Monday, September 18, 2006

frontbericht / from the frontline

am besten spiegeln die berichte uas dem wahren leben die realität abseits der spröden statistiken die i.d.r. zeitverzögert bzw. oft genug ungenau sind. hier ein besispiel aus einem mortagebrokerbüo das sich auf den in den letzten jahren explodierenden "subprimesektor" spezialisiert hat. zudem hat er sein office noch im hot spot san diego und umland.

ltv = loan to value / kredit im verhälntnis zum verkehrswert (nicht beleihungswert)

dti= debt to income / mtl. ratenbalstung im verhältnis zum einkommen

zur ratenermittlung gehört "Principle Interest Taxes Insurance monthly payment or PITI"

fico= kreditscoring (top boni ab 750-800)

dank geht an txchick57, ben und smithosity,

I am quite new to real estate investing. It would seem that I know 1/10 about RE investing as many of the regular contributors to this board and even less than the "experts."

Sometimes, however, I think that the "experts" should just spend one week in my office observing the financial profiles of our refinance applicants. I believe their outlook would be much different.

Most people simply cannot believe the profiles that we see.

I am the sales manager of a branch office of a top-10 national lender.

My office of 7 loan officers takes +/- 100 loan applications per week, 90% of that coming from cold calls.

Of the last 100, I have taken some simple statistics and have found the following:

  • 68/100 had LTV's over 80% at time of application
  • 16/100 had LTV's over 100% at time of application
  • 78/100 had back end DTI's over 55%
  • 31/100 had back end DTI's over 70%
  • 23/100 had FICO's under 500
  • 81/100 had credit card debt above $10,000
  • 54/100 had credit card debt above $20,000
  • 18/100 had credit card debt above $50,000
  • 66/100 had Pay-option ARMs
  • 27/100 had Pay-option ARMs and mortgage lates
  • 22/100 were either in forbearance or had been in forbearance within the past 12 months

We took 14 applications today and we cannot qualify a single borrower for any type of loan. We are sub-prime, in fact, sometimes I say we are sub-sub-prime. We can qualify almost anyone for a loan. Not today.

Let me tell you about just one borrower from today:

  • Husband and wife
  • Husband on fixed income military retirement $1800/mo
  • Wife makes $9500/mo as a registered nurse
  • 5 properties with $3,400,000 in mortgages
  • All mortgages currently have prepays
  • 8 interest-only mortgages
  • 1 option ARM deferring $3500/mo
  • 3 in Chula Vista and 2 in Escondido
  • No more than $75,000 equity in any of the homes (verified by comp checks with 3 appraisers)
  • All properties with front end LTV over 90%
  • $65,000 credit card debt $672 Mercedes payment
  • One property had 3 mortgages, one of them hard money
  • 621 mid FICO
  • 2x30 in the past 12 months
  • Not a dime in the bank

They have been making mortgage payments with their credit cards and refinancing to pay off the credit cards. They are at the end of their rope, but refuse to throw in the towel.

This is not even an "extreme" example. I could show you dozens of these every single week.

I just wish the experts would see what I see. I think the statistics released would be different.

Granted, I only see applications from San Diego and Imperial Counties, but this is just getting out of hand

wow! wenn das kein wake up call ist!

denke das ausmaß dieser schilderung zeigt was für trouble am brodeln ist. denke auch diese schilderung durchaus stellvertretend für den sektor im subprime ist.



Anonymous Anonymous said...

9500$ pro Monat für ne "Krankenschwester"?????

Wife makes $9500/mo as a registered nurse

4:59 AM  
Blogger jmf said...


habe das gerade nochmal nachgelesen

ein teil mag auch daducrh erklärt sein das in den kreditverträgen die daten oftmals lediglich geschätzt werden müssen und nicht durch gehaltsabrechnungen belegt werden müssen. (statet income)

schöne heile krediteconomy usa.

8:00 AM  

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