Mortgage Broker Consultation

go to manhattan mortgage...have had excellent experiences there. would highly recommend bruce maassbach. bmaasbach@manhattanmortgage.com

You should always talk to 2 or 3 different lenders. Get pre-approved first to see what price range you should be looking at. Also, depending on whether youre buying a condo, coop, or sfr in this market, the bank you choose will matter. Its not only important that you qualify for a mortgage but the building youre purchasing qualifies as warrantable. sunny_hong@countrywide.com

Good Afternoon,

My name is Charles O. Sanchis and am a real estate broker that works nationally and used to own my own mortgage company. Currently I am still registered with the NYS Banking Department.

First you must be aware that the mortgage market is much different than it used to be. The industry has changed so drastically that you are in a good position but must know what direction you should head in. Lets first discuss brokers and bankers. Mortgage brokers are going to be a thing of the past. Essentially a mortgage broker is an intermediary that supplies a service for you a buyer in regards to financing. For that service they charge a mortgage broker fee, or sometimes called an origination. Sometimes people try to use the term Interchangeably however if the person is a mortgage broker the term is broker fee. Mortgage brokers generally deal with lenders on a wholesale basis meaning the broker will contact several different lenders and will find the best rates for their client. The broker will try to find the lowest rate possible and than increase that rate to you because they are than paid on the "back end" by the lender for giving a higher rate. This they must disclose on the GFE, or Good Faith Estimate.
Now lets talk about mortgage bankers and there are a few things that you may not be aware of. You have mortgage bankers that work for a mortgage bank; that is all the entity does is lend mortgage money. And you have mortgage bankers who work for depository lenders such as JP Morgan Chase, Bank of America, Citibank, Wells Fargo etc. Now here are some differences. Both are mortgage bankers however typically the mortgage bank that only lends money, like MANHATTAN MORTGAGE, will have a warehouse line with which they fund the loan with. During the time that the bank is underwriting your loan they are shopping that loan to Wall Street and the secondary market to sell the loan off within a few months. They do this because obviously they make money on this transaction. Therefore the mortgage bank is in the business to sell loans to Wall Street and make the highest margins possible. With that being said your interest rate is going to be higher than dealing with a depository lender. If you deal with a bank such as Chase, Bank of America, Citibank of course they will still process the loan in a similar fashion, however the entire industry is moving towards "ramping up" their retail lending divisions. They will portfolio the loan and will result in a lower interest rate.

As SHONG said it is very important to speak with a few lenders specifically Wells Fargo Home Mortgage, Chase and I suggest PNC Financial. If you are aware PNC just acquired National City Corp and are 8th largest by deposits. PNC has some products that no other lender currently has and you can find all of this out when speaking with them. I would suggest having one bank pull your credit this way you know exactly what your three fico scores are and you can ask for a copy of your credit report to see what liabilities exist for you. Once you know your scores you will tell the other two banks what your middle score is so they can price out the loan for you. This means they will quote you a rate. You will have to give them your income figures, the amount you wish to put down and a few other things but they will not have to run your credit. If they say you do they are trying to pull you in to make a deal.

As to your concern age does not matter when applying for a mortgage. They want to see a 2 year employment history within the same industry so you can not work at a retail store for one year and than go work in finance; the jobs must be in the same industry 9 times out of 10 but you can speak to the banker about that.

I hope this information helps you in the questions and concerns you had. If you have any further questions or concerns feel free to email me at my personal email c.o.sanchis@gmail.com. I am available 7 days a week as I work in the distressed real estate market also so I am very busy currently.

Sincerely,

Charles O. Sanchis

egad......I have no idea what he's talking about but having one bank pull your credit so you can inform other banks is nonsense. any real lender will want to do this themselves. call bruce-- he's honest, it won't cost you a nickel to talk to him and he can get to the point a whole lot faster than our buddy above. good luck

On $200K a year, $500K is a prudent loan. So you can buy whatever you are willing to put in as a down payment, plus $500K.

