 prospective clients • Calling commercial real estate buyers throughout the U.S. to introduce transactions, drive bids and assist in driving the market-making process • Assisting Directors with the hands-on execution of transactions in various phases • Creating sales proposals and market evaluations using necessary documents from third parties Company 3 2005 - 2008 Manager • Directly responsible for management and operation of a high quality 24- hour care center for elderly and disabled residents • Analyzed existing business practices and developed new business model to maximize high quality of service • Worked closely with the Department of Social and Health Services to meet the WAC regulations company 4 2004 – 2005 Agent/Marketing Specialist • Marketed listings throughout Seattle and held open houses to aggressively grow area sales • Prepared contracts and documentation; advised clients on general escrow and title procedures • Designed and updated marketing materials. Performed competitive product evaluations company 5 2003 - 2004 Manager • Responsible for the marketing and managing of a $10 million portfolio consisting of over 18 commercial and residential real estate assets in the Puget Sound area company 6 2002 - 2003 Junior Loan Officer • Assisted Customers in determining financial needs and recommended appropriate mortgage solutions • Embraced cold calling as means to build business and generate new leads more

Resolved Question: How can I finance a land purchase (small scale) (UK)?

I'm looking to buy 3-4 acres of grazing land for around £20,000. I'm unsure about finance (will take proper advice if I find somewhere suitable). Can you tell me whether I need a land mortgage? Or will an ordinary residential mortgage or a loan suffice? more

Voting Question: Why did Congress not move in on the housing crisis with the same urgency as they have with this stimulus?

And why did Barney Frank proclaim in July 2008 that Fannie and Freddie were "sound" AFTER he took notice to Mark Zandi's report in December 2007? Quoted from the Washington Post....... He (Zandi) is best known among his peers as one of the first economists to grasp the magnitude of the housing problem. His book "Financial Shock," about the subprime mortgage crisis, caught the attention of House Financial Services Chairman Barney Frank (D-Mass.), who became an early cheerleader. "Residential mortgage loan defaults and foreclosures are surging and without significant policy changes will continue to do so through the remainder of the decade," Zandi warned the Senate Judiciary Committee in December 2007. more

Resolved Question: Do we have to use 1003 Loan Application when we purchase residential house?

Hi Year 2006 I purchased house ($625K). I hired mortgage broker and he applied loan for me. BB&T was my lender and loan was approved in 20 days. I put $125K for deposit and got $500K loan. Last year one of my friend told me that BB&T is not a wholesale lender. There must be a loan officer. I was wondering because from the begging to the end I was contacted by my mortgage broker. He was acting like BB&T was a wholesale lender. I requested full documents from the lender and I reviewed it. When I saw Loan Application I was confused because it was not 1003 Loan Application. It was Bank’s Retail Loan application. I am not sure but I think that retail loan application is for personnel loan, student loan, or home equity loan etc NOT FOR RESIDENTIAL PURCHASE LOAN… * I said I am not sure. And my loan is-5 years Installment loan- That means I pay $3400 for 59 months and 60th I have to pay about $400K. On settlement day I was out of town and mortgage broker told me that my father could sign the settlement documents if I give him on authorization (Power of attorney). So we did. I believe my father didn’t know what he was signing. Q.1 They (Lender) don’t have to use 1003 when we apply for residential home loan? 2. Is there any violation that I was not contacted by Bank’s Loan Officer or others from the Bank? 3. What do you think about my loan program? 4. Refinancing is my best solution? P.S. When I applied loan, mortgage broker got all my information on blank paper. He said “I will fill loan application out for you”. I called mortgage broker….NO ANSWER Heard rumor that he went to jail. Thanks. more

Resolved Question: IS Time to Sell BOA ?

WASHINGTON (AFP) - - The US government extended a new lifeline Friday to Bank of America, injecting another 20 billion dollars in capital and guaranteeing shaky assets to help it weather the grinding financial crisis. ADVERTISEMENT The bailout for the largest US bank by assets is aimed at helping Bank of America absorb broker Merrill Lynch, which faced a meltdown last year as the credit crunch intensified. A joint statement by the US Treasury, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) said the government would invest 20 billion dollars in the bank, on top of a 25-billion-dollar injection last year under the Troubled Asset Relief Program (TARP). Additionally, the government "will provide protection against the possibility of unusually large losses" on 118 billion dollars of assets backed by residential and commercial real estate loans, the market for which has been frozen due to the housing meltdown and credit crisis. The banking giant will pay the government a dividend of eight percent on the investment and agree to limits on executive compensation. The bank also agreed to implement a "mortgage loan modification program" to limit foreclosures that threaten to undermine a recovery in the housing sector. The announcement came hours before BofA released its fourth-quarter earnings. The Charlotte, North Carolina-based bank posted a loss of 1.7 billion dollars, after managing a profit of 268 million dollars a year earlier. The results stem from soaring credit costs and massive write-downs. Merrill Lynch, which was not included in the results, lost over 15 billion dollars in the quarter. The bailout comes with US authorities scrambling to avert a further collapse in the banking sector that could deal another blow to an ailing economy. A similar deal was announced last year with Citigroup. "The objective of this program is to foster financial market stability and thereby to strengthen the economy and protect American jobs, savings, and retirement security," the Treasury said. But some analysts were skeptical and Bank of America shares fell 13.7 percent to 7.18 dollars after a dive of 18 percent on Thursday. "These measures have seemingly removed a worst-case scenario for equity holders, but they show just what a mess Bank of America has managed itself into," said Patrick O'Hare at Briefing.com. Even as other banks reeled, Bank of America appeared healthy enough to buy up troubled mortgage lender Countrywide Financial last year as well as Merrill Lynch. But Robert Brusca at FAO Economics said the bank "simply bit off more than it could chew." Peter Cohan of Peter Cohan & Associates consulting firm said Bank of America rushed to buy Merrill without a full understanding of its troubles. "The numbers clearly show that without Merrill, Bank of America would be in relatively good shape, but with it, Bank of America is a financial basket case," Cohan said. Standard & Poor's said it could downgrade the bank's credit rating and warned that BofA faces the possibility of "further write-downs" from Countrywide and Merrill Lynch. BofA has already received 25 billion dollars in capital injections from the TARP, a US financial bailout fund set up to help rescue mainly banks reeling from financial turmoil triggered by a home mortgage meltdown. That included 10 billion dollars for Merrill Lynch. Under the latest agreement, BofA will absorb the first 10 billion dollars of losses and the US taxpayers will cover the next 10 billion. Any additional losses will be shared 90 percent by the US government and 10 percent by BofA. The government aid comes as the banking sector remained in deep trouble from the real estate meltdown and subsequent credit crunch that has led to around one trillion dollars in worldwide losses. Citigroup announced Friday a quarterly loss of 8.29 billion dollars and said it was splitting into two businesses in an effort to restore profitability. Bank of America on September 15 announced it was buying Merrill Lynch for 50 billion dollars in stock, scooping up the Wall Street icon battered by the housing and credit crisis. While giving a lifeline to a troubled Wall Street giant, the deal created the world's largest financial services company. The announcement came at the close of a tumultuous weekend that saw Wall Street rival Lehman Brothers seek bankruptcy protection, leading to an intensification of the crisis in the global financial system. They cant even survive after M&A with bad debts out b4 they M&A so a waste of taxes-payer $ . so i have a chance to sell it .I not invest in all companies that have been bailed out is as good as they dead. more

Resolved Question: PLEASE HELP ME FIGURE OUT CREDIT REPORT?

