Comments on: Mortgage Companies are Crazy http://code.mincus.com/37/mortgage-companies-are-crazy/ Mon, 26 Jul 2010 13:46:59 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: John Hunter http://code.mincus.com/37/mortgage-companies-are-crazy/comment-page-1/#comment-43607 John Hunter Sun, 02 Dec 2007 01:32:34 +0000 http://code.mincus.com/37/mortgage-companies-are-crazy/#comment-43607 Given what we have seen since you wrote this I think it is a bit clearer that expecting a sensible reason for the mortgage companies behavior is the crazy thing. My guess is it was just a stupid game like when a car dealership wants to to write a check for the deposit to take bank to their "manager" to bargain for you. In the mortgage companies case trying to get you to take more money so they got a bigger commission. Obviously the mortgage companies proved to be very poor indeed with many bankrupt now and other witting off hundreds of millions in losses. Given what we have seen since you wrote this I think it is a bit clearer that expecting a sensible reason for the mortgage companies behavior is the crazy thing. My guess is it was just a stupid game like when a car dealership wants to to write a check for the deposit to take bank to their “manager” to bargain for you. In the mortgage companies case trying to get you to take more money so they got a bigger commission. Obviously the mortgage companies proved to be very poor indeed with many bankrupt now and other witting off hundreds of millions in losses.

]]> By: juan fidalgo http://code.mincus.com/37/mortgage-companies-are-crazy/comment-page-1/#comment-17355 juan fidalgo Sun, 06 May 2007 14:48:22 +0000 http://code.mincus.com/37/mortgage-companies-are-crazy/#comment-17355 My guess is they wanted you to "put your intentions in writing" instead of the simple checkbox which probably does not meet all their needs for some internal process they have of accounting for a person's ability to do this and/or making it more difficult for persons in the future to get away with decreasing their indebtedness which is not in their favor. My guess is they wanted you to “put your intentions in writing” instead of the simple checkbox which probably does not meet all their needs for some internal process they have of accounting for a person’s ability to do this and/or making it more difficult for persons in the future to get away with decreasing their indebtedness which is not in their favor.

]]> By: mincus http://code.mincus.com/37/mortgage-companies-are-crazy/comment-page-1/#comment-11980 mincus Mon, 05 Mar 2007 23:13:57 +0000 http://code.mincus.com/37/mortgage-companies-are-crazy/#comment-11980 If this is true, its retarded. Because 1 - In the application you answer the question "Will this be your primary residence" and 2 - Why wouldn't they make me sign a statement saying that? Instead I signed a statement saying that I realized I was buying a house that cost less than the one I was selling. If this is true, its retarded. Because 1 – In the application you answer the question “Will this be your primary residence” and 2 – Why wouldn’t they make me sign a statement saying that? Instead I signed a statement saying that I realized I was buying a house that cost less than the one I was selling.

]]> By: dacaprice http://code.mincus.com/37/mortgage-companies-are-crazy/comment-page-1/#comment-11978 dacaprice Mon, 05 Mar 2007 22:19:27 +0000 http://code.mincus.com/37/mortgage-companies-are-crazy/#comment-11978 The bank wanted to be sure that it was going to be used as a primary residence. Primary, second homes (a 2nd home usually has to be 30 miles from where you live) and investment properties have totally different lending and underwriting guidelines. Investment properties are more risky to lend on for a bank so interest rates are higher on them and they will only lend up to a certain percentage of the value, usually 70-90%. Most people don't downgrade when it comes to homes (our American pride) so they usually ask for a letter of explanation in those situations. The bank wanted to be sure that it was going to be used as a primary residence. Primary, second homes (a 2nd home usually has to be 30 miles from where you live) and investment properties have totally different lending and underwriting guidelines. Investment properties are more risky to lend on for a bank so interest rates are higher on them and they will only lend up to a certain percentage of the value, usually 70-90%.

Most people don’t downgrade when it comes to homes (our American pride) so they usually ask for a letter of explanation in those situations.

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