Lenders will allow you to borrow even more than that, but you'll start to feel very stretched, and you'll start to have problems with co-ops.

ali r.
{downtown broker}

Columbiacounty, obviously your previous answer was very one dimensional and going in one direction. And to respond with an unprofessional. Please do not give advise on here if you are going to steer someone in one direction and not offer true and accurate information. I assume you are not a lender nor have ever worked for you.

Every bank has a rate sheet. Based off of the scenario they can quote a rate.

First_Timer do yourself a favor and take shong's advise and mine by working with several depository banks. There is a reason why Wells Fargo, JP Morgan Chase and PNC are acquiring other institutions and they are stable enough to offer competitive pricing.

Another point to speak about is when purchasing a property the mortgage application and loan do not take into consideration your other monthly obligations such as gas, food, insurance therefore as front_porch has pointed out you do not want to put yourself in a position of feeling over stretched. First purchase you must play it comfortable and with the Manhattan Market you will see prices continue to fall much more ini the coming months. I would suggest taking some time to go into contract to see all of the inventory available.

gotta work on your english, nationwide. op asked for some advice on mortgages...I suggested that he contact a guy with whom I have done business in the past...

i'm happy if he does or if he doesn't. advice is spelled with a "c" not an "s."

I am not steering. I am a private party. you are correct I am not a lender, not sure what you mean by "nor have ever worked for you." prehaps you mean "nor have ever worked for one?"

you and mr. schlong make me nervous.

don't trust NationWideRE....he works for schlong

classic
where's my buddy alanhart and squid when i need 'em

I think after your comments no one will take any suggestions from you. Classic is right with such a childish mind.

I wish you well.

oh yeah, you're "suggestion" was great.
the guy is looking for a contact, not the name of all the banks in NY.

I ask for a glass of water and you explain how water is formed in the atmosphere...thanks alot

Upperwestrenter: First I was not commenting about you. Secondly they were not asking for a contact they were seeking information.

The both of you have made this an absolutely ridiculous discussion. I would hope you have other things to take care of and better things to do.

My suggestion was exactly the same as Shong from Countrywide: speak with several banks.

Again I wish you all well.

egad...i missed that...schlong is from countrywide?! the same geniuses that wrecked everything? how can anyone say with a straight face they are from countrywide? "hi...it's joe blow...calling from madoff equities, have I got a deal for you!" "give me everything and you'll end up with nothing."

Hi columbia, we're having a number of conversations today. Sunny Shong is from Countrywide, and initially I had the same reaction as you, but has been a very valuable source of information on SE. Has earned some respect here, I'd think, if not the company itself.

I agree that shong of Countrywide/BofA is a credible resource. It may be worthwhile speaking to him.

fool me once, shame on you...fool me twice, shame on me.

sorry...i cannot get past mr sclong's association with countrywide. if he's credible, he should find another place to work.

if you haven't seen it, take a look at "house of cards" on CNBC.

and, BAC is only a heartbeat away from Citibank's glorious situation.

what is the difference between madoff and countrywide? the bailout pure and simple.

NationwideRE: Thank you so much for your insight. I understood everything you wrote. It's nice to get an a perspective from a former insider.

I recently went into contract and was speaking to a mortgage broker here and they quoted me a much higher rate with more fees than HSBC or Chase was offering to me.

ColumbiaCounty: NationwideRE is correct. Many of the large banks (Chase, HSBC, Wells, etc.) no longer offer their products to mortgage brokers. There has been several articles about it. Anyone simply calling a mortgage broker alone is doing themselves a disservice.

See article link attached:
http://www.nytimes.com/2009/02/01/realestate/01mort.html?ref=realestate&pagewanted=print
--------------------------------------------------------------------------------

February 1, 2009
Mortgages
Banks Bypassing Mortgage Brokers
By BOB TEDESCHI
MORTGAGE brokers have long served as an important loan source. Compared with the loan officer at a local bank, brokers typically offer a wider range of mortgage products from a variety of lending institutions.