I'm looking on my credit report, which I have already report identity theft for some of the things on here, but there is so much on here that isn't mine and I'm trying to figure out where it's coming from so I can report this to the police. It says that there is a "Real estate loan on behalf of 3901 TRIDENT MORTGAGEDEV. This inquiry is scheduled to continue on your record until Sep 2010." WHAT SHOULD I DO?! Is this what a mortgage comes up as on a credit report? Does anyone else's mortgage come up as this? I have two other ones on my credit report that say "residential rentals on behalf...etc" and they are from someone renting apartments in my name and they are real fraudulant cases. Can this one be a mortgage in my name? I can't seem to trace it back when I call the address listed and I don't know what "TRIDENT MORTGAGEDEV" is because it comes up different companies when I google it. Somebody please help! I can't stand all of this identity theft on my report and this just might be a mortgage! Also, does the "Address Identification Number" mean that is where is home is located if this is a real mortgage taken out in my name? I also can't get a hold of Experian, for someone to help me with this. more

Voting Question: what is mortgage relief?

i'm behind in my payments almost 3 months, and my loan has been re-assigned to chase now from citi residential. i have already done a loan modification 6 months ago. more

Resolved Question: How do I get a loan on a non-conforming residential property?

I have been looking at a property for a while and absolutely love it. As it turns out, we looked at the zoning and it is a non-conforming residential. It is beside an industrial park, so they zoned it so that when the house is destroyed or abandoned over a year, it must become commercial. Since the bank did not want to deal with this zoning "problem", they just told us that we need to find a house they will give a mortgage on. It has been forclosed on for almost 9 months, so rezoning it would take too long. I was just wondering if there was anyone with advice. Thanks. more

Voting Question: Tell me what you think about this for our economy?, if this will help the housing market. read to the end.?

- For a new buyers and for a limited time only ( 4 months or 6 ) backed by the Gov. ( guaranteed loans), banks will offers 25 years mortgages with 25% as a down payment paid by the buyer and ( 0% interest ) for the first 18 months for only residential houses up to $300,000, and 9 months (0% interest) for houses up to $500,000. - Banks will get 0% interest loan from the Gov for 18 or 9 months for the amount of total loans they made. So they don’t lose any money by paying the Gov interest while not charging the buyers any interest. - Buyers will pay a monthly payment as if they were paying interest ( as regular mortgage, that will make them save money in their equity ), after the 0% interest period ends the interest rate will be as it was at the time of buying ( so the interest rate will be locked at whatever would be at the time of perches) the rate will apply to the remaining of the loan ( all together it will be less than 25 years loan ) - Property tax will be waved for the fourth year after buying, that way buyers will not get all the benefits in the first 2 years so they will only get the tax waver if they keep the house longer than 4 years. - New owners will not be allowed to sale before 3 years and no refinance is allowed for the first 5 years. - Houses must be occupied with in 4 months after the date of perches, cities official are responsible to verify that( so investors will not take advantage of this offer, buy the house and leave it empty hopping that they will make money after a while cause they are not paying interest). - People ( families ) who gave up their houses in the last 3 years will not be allowed to get the loan. - if the house was not occupied with in 4 months and or the payment were made late, owners will lose the property tax waver. And interest will start on their loan. There are a big number of houses for sale, and there are people want to buy, you have to make it attractive to consumers to buy, this loan will not use any of taxpayers money, you only using money that people have now and want to buy, and will not anger the people who are currently paying their payments on their houses, 1- this will take some of the houses out of the market. 2- will give the houses the new value ( stabilize the value ). 3- will create movement in the market. 4- will give good news for wall street. 5- most people when they move in a new house they fix and paint and put a new carpet and more, that will create jobs for contractors and demand for construction materials, will give cities some revenue from property insp. And other fees 6- families will cumulate a lots of money as equity in their houses in the first 18 months, that they will think 10 times before giving up their home( not like now when they don’t have any equity in their houses). 7- hopefully will increase homes value by that families who are currently own a house will have some equity by rising their home value, then they will not give up the house more

Resolved Question: How would you fix this economy?

Here are my ideas. What are yours? 1) Small scale lending must be nationalized. The "free market" has little interest in lending to individuals and small businesses. The "free market" will always avoid the risk of small loans. It isn't something that will get better with affluence or wealth. Thus, all of the historic government programs designed to facilitate lending to small borrowers must be nationalized or firmly regulated like a monopoly. The historic separation of risk and reward, the co-signing or guaranteeing of loans that has been done by Freddy mac, fanny May, FHA and others, needs to be scrapped for a government department dedicated to small capitalization lending, or heavily regulate it. Most mortgages and small business loans will fall into this category, say anything under a million dollars. Here is an easy way to think of it: We all understand that utilities have monopoly power and must be regulated. Think of residential lending in the same way. The free market will not willingly fulfill this function. The current system of private funding and government guarantee is a separation of function that simply does not work. Do you find this idea somewhat socialist? Then is the regulation of your utility company also socialist? 2) the aspects of derivative trading legalized by the "Financial reform act of 2001" needs to be repealed, permanently, or revised to have the same underwriting and capitalization requirements as the insurance industry. If an insurance business insures beyond their means, then they are consequently held criminally liable. Derivative trades must be held to the same standard. Is this too harsh? Too conservative? Then why do we hold the insurance industry to this standard, and not the investment houses? 3) Outsourcing needs to be taxed to attempt to slow or stop the capital that the the United States bleeds to India, Mexico and China. The amount those countries have grown from our outsourcing, the economic power they've used to bid up the global price of oil, is an accurate measure of the economic power the United States has lost, to outsourcing. Those revenues should be used to help fund higher education (state university systems). Let's build an affluent populous. Are you thinking Smoot Halley? India really likes it that you think that way. 4) the federal government must make provisions to develop energy sources other than foreign oil, primarily wind and nuclear energy. The raping of our coast lines and oceans for oil should be legislated permanently illegal. Notice how the call for drilling has stopped? The destruction of our oceans and coast lines shouldn't be subject to the daily price of oil. 5) disclosure of the terms of adjustable rate mortgages must be required to be in a large font size, in plain English, like effective interest rates are required to be displayed currently on all conventional mortgages. The length and nature of the "teaser" period of ARMs must be legislated to be clear and comprehensive to someone with a sixth grade education. more

Resolved Question: Getting FHA loan for 4unit. I'll need to occupy 1unit. What happens to that mortgage once I buy a home?

