Mortgage Meltdown Busted
I watched the CNN Special tonight on the mortgage meltdown being busted. I was hoping for some new insight and information but it turned out to be a poor regurgitation of what we have already heard. I guess I was looking for more of an expose’ than a group of industry insiders playing blackjack.
I thought it was very interesting that the mortgage broker on the show said 7 out of 10 calls he is getting right now are from people who are upside down on their homes - we are seeing a very similar number. I checked out his company - Lenox Financial, they just got FHA Approved in February - I wonder how they are doing with it so far. Having access to FHA’s 97% LTV Refi is considerably better than a Conventional 90% in today’s declining market.
The interview with the former Ameriquest employee was interesting. The roll played scripting for objections was insightful, the amazing part was how open he was about knowing it was a lie. It is fairly common for sales people to practice overcoming objections, but at least do it with answers you believe in. When he said ”if I can show you how to save 60 or 70 thousand dollars would you be interested?” and then was so glib about it being a lie it made me angry. The ironic part is I HAVE saved someone $60,000 or $70,000 before - by refinancing them AWAY from a garbage Ameriquest Loan. Companies like that water down the true power of a the mortgage as a financing tool. People think the savings is B.S. when in fact a low rate can save tens of thousands of dollars over a subprime loan.