Thanks Allen......

Posted 2/23/2004 11:39 AM Updated 2/24/2004 2:13 AM


Greenspan says ARMs might be better deal
By Sue Kirchhoff and Barbara Hagenbaugh, USA TODAY
WASHINGTON — Federal Reserve Chairman Alan Greenspan said Monday that Americans' preference for long-term, fixed-rate mortgages means many are paying more than necessary for their homes and suggested consumers would benefit if lenders offered more alternatives.
In a standing-room-only speech to the Credit Union National Association meeting here, Greenspan also said U.S. household finances appeared generally sound, despite rising debt levels and bankruptcy filings. Low interest rates and surging home prices have given consumers flexibility to manage debt, he said.

"Overall, the household sector seems to be in good shape," Greenspan said.


AP file
Greenspan


Americans have been buying homes and refinancing mortgages at a record pace in the past several years, lured by low interest rates. Most mortgages are fixed rate, so consumers can prepay when rates go down but do not face higher costs if rates rise. Under adjustable-rate mortgages (ARMs), which made up about 28% of mortgages in January, borrowers usually have lower initial rates but face the risk of higher payments if rates in the broader economy rise.

While borrowers can refinance fixed-rate mortgages, Greenspan said homeowners were paying as much as 0.5 to 1.2 percentage points for that right and the protection against a potential rate rise, which could increase annual after-tax payments by several thousand dollars.

He said a Fed study suggested many homeowners could have saved tens of thousands of dollars in the last decade if they had ARMs. Those savings would not have been realized, however, had interest rates shot up.

"American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage," Greenspan said.

Joseph McKenzie, deputy chief economist at the Federal Housing Finance Board, says buyers like the stability of fixed-rate mortgages, but there is increasing flexibility in products. "There are lots of innovative programs, especially targeting low-income and first-time buyers," he says.

The Mortgage Bankers Association said the average rate for a 30-year fixed mortgage in the week ended Feb. 13 was 5.46%, compared with 3.27% for a one-year ARM. Mark Zandi of Economy.com says that although Greenspan is technically correct, for some borrowers, including those with high debt, fixed-rate mortgages may be a better bet.

Perfect example....

of why we are in the deep deep deeeeep hole... Can someone please tell me why the media insists on getting some of the lousiest people possible to interview WHO IMMEDIATELY BECOME POSTER CHILDREN ON HORRIBLE ISSUES? let alone this jackass and all the crap he has done(using his company bank account to cover Las Vegas marker, that lousy movie he invested where whats his face wrecked 1mil Ferrari at some event to promote etc)... if your wondering what it is that has made ex mtg ppl look bad this is a perfect example enjoy......

Quick Loan Fundings JACKASS CEO

BE SURE TO EMAIL DANNY BOY AND THANK HIM FOR ADDING TO THE NEGATIVITY TOWARD THE MORTGAGE INDUSTRY AND EX MTG PPL!!

Question is this is real or hype....

ok to those saying it doesnt exist here ya go.. in your face naysayers!
thanks "lily"

on this one there is no reason why an analyst with any number of mortgage companies out there isnt qualified for this number crunching is number crunching whether its retail or commercial... "BA/BS in Finance or Accounting preferred. 2-3 years in a commercial credit underwriting or similar position required. Must have the ability to uncover problems/weaknesses while utilizing independent judgement. NO MORTGAGE APPLICANTS will be considered.

http://jobview.monster.com/getjob.asp?JobID=64551928&WT.mc_n=MKT000152


heres another again a mortgage collector is qualified yet see below on the post "prefer no mortgage collectors - they don't seem to do well." WHAT!!!

http://webpad.mindscope.com/avails02592/asp/jobdetails.asp?JobID=2934

Just a note on the poll

I wanted to make it clear to those voting of what is being said here that if the business was to turn around would you go back BUT keep in mind it WILL NOT BE AS IT WAS THE LAST 3-4 YEARS!!! I say this for those voting YES the days of 100% NINA 5yr fixed Option Arm are gone... the investors of those days are gone they will not do what they did after the brutal hits they have taken.. I get the feeling there are some folks voting YES b/c they think the days of doing the 100% like above will be back and where one will charge a borrower $15-20k in fees ... If thats what your thinking when you vote then it will make the poll useless... I'm hoping this will be "legit" statistic that can be used in the future to help many of us get work, because there is a very bad stereotype that when the business turns around people will go back. This stereotype companies have is probably the number one reason why we can't get jobs... Please keep that in mind when you vote....

Get the Word Out

To anyone visiting this page who is experiencing what is happening right now on the job hunt I need your help. Please get the word out to people you know in the same boat of nable to get work because they were in the mortgage business. Get them to come visit this page and post comments etc.. I am looking to do what I can to get "our" fair shake in the media but cannot without the "traffic" to back it up. Its one thing for a potential journalist to see this page or my thread on Implode O Meter and see a few posting of people bitching that they can't get jobs they may think huh interesting. If they see hundreds of responses from people all over the country in this bad situation it will seem more news worthy. As many of us needed volume in the mortgage business the same quota goes from here... I want ot make this topic as legit and serious as possible to get the media attention we need...