I will be purchasing a 4 unit building using residential financing so I'll need to occupy one of the units in order to qualify for this type of loan. I would like to purchase a single home in the next year and wanted to know how that would affect my loan of the 4 unit since I will have to move out of there. more

Resolved Question: How do I know if my debt/loan is recourse/non recourse loan?

I have a mortgage for purchase of residential property in Arizona. more

Resolved Question: Can three separate units on same plot of land have 3 separate mortgages?

We are interested in a 3 unit property on the same plot of land. A friend of mine just bought a 9 unit where 7 units were in one building and 2 were in another. He was able to get one commercial loan for the 7 units and a residential loan for the other. So if there is a property we are looking at that has 3 separate buildings, could we get three separate loans? There is one house and two cottages. more

Resolved Question: Is it true that raising taxes on income $250,000 + means only the rich will get taxed by Obama?

I walked up and down our busiest community street this morning, and I asked the small business owners if that amount of $250,000 would affect them; I visited five ma and pop pizza shops, 2 pizza franchises, a family cleaning business, a residential handyman, a painter with only 4 employees, one small hoagie shop owned by an old man, one hippie ty-dye clothing shop and a chinese laundry owned by Chinese folks for three generations now. What did I find out? THAT OBAMA WOULD BE TAXING EVERY SINGLE ONE OF THEM. EVERY ONE. WHY? BECAUSE THAT AMOUNT OF MONEY, $250,000.00 IS NOT NET INCOME, IT IS GROSS INCOME. That means it is only the amount of business done, before ANY AND ALL EXPENSES INCLUDING PAYROLL, VEHICLES, UTILITIES, RENTS, BONUSES, EVERYTHING - and every single one of these little tiny businesses GROSS THAT AMOUNT OR BETTER... Yet, the painter with 4 employees LOST MONEY LAST YEAR earning that much. When Senator Obama raises his taxes, quess what: HE IS OUT OF BUSINESS AND THERE GOES FOUR MORE PEOPLE ON THE JOBLESS LIST. JOBS WILL BE LOST BY THE HUNDREDS OF THOUSANDS. I calculated from the 36 businesses I spoke with, that out of those 36 businesses, AN OBAMA TAX INCREASE WILL MEAN THE DEMISE OF AT LEAST 9 OF THOSE SMALL BUSINESSES, AND FOR EVERY ONE OF THE OTHERS IT MEANS AT LEAST 2 EMPLOYEES MUST BE FIRED. Thats the facts; When John McCain is being blamed by Obama when it was Obama and HIS BABY - ACORN - who forced banks to loan money to people who could not afford those mortgages, its a disgrace. John McCain is the one who wrote the reform act for Freddie and Fannie mae two years ago, and THE SAME DEMOCRATS INCLUDING OBAMA WHO REFUSED A VOTE ON IT, ARE THE SAME CROOKS THAT ARE LYING TO THE PEOPLE TODAY. JOHN MCCAIN WANTS THEM JAILED. HE WANTS THEM TO PAY FOR STEALING OUR MONEY, AND THEY SHOULD PAY AND THEY SHOULD BE IN JAIL FOR THEIR CORRUPTION. WHY IN GODS NAME, DO PEOPLE WISH TO PUT INTO OFFICE A CROOK? THAT IS EXACTLY WHAT OBAMA IS, AND IF YOU PUT HIM IN THE WHITE HOUSE, HE WILL TAKE WITH HIM ALL THE CROOKS AND RADICALS THAT HE ASSOCIATES WITH AND YOU CAN SAY GOODBYE TO ANY AMERICAN DREAM ANY OF US HAD OR HAVE. DOES ANYONE HAVE ENOUGH OF A BRAIN ON THEIR SHOULDER TO UNDERSTAND THE RISK OF PUTTING THIS NUT THIS RADICAL INTO THE WHITE HOUSE?/ ANYBODY? note; Liberals, you are part of the problem, so don't bother answering my questions because if i wanted to hear more lies and more radicalism i would put on your messiah and listen to more lies. thank you. http://www.theobamafile.com http://www.townhall.com more

Resolved Question: What do you think of illegal aliens and subprime loans impact on economy?

http://www.nypost.com/seven/09242008/postopinion/opedcolumnists/illegal_aliens__the_mortgage_mess_130482.htm There's one villain that has slipped notice: how illegal immigration, crime-enabling banks and open-borders Bush policies fueled the mortgage crisis. It's no coincidence that the areas hardest hit by the foreclosure wave - Loudoun County, Va., California's Inland Empire, Stockton and San Joaquin Valley, and Las Vegas and Phoenix - also happen to be some of the nation's largest illegal alien sanctuaries. Half of the mortgages to Hispanics are subprime. A quarter of all those subprime loans are in default and foreclosure. Regional reports across the country have decried the subprime meltdown's impact on illegal-immigrant "victims." A July report showed that in seven of the 10 metro areas with the highest foreclosure rates, Hispanics were at least one-third of the population; in two of those areas - Merced and Salinas-Monterey, Calif. - Hispanics comprised half the population. The National Council of La Raza and its Development Fund have received millions in federal funds to "counsel" their constituents on obtaining mortgages with little to no money down; the group almost succeeded in attaching a $10 million earmark for itself in one of the housing bills passed this spring. The Washington Post noted in 2005: "Hispanics, the nation's fastest-growing major ethnic or racial group, have been courted aggressively by real-estate agents, mortgage brokers and programs for first-time buyers that offer help with closing costs. Ads proclaim: "Sin verificacion de ingresos! Sin verificacion de documento!" - which loosely translates as, 'Income tax forms are not required, nor are immigration papers.' " Fraudsters also have engaged in house-flipping rings using illegal aliens as straw buyers. Among many examples the FBI cites: a conspiracy in Las Vegas involving a former Nevada First Residential Mortgage Company branch manager who directed loan officers and processors in the origination of 233 fraudulent Federal Housing Authority loans valued at over $25 million. The defrauders made and submitted false employment and income documentation for borrowers; most were illegal immigrants from Mexico. To date, the FBI reported, "Fifty-eight loans with a total value of $6.2 million have gone into default, with a loss to the Housing and Urban Development Department of over $1.9 million." Thanks to lax Bush administration policies allowing illegal aliens to use "matricula consular cards" and taxpayer-identification numbers to open bank accounts, mortgage fraud has grown. Money-lenders still have no access to a verification system to check Social Security numbers before approving loans. In an interview about rampant illegal-alien home-loan fraud, a spokeswoman for the US General Accounting Office told me five years ago: "Considering the size of Los Angeles, New York, Chicago, Houston and other large cities throughout the United States known to be inundated with illegal aliens, I don't think the federal government is willing to expose this problem for financial reasons as well as for fear of political repercussions." http://www.americandaily.com/article/23278 While offering credit cards to people who are here illegally and lack Social Security numbers, Bank of America has been offering checking accounts and even mortgages to illegal aliens for years. Lending giants Wells Fargo and Citibank are among those who have also extended home loans to illegal aliens. In 2005, President of Immigration Matters Marti Dinerstein, angry over this practice, told CNN: “It’s institutionalizing illegality. Now there’s no distinction being made between the people that follow all the rules and those who break our laws by entering the country or overstaying their visas.” An American cannot obtain a mortgage loan for a home unless he or she has government issued identification, established credit, and verifiable income. However, for several years, the banks have been giving mortgages to illegal aliens who lack all of these things. Now they have a bailout so will illegal aliens ultimately benefit? Off our tax dollars? more

Resolved Question: Can I buy a commercial property as a residential property?

