A CLIENT TELLS HIS STORY OF TODAY'S LENDING PRACTICES

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Services for Real Estate Pros with William S. Cherry & No Co., Wealth Coach

I suppose it's because I've been in business for a long time, that I write for several regional publications, and am active in civic work and my church, I hear from lots of people.

Frankly, the current mortgage loan underwriting standards and how they are being dictated is a total nightmare, and it is causing many, many well-qualified people misery.

For an example, I just had a loan officer call and tell me that the underwriter wants a corporate resolution stating that my client doesn't own stock in a particular corporation.  I screamed before I thought, "That isn't the purpose of corporate resolutions!  Have I got to teach your company the rudiments of corporations and how they work?

"You need a notarized statement from a corporate officer where he certifies that he has access to the company records (stock registry) and that those records show no common or preferred stock registered in tha person's name.  And what good does it do anyway?  The person could have owned stock yesterday, sold it this morning, and can buy stock again tomorrow."

Here's an interesting note I just got from another friend:

"Our daughter and son-in-law begin new jobs in Minneapolis In January.  They both completed their Ph.D. programs at USC, are veterans, and have great credit with virtually no debt.  They just executed a super contract on a great place at a great price that is  within their budget.  Unfortunately, they are in the loan process, and I am amazed at what they are facing.  Bankers (commercial, investment, and mortgage banks) and those who regulate and support them are my Public Enemy #1."

I agree.  This industry has become Public Enemy #1.

BILL CHERRY, REALTORS

DALLAS - HIGHLAND PARK

Since 1964

214 503-8563

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Rainmaker
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Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Bill,

I don't have as much experience as you, but it does seem that bureaucracies tend to over react every time something does not follow their prescribed routine.

Oct 24, 2009 08:31 PM #1
Rainmaker
640,198
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

Bill, the pendulum has swung so far the other direction it is becoming almost silly!!!

Oct 24, 2009 10:15 PM #2
Rainmaker
319,465
BILL CHERRY
William S. Cherry & No Co., Wealth Coach - Dallas, TX
William S. Cherry & No Co., Wealth Coach

Wayne and Marchel --

Thanks for your additions to my post.  They're good ones! 

Oct 24, 2009 10:38 PM #3
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Rainmaker
319,465

BILL CHERRY

William S. Cherry & No Co., Wealth Coach
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