Need your help

Anyone visiting this blog and is falling victim to the current blackballing against ex- mortgage professionals I need your help. Please let me know of companies you know for a FACT are saying do not hire ex-mtg ppl. If you have been turned away for a job without reason other than the typical we went with someone with better credentials I'd like to know aswell.
Some may ask why? I personally have seen jobs advertised where I am a great fit for and have been shot down without even being given a chance to interview that are posted repeatedly. Clearly they are looking for someone to fill that position but choose not to even contact those of us who ARE QUALIFIED because of our past mtg experience.
But I have been hearing and seeing posts online of people saying they were told by the company they interviewed with that the company isnt hiring any ex mtg ppl yet the poster leaves out the company.... So please help me get the names of these companies.

On another note the stories continue to pop up about what is happening to myself is happening to other around the country. I need to hear more experiences and get as many facts as possible on this horrible situation.

Misconceptions against ex "mtg people"

I am finding it time and time again of the misconceptions against exmtg profls. I recently attended a job fair where several recruiters there said b/c of the income issue they won't be able to find me anything, mind you I never brought up money. I like many want to go to work and make an honest living and pay my bills. Why is it that people(hr, recruiters etc) automatically jump to conclusions and sign your "career death warrant"?

So listen corporate america
1) Many exmtg profls did honest work and are not crooks, many had nothing to do with the fraud going on and the fall of many companies.

2) Why is it a crime for people to make a good living at a job where the industry is/was boooming? I mean all the former geeks now tech gurus were making a bundle years ago, why didnt you shut the door on them after the tech bubble burst. (Iknow I know there was a lot of unemployment but tech is here and those people were still able to get jobs)

3) Ex mtg profls are not going to drop the job they are trying to get with your company the moment the mtg business turns around! Many got burned and many got humbled plus let me let you in on a secret what happened will never happen again so another mortgage boom is as likely as Osama Bin Laden throwing his arms in the air and surrendering. Do you honestly think the investors who got burned on all those mortgage backed instruments will ever come to the table again and say yea go ahead off 100% financing for someone with no income and no assets (NINA). Eh Eh not gonna happen and we arent going to job hop on you so let it go already.

4) Yes we job hopped and it was done for many reasons from horrible work conditions, lack of product, restrictions of who you can or can't do business with to finding out that you were working for "slave wages" where someone doing identical work as you was making A LOT more. No different than a pharma rep leaving company A to go to B b/c of better perks or company B rolling out a new drug that will shut out A's business. THE SAME DIFFERENCE FOLKS!!

5) Many exmtg profls who were in sales were not order takers it may appear that way especially since at one point it was very easy to sell loans with rates at record lows whether you were wholesale or retail. But let me assure you many had to work their tail off to get the sale because of the fierce competition. You know the same competition advertising, telecom, medical device etc etc reps deal with on a day to day basis. Again its the SAME DIFFERENCE!!!

6) Lets get something straight no matter what industry your in there are crooks, right now mortgage sticks out like a thumb but that doesnt mean the person your interviewing was one of them. Where do you come off judging mself or many of my colleagues and stereotype us. Don't lump us all together, first off find out what they did b/c there are differences with job titles in this business JUST LIKE YOURS. An underwriter in mortgage is no different than an underwriter in insurance same goes for wholesale reps in mortgage they are no different than reps in again advertising, telecom, medical device reps.. outside sales is outside sales the job descriptions are practically identical only difference is product. So dont assume an account executive in wholesale is the same as a loan officer there is a big difference, the rep 9 times out of 10 had no idea what the loan officer or broker was telling the borrower. The same with underwriters they were working with what was submitted to them by processors who in turn received paperwork from the loan officers/brokers. I guess I'm trying to stik up alot for those on the back end who had no borrower contact. But not all loan officers/broker were bad. Its a shame the bad apples ruined for all.

That said think to yourself how can you judge someone when you don't know what it is they did. Talk to them and ask them what business they did. Don't toss a resume or have an undocumented directive to flat out not hire anyone with mortgage experience. Think if it was someone in your family wouldn't you want them to get a fair shake at an opportunity.

Give us a chance, many are on the verge of bankruptcy and foreclosure not because of a bad loan but b/c no one will hire them!

Just think if it was you........

one last thing this was a post I did after speaking with a recruiter cpl days ago and am beginning to nail down the problems ex mtg profl's are encountering, im posting it b/c days apart I was hearing the same thing!

Oct 10, 2007 4:20 am

i just got off the phone with a recruiter who said one of the biggest hangups with employers he deals with is over pay when it comes to finding a new home for ex mtg profl's! the concern ends up being directed as to when the mortgage business comes back the people they hire will leave and go back to it which i believe many on here will not do.. (plus imo the bus as we know it is dead and never will be the same even if there is ever a comeback)

so how can you convey to corp america to take a shot with people that they are done with the business and wont go back?

what can be done to get companies to look past this, this alone is probably one of the major factors why so many of us can't get a job! personally when im asked on type of pay im seeking ill discuss what was posted on the job or do some poking around and bring up what is accepted... i advise many to do this you need to forget mtg pay and go with reality!

at least getting closer to the actual issues, now if there is a way we(the unemployed) could get a voice out there and say hey what your thinking is wrong maybe we can start to find work

these are the hangups we need to find a way around, solution actually, to convince potential hiring mangers to look beyond
1) pay
2) job hopping
3) bunch of order takers that cant really sell
4) 0 ethics(greed which brought on the fraud)