I am interested to buy a property for my retirement in a remote area so I can reside there. The part of property has commercial area which is a casual restaruant and an antique shop, but the majority of the property is a house. Also, I have no intention of running any of business but I would like to lease them to tenants. Can I still get a loan as a residential mortgage? Thank You for reading my questions! more

Resolved Question: do you really think 700 billion can stop this ? if you dont like reading dont answer?

Martin D. Weiss writes: The proposal before Congress for a $700 billion mega-bailout is far too little to repair the damaged debt and derivatives markets ... and, at the same time, far too much for investors and taxpayers who must put up the money. How big is the problem, really? In the past, Congress has repeatedly asked us for data and analysis on these issues, and we have provided it in Congressional testimony and white papers. In that same tradition, below is a partial first draft of a white paper we will be submitting on this matter: Why the Magnitude of the Mortgage, Debt and Derivatives Crisis Overwhelms The $700 Billion Bailout Plan Now Under Discussion in Congress (Partial First Draft of Weiss Research's Submission to Congress and Federal Banking Regulators) Last week, the President, the Treasury Secretary and the Federal Reserve Chairman announced their view that Congress must get to the root of the debt crisis in America by providing a broad solution that truly puts the crisis to an end. However, the magnitude of the crisis afflicting mortgages, other debts and derivatives clearly overwhelms the $700 billion bailout proposal currently under discussion. To better understand the magnitude of the problem ... First and foremost, we urge members of Congress to disregard data based on the list of troubled banks maintained by the Federal Deposit Insurance Corporation (FDIC). The FDIC's list has only 117 institutions with $78 billion in assets. But given the current proposal for a $700 billion bailout, it is clear that Administration officials tacitly recognize that the FDIC list understates the problem. There are many more financial institutions at risk or in need of assistance with their toxic paper. How many more? We believe a more accurate count comes from our analysis of: (a) the derivative risks assumed by major banks, (b) the mortgage holdings of the largest regional banks and (c) all banks and thrifts with TheStreet.com's financial strength rating of D+ (weak) or lower. Based on this analysis, we believe: 1,479 FDIC member banks are at risk of failure with total assets of $2.4 trillion. In addition, 158 savings and loans are at risk with $756 billion in assets. In sum, banks and S&Ls at risk have assets of $3.2 trillion, or over 36 times the assets of banks on the FDIC's watch list. These numbers alone indicate that the $700 billion contemplated for the bailout plan could be severely inadequate. Second, Congress should seriously consider the facts in the Federal Reserve's Second Quarter Flow of Funds Report . In this report, released on September 18, just one day before the President announced the Administration's $700 billion bailout proposal, the Fed estimates that the nation's mountain of interest-bearing debts has now grown to $51 trillion. Plus, it provides critical additional insights regarding the breadth of the debt problems facing the nation, as follows: 1. The ownership of residential mortgages is dispersed among many different sectors. There are $12.1 trillion in mortgages on single- and multi-family homes in the United States. But these are not held only by banks and S&Ls. They are spread among a wide variety of institutions and individuals, all of which could have similar claims to federal assistance. Specifically ... 2. Fannie, Freddie and GSAs are still at risk. As a first priority, the plan would have to expand the recently announced bailouts of Fannie Mae and Freddie Mac in order to properly secure the residential mortgages held by government-sponsored enterprises (GSEs) and agencies (GSAs). These now total $5.4 trillion, according to the Fed. Plus ... 3. Private sectors and local governments also own residential mortgages in substantial quantities. The bailout plan would also have to cover: Investment banks and others that issue asset-backed securities, now holding $2.1 trillion in mortgages, Nonbank finance companies ($426 billion), Credit unions ($332.4 billion), State and local governments ($159 billion), Life insurance companies ($61.6 billion), plus ... Private pension funds, government retirement funds and households themselves. 4. Commercial mortgages are now going bad as well. The current debate seems to focus exclusively on residential mortgages. But at many regional and super-regional banks, much of the risk is currently in the commercial mortgage sector, where recent data denotes many of the same difficulties as the residential sector. To truly get to the root of the problem, Congress cannot exclude these either. There are $2.6 trillion in commercial mortgages outstanding in the United States. As with residential mortgages, these are also dispersed widely beyond the banking sector — $644 billion held by issuers of asset-backed securities, $263 billion held by life insurers, $65 billion at nonbank finance companies and $37 billion at Real Estate Investment Trusts (REITs). 5. Mortgages are less than hal5. Mortgages are less than half the problem. Although it is true that the current debt crisis in America originated in the mortgage market, it is not accurate to say that the root of the crisis is strictly in this one sector. Rather, the debt crisis has multiple and varied roots, with excessive risk-taking in credit cards, auto loans and virtually every other form of private-sector debt. There are currently $14.8 trillion in mortgages in America. But beyond mortgages, there is another $20.4 trillion in consumer and corporate debt. This means that mortgages represent only 42% of the private-sector debt problem in America. 6. Local governments are a higher priority. Overlooking the debt problems of state and local governments would also be a big mistake. Indeed, given the essential nature of their services, including the pivotal role they play in homeland security, it could be argued that their credit challenges take priority over those faced by banks, S&Ls and Wall Street firms.Currently, the Fed estimates $2.7 trillion in municipal securities outstanding, most of which have been reliant on a bond insurance system that remains on the brink of collapse. In short, to truly get to the root of the problem as the President is requesting, Congress' new bailout plan would have to cover a lot of ground beyond just the banking industry. Third, we urge Congress to get a better handle on the enormous build-up of derivatives in America, beginning with a thorough review of the OCC's Quarterly Report on Bank Trading and Derivatives Activities, First Quarter 2008. Although derivatives were originally designed to help reduce risk, it is widely acknowledged that their volume and usage have reached such an extreme level that they have become, instead, speculative bets which greatly increase the systemic risk to financial global markets. And although regulators have few details about these derivatives, most officials now realize they may be at the root of the panic thofficials now realize they may be at the root of the panic that began to spread throughout the global banking system in the wake of the Lehman Brothers bankruptcy on September 15. Therefore, it should be well understood by all members of Congress that, to ward off possible renewed waves of global panic, the bailout plan would also have to address the following facts: The notional (face value) amount of derivatives held by U.S. commercial banks is $180.3 trillion. The credit exposure to derivatives (risk of default by trading partners) is $465 billion, up 159% from one year earlier. U.S. banks with the greatest credit exposure to derivatives are HSBC (with $7.21 in risk per dollar of capital), JPMorgan Chase (with $4.11 in risk on the dollar), Citibank ($2.79), Bank of America ($2.15) and Wachovia ($.77). Further, after Bank of America's merger with Merrill Lynch, which reports $4 trillion in derivatives, and after a possible Wachovia merger with Morgan Stanley, which holds $7Martin which holds $7.1 trillion, these exposures will likely be intensified. Congress must go into its deliberations with its eyes open, recognizing that any bailout plan that does not include these banks and other players in the vast market for derivatives could leave a gaping hole through which financial panic can spread again. Fourth, for all of these debts and derivatives, a bailout plan would, in normal circumstances, require (a) realistic estimates of the amount that is already delinquent or in default, and (b) a reasonable forecast of how many more are likely to go bad in a continuing recession. However, the only estimates currently available are those reflecting actual write-downs recognized by large, global financial institutions — over $500 billion. That figure does not include the thousands of other institutions which are among the sectors we cite above. Nor does it include losses incurred but not yet properly booked — let alone losses not yet incurred. To date, noTo date, no government agency is providing such estimates. But without them, any budgetary planning for this bailout is next to impossible. No one will know, except in retrospect, if the bailout truly removes the cancerous debts from the economic body or leaves most of them to fester and spread. In sum, there should be no illusion that the $700 billion estimate proposed by the Administration can actually provide anything approaching a total solution to America's current debt crisis. It could very well be just a drop in the bucket. Too Much, Too Soon for the U.S. Government Securities Market There should also be no illusion that the market for U.S. government securities can absorb the additional burden of a $700 billion bailout without traumatic consequences. In its Fiscal Year 2009 Mid-Session Review, Budget of the U.S. Government , the Office of Management and Budget (OMB) projects the 2009 federal deficit will rise to $482 billion. However, this projection was madebefore the bailouts of Fannie Mae, Freddie Mac and AIG and before the White House's $700 billion bailout proposal. Even assuming no budget overruns beyond the $700 billion, these bailouts threaten to double or even triple the federal deficit. The OMB seeks to minimize its $482 billion deficit projection by stating it will be only 3.3% of estimated GDP, which it deems manageable. However, after adding the cost of announced and proposed bailouts — approximately $1 trillion — the federal deficit could be between 8% and 10% of GDP. No reasonable person could deny that such a dramatic increase in the deficit will have an equally dramatic impact on interest-rate levels. To attract investors, the U.S. Treasury will have to pay much higher rates ... and these higher rates, in turn, will drive up rates on mortgages, credit cards and nearly all borrowing.In light of these facts, we have four recommendations: Recommendation #1. Before passing any bailout package to patch up certain sectors of the debt markets, consider the impact of massive government borrowing on all sectors of the debt markets, and on the value of the U.S. dollar. History proves that far less dramatic increases in government borrowing have crowded out millions of private borrowers, driven up interest rates and greatly damaged the economy as a whole. So it's reasonable to assume that the massive increases in government borrowing required for a bailout of this magnitude would put unprecedented upward pressure on interest rates, greatly aggravate the debt crisis, sink the U.S. dollar, and cause even more damage to the economy than in the past. To avoid these consequences, we recommend that Congress reject the Administration's $700 billion bailout proposal and shelve any related legislation, moving forward instead with our recommendation #4 below.Recommendation #2. If, despite the risk of causing much higher interest rates and a sharp decline in the dollar, Congress is determined to pass legislation creating a new government agency to buy up bad debts as proposed, we recommend that the new agency pay strictly fair market value for those debts, including a substantial discount that reflects their poor liquidity. Further, it should be clearly understood that: Due to the recent sharp declines in market values and market liquidity, many of the bad debts on the books of U.S. financial institutions are currently worth only a fraction of their face value. When the government buys these debts at fair market value, it will still leave most of these institutions with severe losses. Many of these institutions do not have the capital to cover their losses and will fail despite the bailout. Recommendation #3. Congress must clearly disclose to the public that: There are several significant risks to the financial system that theThere are several significant risks to the financial system that the government is unable to address with any new legislation, including defaults on other large debts and derivatives, which could trigger a chain reaction of corporate failures. Whether the bailout legislation is adequate or not to stem the debt crisis and prevent financial panic, the government will need to prioritize the protection of its own credit and seek to ensure the stability of the U.S. dollar. The private sector, in turn, will need to handle any further spread of the debt crisis largely without government financial assistance. Recommendation #4. Rather than focusing primarily on a safety net for imprudent institutions and speculators, Congress should devote more effort to bolstering the safety nets for prudent individuals and savers. These include: The FDIC, which insures bank depositors, but has inadequate funding and staffing to handle a large wave of bank failures. SIPC, which supposedly coversSIPC, which supposedly covers brokerage firm accounts, but, in practice, does not compensate investors for losses in most circumstances. State guarantee associations, which promise to cover insurance policyholders, but which have repeatedly failed to live up to their promise when large insurers fail. Unless Congress approaches its monumental task with enormous caution, it could produce the worst of both worlds: A failure to resolve the current debt crisis plus the creation of a new set of crises that merely spread the panic and prolong the pain. more

