I don’t know about you, but I am on the verge of a breakdown. Why? Because I am so frustrated with the lending institutions that I have developed a drool, a twitch, and a wicked rash. I truly think the lending institutions are hindering our economic recovery. The bailout money is not translating into increased sales as far as I can see. What I do see is a lot of bank execs with spray on tans, new hair weaves, and fake-tooth smiles that gleam like tombstones in the California sun. Due to the drop in home values, refinancing odds are worse than the odds that Ms. Lohan will drop off the radar, keep her clothes on, and join a nunnery. And modifications are as challenging as navigating the L.A. freeways on a skateboard while wearing a blindfold.
I have observed that there is double speak in all bank dealings. Thus, I think it would be helpful to have a translation guide to understand the dubious promises being made daily by these Not-Lending institutions. Does anyone remember Jon Lovitz on Saturday Night Live (“I slept with Morgan Fairchild)? Well, Jon, I’d believe your imaginative claim before I’d believe some of the following promises (all of which I have actually heard):
For Those Just Off the Turnip Truck
1.“Qualified buyers can still get a loan.” (Translation: “Don’t forget to rip out your kidney and staple it to your application.”)
2.“After you submit your loan mod package, we will reply in 30 days.” (Translation: “We will mutter, ‘Hell, No, Dude’ to a donut somewhere on the opposite coast, and then we will use your file as a foot stool. You have about as much chance of hearing from us as from Amelia Earhart.”)
3.“We have your client’s application in our files.” (Translation: “We threw your paperwork into Modification Missy’s trunk. She’s on her way to Vegas, but she’ll get to it soon. Oh wait, “What happens in Vegas stays in Vegas’…and so will Missy. She’s not coming back…and neither is your file. Next!”)
4.“We require a complete modification or short sale package.” (Translation: “We require three packages – one for the shredder, another one to be left on a desk so someone can steal your pathetic identity, and one to be erroneously sent to the Foreclosure Department.”)
5.“We are the fastest in turnaround when your buyers need a loan.” (Translation: “Underwriter Earl (Missy’s cubicle mate) will slip into his sparkling red pumps, click them together, turn around three times, and squeal, ‘There’s no place like home…and your client sure as hell ain’t gettin’ one, honey!”)
6.“We sympathize with your client’s situation.” (Translation: “HaHaHaHaHa. Tell him to grow a set.”)
7.“Your client’s file is in the hands of experts who have experience in navigating rough waters.” (Translation: “Our trained negotiators were formally pirates in the Carribbean, and your client’s ship is about to be seized.”)
8.“This short sale will close about thirty days after approval.” (Translation: “This short sale will close about thirty days after Peter Minuit returns Manhattan Island to the Indians.”)
What Happens in Banking Stays in Banking
1.“All we need is one more document to complete the file.” (Translation: “All we need is your remaining kidney. We lost the first one. It was last seen in Missy’s trunk.”)
2.“We are here to help those who are struggling to pay their mortgages.” (Translation: “Files of those who have stopped paying will be expedited because our values are backasswards. Thus, we encourage all applicants to blow their credit ratings. It’s trendy! By the way, didya notice my sparkling new chompers?”)
3.“Your client has a chance to get his loan modified, but he cannot miss one trial payment.” (Translation: “Although he cannot pay, we will string him along for as much time as we can in order to get his savings and retirement money before seizing his home and kicking grandma to the curb. Incidentally, does Granny still have her kidneys?”)
4.“Trial Payments are for a maximum of three months.” (Translation: “Then we call them “String” payments, because we string you along until you are ready to string yourself from a tree limb. In the meantime, we will be doing the limbo to see how low we can go.”)
5.“The computer has given us a loan approval based on the appraisal.” (Translation: “Of course, Appraisal Reviewer Rita may lower the value of the appraisal even if it comes it at value, because she must account for dismal market conditions – for which we were largely responsible and continue to be largely responsible – and because Rita must cover her arse to keep her job because she just purchased your unemployed, disabled neighbor’s foreclosed home while the neighbor’s sobbing children clung to her fat ankles.”)
6. “In order to complete this short sale, your client needs to contribute cash.” (Translation: “Although the guy is losing his 20% down payment, has lost his job and has no money at all, why can’t he rip the braces off his kids’ teeth and sell them for scrap metal? C’mon – work with us here!”)
7.“I’ll get back to you tomorrow.” (Translation: “You’ll never find me again. If you call back, you’ll just get someone else who has been working here for five minutes. You will have to start all over again. You will have to tell your story to fifty more screeners and submit three more short sale packages. You will develop another tick before this is all over…and maybe even Tourette syndrome. Now excuse me, I’m on my way to Vegas with Missy, Earl and Rita…and one of your kidneys.”)
I have observed that there is double speak in all bank dealings. Thus, I think it would be helpful to have a translation guide to understand the dubious promises being made daily by these Not-Lending institutions. Does anyone remember Jon Lovitz on Saturday Night Live (“I slept with Morgan Fairchild)? Well, Jon, I’d believe your imaginative claim before I’d believe some of the following promises (all of which I have actually heard):
For Those Just Off the Turnip Truck
1.“Qualified buyers can still get a loan.” (Translation: “Don’t forget to rip out your kidney and staple it to your application.”)