But now some brokers are concerned that they might become marginalized, as some of the nation’s largest lenders move to block them from offering their loans.

The banks argue that the action reflects a move toward more conservative business practices, but brokers complain that they are being made scapegoats for the credit crisis, and that consumers will suffer as a result.

“Borrowers are going to have fewer choices because the industry is removing the element of competition,” said Richard Biondi, the president of the New York Association of Mortgage Brokers. “Banks are one by one knocking us out of the box.”

Mr.Biondi, who is also an independent financial consultant and mortgage broker in Farmingdale, N.Y., said the most recent example of this trend was a change in policy last month by JPMorgan Chase. It will no longer accept loan applications processed by mortgage brokers.

The bank, which had in recent years been among the biggest lenders of mortgages originated by brokers, said that it would instead accept only loan applications taken in its retail locations and online.

Mr. Biondi said he had relationships with about 15 lenders, but usually made loans on behalf of four or five. The disappearance of Chase, he said, will force him to look to smaller, community-based lenders, which sometimes charge higher interest rates.

A JPMorgan Chase spokesman, Thomas Kelly, disputed Mr. Biondi’s claim that Chase’s policy shift would ultimately hurt consumers. “We are making decisions about the best way to make loans that will be good for borrowers in the long run,” he said.

Chase’s business has also changed, he noted. The bank had just 600 branches five years ago, but through mergers and acquisitions and the opening of new branches it has grown to more than 5,000, so Chase can rely less on brokers to distribute its loans.

In addition, Mr. Kelly cited an internal memo sent to employees on Jan. 13, in which executives wrote that mortgages made directly through Chase employees have lower default rates than those made through brokers. Mr. Kelly declined to elaborate further on the memo.

Some legislators and consumer advocates have criticized brokers specializing in subprime mortgages — loans typically offered to borrowers with less-than-stellar credit ratings. They charge that some brokers persuaded borrowers to apply for loans that were beyond their ability to repay.

But mortgage brokers say they have been unfairly blamed for the industry’s failures in recent years. They point out that it is the lenders, not brokers, who ultimately approve a borrower’s application.

John A. Courson, the president and chief executive of the Mortgage Bankers Association, a trade group based in Washington, said that brokers would continue to remain an “important part of the mortgage delivery process.”

Mr. Courson acknowledged, however, that lenders have had concerns about the business practices of some brokers, and that the pressure on brokers could continue.

Lenders, he said, want to do business with financially secure mortgage brokerage firms that have more of a personal stake in the success or failure of the loans they make. Only those firms with a net worth of at least $63,000, for instance, can offer Federal Housing Administration loans. But Mr. Courson said that the Mortgage Bankers Association was pushing to raise the threshold to $150,000.

Lenders have agreements with brokers that enable them to demand compensation for bad loans. The more capital a brokerage firm has, the more likely that it will be able to compensate the lender.

If implemented, such a policy could further impair an industry in which brokers have gone out of business by the tens of thousands in the last two years.

not suggesting that he not contact any and all banks. just trying to make it a little easier than getting a phd in loans.

ps.. refi'd our place about a year ago with manhattan mortgage--certainly better environment than now but everything I read in NYT was completely different than what we were able to get. ie. no hassle, interest only jumbo at a much lower rate than i was reading about.

pps. no matter what i still wouldn't go near countrywide.

Columbiacounty: Understood. It sounds like a lot has happened since you refinanced a year ago. In fact, the article said many of these changes just happened recently. What was then is no longer true.

And to be honest, I am with you on Countrywide, I never called them. No offense, Shong, but I couldn't get pass all the bad press. I hope your company changes their name soon to Bank of America.

so when madoff gets bought out by morgan stanley, you ready to go with them? so many people have written about how so many people could have been so unaware? once BAC bought countrywide, i lost trust with them as well. hey lets go buy a crooked company! no problem, we'll get rid of the crooks and replace them with ?

what have we come to that it is a reasonable strategy for a company to buy another company that is filled with crooks?