Resolved Question: Countrywide Mortgage refuses to correct my social security number on file?

Short of contacting Consumer Affairs....I have received a letter from Countrywide Mortgage informing me and the millions of others that hold a mortgage with them, that an ex-employee stole the personal information of their mortgagee's (namely me and millions of others) and that they were going to offer a free 2 year credit monitoring to make sure that my identity isn't used other than by me. My wife is on the account with me and when she called to confirm information regarding the letter, they asked her for the last four digits of her social security number to speak to them...she gave it, yet they had a 6 in place of an 8 on file. Well, we hold two different mortgages with them on two different properties, so she asked them to check the other account and that one was correct. Countrywide insisted that the originating documentation was incorrect when my wife signed it, but we checked our mortgage documents and the W9; the Form 4506 Request for Copy or Transcript of Tax Form; and the Uniform Residential Loan Application were all correct. Countrywide employee input the information incorrectly on the one mortgage. Now they are asking her to send them in the mail a copy of her social security card, a copy of her photo id and a new signed W9. We refuse to also put my wifes information at risk. I asked them, if I were to die and my wife needed to do some readjustments to the mortgage, would she be able to? They clearly said: NO, but what I didn't ask them was...if I died would my wife still be liable for the mortgage since their identifying information for my wife is incorrect? I wouldn't think so. Question is: What would you do and how would you correct this problem without putting further personal information at risk?Further, I did receive a hard letter, not an email. From that I contacted the number directly on my billing statement to confirm the account number. Additionally, I did go back to my original closing documents and they were correct, as also stated by the phone representative, but they claimed that since they had this ex-employee steal information they no longer will correct things over the phone. I know they had an input error, they know it's an input error, yet they won't budge. I will persistantly contact them every week until I get an opportunity to discuss this with someone further up the chain, although they tell you they'll pass you to a supervisor and only give you yet another phone rep! Frustrated, which is why I thought Consumer Affairs should be notified...or someone else???I also asked them if they ever do audit's to confirm that the person inputting documentation did it correctly, clearly they don't!Scot: I have a letter from Countrywide to prove that they DID ask for a copy of my actual social security card, but I'm not stupid which is why I'm fighting my way to the top of their heap to get this resolved! Thanks more

Resolved Question: A better use of 700 billion dollars?

