Comments on: Read All About It — If You Can http://www.fhaloanpros.com/2008/02/read-all-about-it-if-you-can/ The Unofficial Guide to FHA Loans & Mortgages Sun, 6 Jul 2008 06:08:58 +0000 http://wordpress.org/?v=2.0.5 by: Loretta Cloud http://www.fhaloanpros.com/2008/02/read-all-about-it-if-you-can/#comment-3665 Thu, 28 Feb 2008 17:22:26 +0000 http://www.fhaloanpros.com/2008/02/read-all-about-it-if-you-can/#comment-3665 Can I get an FHA loan direct from government without a mortgage broker if so how? Can I get an FHA loan direct from government without a mortgage broker if so how?

]]> by: Jeff Hogue http://www.fhaloanpros.com/2008/02/read-all-about-it-if-you-can/#comment-3534 Sun, 24 Feb 2008 01:07:16 +0000 http://www.fhaloanpros.com/2008/02/read-all-about-it-if-you-can/#comment-3534 This is exactly right. I am in the camp that says the order of blame goes as follows: (1) Mortgage Brokers. Borrowers entrust their mortgage brokers to explain, counsel, and assist in the loan process. All too often, a mortgage broker simply peddles loan applications to and from borrower to lender, trying to close the loan "at all costs." This mentality has led to tragic misconduct on the part of mortgage professionals whereby they intentionally misstate information on a borrower's loan application, try to convince the borrower that misstating information on the loan application is "legal" and "customary," and/or flat misrepresent the way the loan works. (2) Lenders. The underwriting departments of certain lenders simply turned a blind eye to the problem. Come on, did they really believe everyone made $15,000 per month and could afford a $500,000 mortgage!? (3) Borrowers. To the extent the borrowers actually knew what they were doing. Often times, however, the borrowers are innocent bystanders who go along with whatever their mortgage professional tells them to do. For what it's worth, this is my $0.02. This is exactly right. I am in the camp that says the order of blame goes as follows:

(1) Mortgage Brokers. Borrowers entrust their mortgage brokers to explain, counsel, and assist in the loan process. All too often, a mortgage broker simply peddles loan applications to and from borrower to lender, trying to close the loan “at all costs.” This mentality has led to tragic misconduct on the part of mortgage professionals whereby they intentionally misstate information on a borrower’s loan application, try to convince the borrower that misstating information on the loan application is “legal” and “customary,” and/or flat misrepresent the way the loan works.

(2) Lenders. The underwriting departments of certain lenders simply turned a blind eye to the problem. Come on, did they really believe everyone made $15,000 per month and could afford a $500,000 mortgage!?

(3) Borrowers. To the extent the borrowers actually knew what they were doing. Often times, however, the borrowers are innocent bystanders who go along with whatever their mortgage professional tells them to do.

For what it’s worth, this is my $0.02.

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