NationWide, you are right, the better thing I had to do was go out with friends for a great dinner and alot of booze.
and then I come back to see this!
CC: stop trying to convince them and lets get together and sell them all a bridge.
you can be at the top of the ponzi...oh wait, i mean, "the company"

Bunch of douchebags...i'm so sick of it...i'm selling everything i have and moving to Antarctica so I no longer have to associate with people that believe in companies that buy corrupt ones...and I'm sure everyone will be happy that no longer I will be making jokes at their expense...
putz's

hold on...is mr. nationwide from the company that used to run the slogan "nationwide--we're on your side?" only second to "1800USA loan--if you need a loan, just pick up the phone."

I believe the number was: 1-800-Schlong

Whoa whats been going on here? Columbia, you really think countrywide put everyone in this mess? C'mon get real. CW took the majority of the blame because they were the largest mortgage company. Everyone is to blame for this mess we're in, homebuyers, banks, realtors, everyone took some part in it. And besides, a majority of the loans came through "mortgage brokers" like your friends at manhattan mortgage not cw directly. Mortgage brokers are the ones that abused the wholesale system. But when things go wrong, it comes bank to the lender and not the mortgage broker who originated the loan. And yea, banks were ignorant not to enforce stricter rules. And you wouldnt go near cw because of what? Because cw did "stated" loans? (so did every other bank). I had my doubts as well and I work here but I can only be responsible for what I do. And I think I always try to do the right thing. This isnt just a job to me, its my career, I live and breathe mortgages. So before you start criticizing me, know what youre talking about. But thanks for the entertainment.

CW is officially a Bank of America company now. We will solely be known as Bank of America come April.

By the way, 800Schlong has been disconnected. Been getting a lot of weird calls from columbia and upperwestrenter.

columbiacounty....your terribly out of line and not very knowledgeable of structured finance. Your prejudice is not becoming. Sunny Hong has added clear thought to this board and, to my knowledge, been reasonable, respectful, and moderate in all responses. I can't say the same for you.

First - hypo here - with the kind of dinero that you have let's guess you might have a private banker at C, JPM, BAC wherever? Have him/her recommend a colleague in the mortgage dept and just get a swag/illustrative going as in ...."we earn this, here's our debt, we have good/great/excellent credit blah blah ..." all the usual stuff, we are looking to buy a coop / condo for x, maintenance will be y, we are putting z% down, can you write the kind of faux mortgage for us.

Jesus, bad info all around.

First of all, Manhattan Mortgage sucks, I've seen them screw up more deals by making very poor choices for the client. Just to give an example so nobody can claim libel, I had a client come to me after a loan officer there locked him on the highest day in 2 months. Stooopid mistake, if the lo knew how to read the markets he/she would have waited another week and saved the client 25bps. Maybe Columbia had a good experience there, maybe it's really his brother-in-law. They have the name because they are so big, thats it.

Nationwide, MM is a mortgage BROKER in NY NOT BANKER, check your facts. It seems to me that you have been out of the business for a while because the system has changed greatly since you were here. Lenders pay very little if ANY ysp these days. The new Agency pricing matrix makes it very difficult to make ysp unless the loan is a slam dunk perfect deal.

FIRST, do yourself a favor, either go to a local coop or credit union here in the city or as romary said find yourself a private banker. All the big guys suck, Chase, Citi, BOA. They are all very slow, they ALL charge 1% origination fees these days. You will do much better going local. Try Apple or Valley National.

I agree with Walterh7; I come to these boards expecting prim and proper behavior, AND NOTHING LESS! I am truly disgusted by how people behave...animals.

Then again, it is an anonymous internet forum, where no information is truly fact checked, and people are supposed to run wild...wait a second, it appears to me, that Walterh7 has a stick up his ass!
At least mr schlong has a sense of humor...i like that guy.
keep it real shong!

your buddy
wang