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What would the real estate market look like today if agents and brokers and lenders said what they mean and meant what they say and gave the consumer accurate and worthwhile information that was in the best interest of the consumer?
What would the real estate market be like today if experienced agents and brokers used their skill to perform valuable services only for cooperative buyer and sellers and limited their representation to sensible consumers who respected our knowledge and experience?
What would the mortgage industry be like today if agents and brokers and lenders used their skills and knowledge to perform honest and experienced services to consumers and helped the consumer obtain only loans that consumers could reasonable be expected to repay?
What would the real estate market look like today if the Senate and House of Representatives performed their statutory oversight duties and monitored the entities that formulate the guidelines under which mortgage companies make home loans and actually represent the interests of the consumer?
What would the real estate market look like today if the Wall Street investment banks did not sell Mortgage Backed Securities like so many chicken parts, making a market for off balance sheet products sold to investors relying on the repayment of mortgage loans of which many will result in foreclosure?
WHAT WOULD INDY SAY??
Seller: I've decided to list my house for $749,900. I know that you said that the highest sale in my neighborhood is only $639,000, but I want to have some negotiating room. Broker Slick said he would list my house for my price and he is charging a lower commission than you.
Listing Agent Indy: I just listed a property identical to yours just a block away for $599,900. The market is still declining. My fee is, indeed, higher than Broker Slick. So, I understand why you would want to list with Broker Slick. Good luck.
Buyer: Indy, I have a list of homes that I found on the Internet and I want to see all 17 of them Saturday.
Buyers Agent Indy: Your time is valuable so I'll preview the list over the week and identify the best six homes on your list. I'll review the full listings and make sure they are all available. You don't need to spend time looking at homes with pet odors, wet basements, foundation problems, aged appliances and other problems that would cost you a lot of money after settlement. I'll get the disclosures and eliminate the homes with serious defects or that are significantly overpriced for the area. Be prepared to spend at least 15-30 minutes looking at each home so you know the homes well and can limit the selections to the best two or three to investigate further. I'll send you photos of the interiors of the best homes so you'll have an idea about upgrades and decorating matters.
Loan Officer: Hello Indy. Ms. Hopeful contacted me about loan approval. I used the XYX program which will give her a low payment for the first few years. All you have to do is be sure to get 6% closing credit from the seller of what ever house she selects to buy.
Buyers Agent Indy: That program will cost my buyer about $5,000 out of pocket more than she has available. You've got almost $2,000 in junk fees on this thing and 2.5 points. What if she wants to buy a home for sale where the seller doesn't have an extra 6% to contribute? This home is in FHA range. Please redo the qualification for an FHA loan.
Senator Longspeech: I have long championed the working men and women of our country and my state and I believe that what this country needs is a moratorium on interest payments on home loans for all Americans. The mortgage crisis in this country is caused by the greedy real estate industry, the greedy mortgage companies, and the greedy investors on Wall Street and it's time to do something for the working families who shouldn't
be forced to pay for homes that they can't afford. I'm going to present a bill that will provide $25,000,000,000 to pay for mortgage payments for working men and women for the next year.
Citizen Indy: Senator, With all due respect, has the $11,000 in campaign contributions from various banking and financial influenced your bill to subsidize mortgage payments for a year? I see you accepted a trip to the golf resort in Arizona from several lobbyists for the Banking Industry. I see also that the head of your reelection campaign is headed by a lobbiest who represented several Wall Street iinvestment houses.
Chairman Saynothing: We believe that the market will continue to see significant fluctuations for the coming months leading to a moderate disruption in indices causing investors to limit consideration certain instruments influenced by a rise or fall of some rates leading to disruptions in certain sectors sensitive to these forces at particular times in the cycle of reporting statistics that may or may not reflect consumer pressure on the prices of some commodities or consumer goods and services.
Senator Indy: Chairman Saynothing, you have just presented a statement that says nothing about anything. What are you doing here?
Chairman Saynothing: I was invited by Senator Longspeech to testify. I don't know what I'm doing here.
Investment Banker Slink: We have a fantastic new investment opportunity for you. It's known as a "Mortgage Backed Security". These securities are backed by the home owners of the United States of America. Everyone knows that the American home owner is the best consumer in the world. The Federal Reserve has lowered interest rates to a point where everyone wants to buy a McMansion and lenders are able to give loans with no income verification and no down payment. These stocks cannot lose.
Senator Indy: Wait a minute! You're telling me that you're not selling me a loan, but just a tiny piece of a loan. In fact, you're selling me an interest in a security that is backed by a tiny piece of many mortgage loans, many of which were are going to see an increase in payments in a couple of years? What happens if the home owner can't make the payment. . . . . . . . .
TO BE CONTINUED. . . . . .
Courtesy: Lenn Harley, Broker, Homefinders.com