OK, so perhaps some of you have heard proposals for a different way to spend 700 billion dollars, and perhaps you have heard this one in particular, but does it not make more sense? Use the 700 billion dollars that the government is proposing to spend on busted lenders to pay off all of the outstanding residential mortgages in the country (which if I'm not mistaken pans out some where rather close to 700 billion dollars). If you pay off mortgages, then the money goes straight to the lenders to be loaned out again. In addition, you have a large number of Americans who were burdened by monthly payments that now have additional cash in their pockets. What will they do with that money? Spend it. Economic stimulation and salvaging of lenders in one step? As a side note, I don't support any government plan that spends 700 billion dollars on this mess, but this seems at least a little more logical than what they are trying to do now. more

Resolved Question: The better plan to spend 700 billion dollars we don't have...?

Resolved Question: Better use for 700 Billion Dollars?

OK, so perhaps some of you have heard proposals for a different way to spend 700 billion dollars, and perhaps you have heard this one in particular, but does it not make more sense? Use the 700 billion dollars that the government is proposing to spend on busted lenders to pay off all of the outstanding residential mortgages in the country (which if I'm not mistaken pans out some where rather close to 700 billion dollars). If you pay off mortgages, then the money goes straight to the lenders to be loaned out again. In addition, you have a large number of Americans who were burdened by monthly payments that now have additional cash in their pockets. What will they do with that money? Spend it. Economic stimulation and salvaging of lenders in one step? As a side note, I don't really support any government plan that spends 700 billion dollars, but this seems at least a little more logical than what they are trying to do now. more

Resolved Question: Does anyone know any SPECIFICS about the $700 billion bailout?

Can anyone actually provide a thorough breakdown for a simple-minded person like me to understand why the bailout is required and the theory behind it? I mean, can someone lay out the domino theory that must be the basis for a $700 billion bailout to be implemented in the space of one week? Will bad commercial loans be bought by the new RTC-like "entity" as well as bad residential loans? Wouldn't large, global competitors have been happy to buy the good assets of the companies going bankrupt? I'm not sure how many people who are failing on their mortgages now will get any benefit from this. Is the benefit not intended for them directly? Is it solely to "save" our credit and financial markets (i.e., those specific banks and insurance companies that made too many risky decisions)? I know there are too many thoughts here. Any ideas on any of this are appreciated. I admittedly do not look forward to saving banks and insurance companies whose leaders took millions and who made hand over fist for several years through the same practices that now have harmed them. If smaller, they would have never been bailed out. And this is not a Democrat/Republican issue as I see it. Clinton OK'd this while the current administration and Congress let it continue unabated. And, if I'm correct, a Republican Congress was in place when Clinton signed this. Perhaps our whole system is currently just too big a mess, being steered way too much by CEOs, lobbyists, and politicians. more

Resolved Question: Does anyone know any possible SPECIFICS about the $700 billion bailout?

Resolved Question: Rental Income - Interest Only vs Repayment Mortgage?

Hello, I have decided to rent out my residential property, currently my mortgage is payment, from doing some research it appears that if I change my mortgage to a Interest Only product then I will cut down the amount of Income tax that I will have to pay on any profit I make on the rental income. Obviously by switching to a IO product I need to make sure that I have a suitable repayment vehicle to cover the capital repayment on the property, so I am going to look at investing money in a Cash ISA and Equity ISA. In other's opinion, what are the Pros's and Con's of either staying on Repayment, or switching to IO. I know that if I keep my mortgage as Repayment then my loan balance will reduce and thereby reduce the amount of interest that I'll be able to deduct as allowable expenses against tax. Thanks for any advice given. J more

Resolved Question: Paid off investment home. Can I take a 1st mortgage on that property or must I go with a home equity loan?

My brother and I need cash for a business venture and would like to take a loan out against an residential investment property that we co-own free and clear. Is our only option a Home Equity Loan? Ideally we would like to take advantage of the lower rates of a standard mortgage. more

Voting Question: Working in the mortgage business?

So, Real Estate has always sparked my interest a lot. Currently I am working on my bachleor degree in business marketing, but I really would like to work and make money while going through college. I got one job at a mortgage broker place, but it didn't work out because my boss wasn't willing to train me, and never communicated. Anyway, I met this lady in my neiborhood who also does loans. She said that she is so busy because she does residential and commercial, and needs some help. She also said that she would help train me. She also said that she works from home, and makes around 90,000 a year. Is this too good to be true? I would love a job like this to where I can work mostly from home...and, I know I can do it...as long as I have the right training. Should I take her up on her offer?also, i am not looking to make 90,000 a year. She has around 10 years of expirience, so I know that is not realistic for me who is just starting off. But, if I could make between 30-40,000 it would be terrific!thanks for answering!! Well, right now I currently do not work. My husband and I basically live paycheck to paycheck with a little money left over, but not much. So, anything I make is extra money, and I plan on always saving a chunk that way when I make 0 in one month I am covered. Plus, it wouldnt be any different than now? more

Resolved Question: Residential Property - Tax Question?

If I am on jointly listed on the deed to residential real property acquired in California, but not on the loan and there is a notarized joint ownership agreement between myself and the individual on the loan, am I allowed to write off a portion of the mortgage interest, property taxes and other qualified expenditures if the joint ownership agreement allows it? more

Resolved Question: First Mortgage, need lenders opinion?

We recently signed on to purchase our first home. We went with an FHA loan and used the builders lender. Last week we were told the loan was out of underwriting and they sent us a letter that we were approved with conditions. The conditions were just a letter stating we had not obtained any new loans or credit and they asked how I obtained the money for down payment. I had clarified this with the loan officer in the begining that I was taking a residential loan from my 401k. I get to repay myself the ineterst and its only $50 a pay period, Im paying myself. They started asking questions about this and wanted the terms of the loan. Today I was told that the info we provided was being sent to underwriting again and should be back in a couple days. She said she did not forsee any problems but she did not give the final approval. Her words started the worrying again for me, I thought it was a done deal. Is it possible we could still not get approved? more

Resolved Question: Looking at purchasing a CertaPro or ChemDry franchise and would like input.?

I have a college degree and am 28yo. I have some financial responsibility (car, mortgage, student loans). I have saved enough to self finance a low-mid cost franchise. I have had experience in medical, construction and residential improvement sales. However, I always liked residential best due to the quick close. Has anyone looked into either of these franchises? If so, what did you think? Any idea on the % of failed vs. successful franchises? Also, any other reccommendations on what to open? Is it worth taking a risk or should I just bank my money and grow old making other people rich? more

Resolved Question: To those who don't believe we are experiencing a recession? Why is this?