2.“After you submit your loan mod package, we will reply in 30 days.” (Translation: “We will mutter, ‘Hell, No, Dude’ to a donut somewhere on the opposite coast, and then we will use your file as a foot stool. You have about as much chance of hearing from us as from Amelia Earhart.”)
3.“We have your client’s application in our files.” (Translation: “We threw your paperwork into Modification Missy’s trunk. She’s on her way to Vegas, but she’ll get to it soon. Oh wait, “What happens in Vegas stays in Vegas’…and so will Missy. She’s not coming back…and neither is your file. Next!”)
4.“We require a complete modification or short sale package.” (Translation: “We require three packages – one for the shredder, another one to be left on a desk so someone can steal your pathetic identity, and one to be erroneously sent to the Foreclosure Department.”)
5.“We are the fastest in turnaround when your buyers need a loan.” (Translation: “Underwriter Earl (Missy’s cubicle mate) will slip into his sparkling red pumps, click them together, turn around three times, and squeal, ‘There’s no place like home…and your client sure as hell ain’t gettin’ one, honey!”)
6.“We sympathize with your client’s situation.” (Translation: “HaHaHaHaHa. Tell him to grow a set.”)
7.“Your client’s file is in the hands of experts who have experience in navigating rough waters.” (Translation: “Our trained negotiators were formally pirates in the Carribbean, and your client’s ship is about to be seized.”)
8.“This short sale will close about thirty days after approval.” (Translation: “This short sale will close about thirty days after Peter Minuit returns Manhattan Island to the Indians.”)
What Happens in Banking Stays in Banking
1.“All we need is one more document to complete the file.” (Translation: “All we need is your remaining kidney. We lost the first one. It was last seen in Missy’s trunk.”)
2.“We are here to help those who are struggling to pay their mortgages.” (Translation: “Files of those who have stopped paying will be expedited because our values are backasswards. Thus, we encourage all applicants to blow their credit ratings. It’s trendy! By the way, didya notice my sparkling new chompers?”)
3.“Your client has a chance to get his loan modified, but he cannot miss one trial payment.” (Translation: “Although he cannot pay, we will string him along for as much time as we can in order to get his savings and retirement money before seizing his home and kicking grandma to the curb. Incidentally, does Granny still have her kidneys?”)
4.“Trial Payments are for a maximum of three months.” (Translation: “Then we call them “String” payments, because we string you along until you are ready to string yourself from a tree limb. In the meantime, we will be doing the limbo to see how low we can go.”)
5.“The computer has given us a loan approval based on the appraisal.” (Translation: “Of course, Appraisal Reviewer Rita may lower the value of the appraisal even if it comes it at value, because she must account for dismal market conditions – for which we were largely responsible and continue to be largely responsible – and because Rita must cover her arse to keep her job because she just purchased your unemployed, disabled neighbor’s foreclosed home while the neighbor’s sobbing children clung to her fat ankles.”)
6. “In order to complete this short sale, your client needs to contribute cash.” (Translation: “Although the guy is losing his 20% down payment, has lost his job and has no money at all, why can’t he rip the braces off his kids’ teeth and sell them for scrap metal? C’mon – work with us here!”)
7.“I’ll get back to you tomorrow.” (Translation: “You’ll never find me again. If you call back, you’ll just get someone else who has been working here for five minutes. You will have to start all over again. You will have to tell your story to fifty more screeners and submit three more short sale packages. You will develop another tick before this is all over…and maybe even Tourette syndrome. Now excuse me, I’m on my way to Vegas with Missy, Earl and Rita…and one of your kidneys.”)
Posts
2 comments:
Gwen, loved your post and your sense of humor. As a banker with 30+ years in the business, I'm embarrassed at the state of our residential lending industry.
Speaking from the perspective of new originations, the regulations put forth from Washington are insane, and too few lenders are capable of providing applicants a complete list of needed documentation at the time of application ... Most applicants will reluctantly give you their left kidney, but hate being asked for a lung, bladder, and liver three days before closing! ;D
My recommendation is find an experienced lender, who knows the importance of VOC (Voice of the Customer) with a back office that is the antithesis of bureaucracy, likely a community banker or seasoned boutique mortgage banker/broker.
As for short sales and modifications ... what a mess. Small banks work, but the large banks and servicers are nothing but factories, and often without the financial incentive (they usually do not own the underlying loan). My recommendation would be to get to the executives that run these divisions and build a relationship ... and you seem like the kind of person that's capable of doing so. For those institutions that prove to be stubborn, I'd connect with a litigious advocate, who has the expertise and cares about his/her clients.
I'd enjoy hearing what, if anything, you've found that works.
Paul, what a brilliant, well-written response. A comment worthy of your thought-provoking explanation would take some time, and unfortunately, am leaving town in less than an hour and will be on the move for the next twelve day Your insights as a former banker really should be shared with others in this industry.
I have featured post on Active Rain and Agent Genius, wherein I also blogged this post under different titles. May I have your permission to puplish your comment on those two sites? I would love for other agents and brokers to hear your prospective, as well as your suggestions. Thank you so much for your time...and for caring about our industry so much. If you were still in the business, you would definitely be MY GO-TO GUY!
Post a Comment