I form non bias opinion on answers. I will provide evidence on why we are in a recession. If you don't agree then that is you're own decision and it is respected by me. However I will challenge you to see what parts of this info is not seen in the market...and why it cannot be defined as a recession. THIS IS LONG BUT IT PROVIDES REASON FOR WHY IT IS A RECESSION: The public was addressed by the secretary of state three weeks ago with the state of our economy. It was concluded there was a sign of recession on way. However, many believe this started in November as did the subrime lending create decrease in mortgage lending. I am one of those people. I don't believe that subrime lending was the only cause. So since subrime lending fiasco started two consecutive periods ago....this indeed has led to a economic fall. GDP is important...and I have seen it fall also...but it has not reached two consecutive periods...but it will, no doubt. (that is my own opinion) Note that the GDP-growth (real seasonally adjusted annual rate) for the last quarter of 2007 was 0.6[31] as revised on February 28, 2008. It was 2.2 for all of 2007. Nouriel Roubini has outlined a harsh 12-step scenario.[32] U.S. home prices will fall between 20% and 30% from their peak. NYTimes chart ALSO TODAY IT WAS ANNOUNCED THEY HAVE FALLEN 60% Losses to the financial system from the subprime disaster, as high as $300 billion, are now spreading to near-prime and prime mortgages. The recession will lead to a sharp increase in defaults on other forms of unsecured consumer debt. Monoline insurance companies will take losses on their insurance of residential mortgage-backed securities, collateralized debt obligations and other asset-backed securities products, which are much higher than the $10 billion-to-$15 billion rescue package that regulators are trying to arrange. The commercial real estate loan market will soon enter into a meltdown similar to the subprime one. Some large regional or even national banks that are very exposed to mortgages, residential and commercial, may go bankrupt. Bear Stearns Companies, Inc. collapsed on March 16, 2008, and was bought out by JP Morgan Chase. Banks' losses will grow as a result of hundreds of billions of dollars of leveraged loans on their balance sheets at values well below par, currently about 90 cents on the dollar. Once a severe recession starts, a massive wave of corporate defaults will take place. Typically U.S. corporate default rates are about 3.8% (1971-2007); in 2006 and 2007 this figure was a rather low 0.6%. And in a typical U.S. recession such default rates surge above 10%. The “shadow banking system” (as defined by Pimco, it is composed by non-bank financial institutions that borrow short and in liquid forms and lend or invest long in more illiquid assets), will soon get into serious trouble. Stock markets in the U.S. and overseas will start pricing in a severe U.S. recession and a sharp global economic slowdown. The credit crunch that is affecting most credit markets and credit derivative markets will lead to a drying up of liquidity in several financial markets, including otherwise very liquid derivatives markets. A vicious cycle of losses, capital reduction, credit contraction, forced liquidation of assets at below fundamental prices will ensue, leading to further credit contractionI agree. One "economist" proceeded to call me every name in the book and told me i don't understand propensity. This is nothing but coin-tossing guestimations. more

Resolved Question: To those who don't believe we are in a recession...lets discuss?

I form non bias opinion on answers. I will provide evidence on why we are in a recession. If you don't agree then that is you're own decision and it is respected by me. However I will challenge you to see what parts of this info is not seen in the market...and why it cannot be defined as a recession. THIS IS LONG BUT IT PROVIDES REASON FOR WHY IT IS A RECESSION: The public was addressed by the secretary of state three weeks ago with the state of our economy. It was concluded there was a sign of recession on way. However, many believe this started in November as did the subrime lending create decrease in mortgage lending. I am one of those people. I don't believe that subrime lending was the only cause. So since subrime lending fiasco started two consecutive periods ago....this indeed has led to a economic fall. GDP is important...and I have seen it fall also...but it has not reached two consecutive periods...but it will, no doubt. (that is my own opinion) Note that the GDP-growth (real seasonally adjusted annual rate) for the last quarter of 2007 was 0.6[31] as revised on February 28, 2008. It was 2.2 for all of 2007. Nouriel Roubini has outlined a harsh 12-step scenario.[32] U.S. home prices will fall between 20% and 30% from their peak. NYTimes chart ALSO TODAY IT WAS ANNOUNCED THEY HAVE FALLEN 60% Losses to the financial system from the subprime disaster, as high as $300 billion, are now spreading to near-prime and prime mortgages. The recession will lead to a sharp increase in defaults on other forms of unsecured consumer debt. Monoline insurance companies will take losses on their insurance of residential mortgage-backed securities, collateralized debt obligations and other asset-backed securities products, which are much higher than the $10 billion-to-$15 billion rescue package that regulators are trying to arrange. The commercial real estate loan market will soon enter into a meltdown similar to the subprime one. Some large regional or even national banks that are very exposed to mortgages, residential and commercial, may go bankrupt. Bear Stearns Companies, Inc. collapsed on March 16, 2008, and was bought out by JP Morgan Chase. Banks' losses will grow as a result of hundreds of billions of dollars of leveraged loans on their balance sheets at values well below par, currently about 90 cents on the dollar. Once a severe recession starts, a massive wave of corporate defaults will take place. Typically U.S. corporate default rates are about 3.8% (1971-2007); in 2006 and 2007 this figure was a rather low 0.6%. And in a typical U.S. recession such default rates surge above 10%. The “shadow banking system” (as defined by Pimco, it is composed by non-bank financial institutions that borrow short and in liquid forms and lend or invest long in more illiquid assets), will soon get into serious trouble. Stock markets in the U.S. and overseas will start pricing in a severe U.S. recession and a sharp global economic slowdown. The credit crunch that is affecting most credit markets and credit derivative markets will lead to a drying up of liquidity in several financial markets, including otherwise very liquid derivatives markets. A vicious cycle of losses, capital reduction, credit contraction, forced liquidation of assets at below fundamental prices will ensue, leading to further credit contractionAny questions?John...man are you serious..."labeling"? C'mon...now. GDP is gonna say the same thing I pulled off wikipedia. So what are you getting at? You have to come out with something more than characterizing my question as labeling. No offense...i mean you are the only one that answered in 30 minutes. So its looking like people aren't conflicting with a recession being here. Thats good.Good answer though.Piatchi..thats a great analogy...lol. Bear Sterns was baught by JP Morgan and Chase when it had substancial losses...but hey it DID survive the depression. Just take a look at any site it will give more info. Thanks for answer. more

Resolved Question: Which usually appreciates faster -- the value of the land that you own or the value of the home on it ?

I am considering purchasing a residential lot in an area of St. Louis metro area that is rapidly expanding. A 3 acre plot in my current subdivision is listed for $280,000. Less than 5 miles away 3 acres are listed for half that price. Our plan is to build a home on the land that we purchase within 5 years. The purpose of my question about the value of land versus the value of the home on it is to help me decide how much money to sink into the land right now. Would I be better off just putting down the minimum required down payment and setting up an ARM loan to minimize my payments? My plan is to use any equity growth on the land as a down payment on the home mortgage when we decide to build. I am afraid to wait too long because we really like this area and it is developing really fast.........sorry for the long post. more

Resolved Question: Is mortgage interest included in "Total Cost" of purchase, when figuring basis for depreciation on Schedule E?

I don't know if I'm nuts or not, maybe someone out here does. I rent space in my home, so need to fill out a Schedule E for residential real estate. I'm sure that at one point when I was researching this, I read that when you are figuring the depreciation on this, and figuring the basis of the purchase, the "Total Cost" of the property includes the interest cost of the loan (mortgage) over the term of the loan, but now I can't find where I read that, and can't find any reference to it anywhere. Does anyone know if this is correct, and in what IRS (or other) document I can find this mentioned? I've looked thru IRS Pub 527 and a couple others, and cant find it. I think it may have popped up in a TurboTax help file somewhere, but cannot find it there now either. Do I have an over-active imagination??? more

Resolved Question: Credit Scoring?

In consumer credit scoring what are the key components and their weights say in Credit cards, Motor Vehicle Loans, Residential Mortgage Loans, SME's more

Resolved Question: What mortgage contracts are binding?

When signing the following documents is the borrower binded to the contracts or it open for negotiation? For example, when do I officially accpet the mortgage rate? Uniform Residential Loan Application,Mortgage Brokerage Fee Agreement,Good Faith Estimate, Federal Truth-In-Lending Disclosure Statement, Notice to the Home Loan Applicant Credit Score Information Disclosure, MORTGAGE LOAN ORIGINATION AGREEMENT. Also, can I lock a rate on a sunday? more

Resolved Question: House - can't sell, can't rent out.?

I bought a house two years ago and my loan was through USDA Rural Development. Than time I was single mother with a son. Now I'm going to get married and move with my futhure husband to another state. But I have the house! I tried to sell without making any profit, absolutely for what I paid - market in our town is dead right now, nothing sells for year and more even for such money. I need somehow cover my loan payments. I thought to rent the house out. And here is problem too - I was told I cannot do this because loan was giving for residential property and if I will rent it out it will be commercial. I'm stuck with the house. I see only one way - just return the house to USDA and that's all. I know this will ruin my excellent credit history. What else I can do? Anyway now I can't get another mortgage with my future husband (we are moving in another state) having this loan payment. Did anybody have such problem? What I can do? Thank you for your help. P.S. House in Lake City Florida more

Resolved Question: For everyone out there that thinks rates are going to drop??!!?

A month ago we were able to quote commercial mortgages with excellent credit in the mid 5's low 6's, even though treasuries have actually dropped since then, money has gotten much scarcer so banks are charging more to borrowers, simple supply and demand. Rates have actually gone to the mid-high 6s to the low 7s on good credit now. That is what the market is yielding. I know that most of our loans are commercial jumbo, but that the lack of money is going to trickle down and affect the residential lending markets and even though rates and treasuries are going to drop in the future, lending rates are going to go up, again...all about supply and demand. more

Resolved Question: what is my job title? seriously please help!?

I work for an electronic residential mortgage document ordering loan company. I think what I do is call data analyst or business analyst but not sure. Here is what I do. I map data such as borrowers name, property address, loan amount, interest rate and anything that has to do with mortgage loan into the word document itself using xml spy and I believe dos application. Example on a Deed of Trust(DOT) or a Mortgage document, where all the infomation that would be type in or fill in by the lender, borrower, title company and etc. would actually be fill in through what I did using xml spy and dos application. Does this make sense? I am just not sure if they are other jobs like this. please help. more

Resolved Question: the kamal karna roy strategy to close gap of right viz leadership viz u s president 08 elite vs. have_nots ?

Resolved Question: How is net rental income verified by lenders on a residential loan application?

If I have net rental income of $100 per month, that $100 per month will count towards my gross income figure on a residential loan application, but the monthly mortgage I pay on the rental does not count towards my monthly debt obligations (with respect to calcuating debt to income ratios), as long as I have a postive monthlt cash flow on the rental property,correct? How do lenders verify your rental income? What if I won't be renting the property until after I move out of it, but I already have a signed lease application from my future renter - is that acceptable proof? more

Voting Question: Can I increase mortgage on investment property (Australia)?

I have an investment property with a loan equivalent to 75% of its market value. I have also have a mortgage on my residential home. I would like to increase the investment property mortgage (as the interest is deductable) and use the money to pay down my home loan (which is not deductable)? Is this allowed? If not, can I get around it? more

Resolved Question: Has anyone ever heard of a mortgage company withholding your payoff balance for 7-10 business days?

We are in the process of selling our home and recently found a buyer relocating from CA. to KS. with a closing date of Feb 7th. When we called Citi Residential Lending (where our home loan is thru) we were told that we would have to make a request in writing and it would take 7-10 days. The title company faxed a signed request and 3 days later we still can't get anyone from Citi to verify the request is in process. Based on previous experience of selling a home - I was able to get my payoff balance immediately upon request - not a 7 day waiting period. And don't even get me started about how rude Citi has been - not only to us but the TITLE company who is sending them the check. We have contacted the Better Business Bureau & the Kansas State Attorney General & the Kansas Banking Commisioner (who Citi falls under) no help! Any suggestions???? or comments would be appreciated! more

Resolved Question: how does having two residential mortgages affect tax, etc?

When my sister bought a house, she alone does not have enough credit to take out a loan, so I put myself down as a co-applicant. Now I'm planning to buy my own house, I was told I can get a mortgage, but I am not sure what implication does it have if I have two residential mortgages, if any?Knowing this makes me feel must assured. Thanks! more

Resolved Question: I am a qualified mortgage consultant and looking for a position in the Bournemouth area at any Homeloan Co.?

I have been working in the Admin Dept of a Residential Funding Company and have extensive knowledge of issueing of consents to 2nd charges, banking cheques onto the system, filling in forms for the DSS and Pension Service companies, updating data on the system regarding Notices of Interim and Final Charges, and general administration and processing of home loan applications. I will be moving to the Bournemouth area in the next 2 months if not sooner and need a job urgently. more

Resolved Question: Has anyone heard that Stated Income (no income doc loans) are going away completely?

I have been hearing that lenders will be discontinuing the stated income loan completely. Does this mean that everyone will need to provide tax returns, w2's and paystubs to qualify for residential refinance and purchase loans? How many of you can qualify with what you make to refiance or buy a house? Will everyone have to have an overall debt (monthly minimum payments (on credit report), mortgage payment, property tax and homeowner insurance) vs income ratio of 45% or less? Let's say you make $3500 a month can you afford to buy a house, pay taxes and insurance on it, pay your car payment, credit cards or student loans and still stay at $1500 month total payments so that you qualify? Does anyone think this is unrealistic? more