Rocket Mortgage Super Bowl Ad: Let’s Repeat the Bubble!

This ad for Quicken Loans’ “Rocket Mortgage” app aired during the Super Bowl on Sunday:

Wow. It is like the people at Quicken Loans who are responsible for promoting their Rocket Mortgage app somehow completely missed the previous housing bubble and the massive economic fallout when it burst.

Yes, let’s make it super easy for everyone to buy homes! What could possibly go wrong?

Neil Irwin at The New York Times summarizes the issues with this ad: The Super Bowl Ad That Set Off Economic Alarm Bells

The hackles this raised among the economic commentariat was instant. For a while during the Super Bowl, certain segments of Twitter were dominated not by talk of Peyton Manning and Cam Newton, but by snark. “Rocket Mortgage: Let’s do the financial crisis again, but with apps!” tweeted Dave Weigel of The Washington Post.

Reducing paperwork and bureaucratic hurdles to a mortgage are desirable in isolation; the homebuying process is laden with hidden fees and conflicts of interest that can add thousands of dollars to the price of a home purchase.

But the Quicken Loans ad goes a step further, with the narrator asking what would happen if the Internet “did for mortgages what the Internet did for buying music, plane tickets and shoes,” then showing a woman getting a home mortgage with the press of a button on her phone.

If taken too literally, this could get people in trouble. A home mortgage is the biggest financial obligation most people will take on. If you buy the wrong music, plane ticket or shoes, it’s probably not a crippling financial burden, where the wrong mortgage can be.

The current problem with the housing market is that supply is too low, not that demand is too low or that people can’t get a mortgage when they want one. There’s certainly something to be said for simplifying and streamlining the mortgage application process, but it should be focused on convenience for people who are already otherwise buying a home, not somehow luring suckers into buying homes because of how easy you made it with your app.


About The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

54 comments:

  1. 1
    Weasel says:

    Basically you sign stuff, get angry at the sellers for slacking off on there obligations, sign more stuff until you own it, then you don’t pay rent anymore. That’s what it felt like.

    Kidding aside I did the WSHFC online homebuyer education as a requirement of getting their downpayment assistance, that gave me a pretty good understanding of the process.

    Sometime later wife and I were watching Portlandia, and caught the episode with this little gem https://www.youtube.com/watch?v=gsOy-6vlNa0 [What is Escrow – Portlandia] it made us laugh a lot.

    Homebuyer education training/online course should (in an ideal world) be compulsory for first time buyers, I learnt a lot that would otherwise be a mystery.

    The other aspect that could handle improvement is the home inspection, yes the house inspector does their job, but you are left to notice all the smaller details – which of course you cant notice all of them with a couple of short visits to a house until you start living in it, the option of a more thorough inspection/report could be a good idea for first buyers. But of course everyone is paranoid that the buyer is going to get cold feet and run a mile on the deal at the first sign of trouble, and no one wants to rock the boat any more than is minimally required, sometimes we felt that our agent was on the sellers side, not representing us and our interests, or just couldn’t be bothered pushing back on some of the sellers agent BS.

  2. 2

    Just because you get some information to the lender electronically, that does not mean that the standards for getting a loan are reduced. Conversely, you could hand every paper personally to a lender, but that wouldn’t mean that lender had high standards. So, this concern about lending standards is somewhat nonsensical. One thing has nothing to do with the other, and only the probably somewhat drunk & high Twitterverse could come up with such nonsense.

    Given that, I don’t really have a problem with this for refinancing. Refinance transactions are not as time critical, and if the lender can’t perform hopefully the only thing lost was a couple of months. Hopefully though the borrower would shop around for the best terms, and not just use this one app.

    What I do have a problem with would be a buyer of a house using Quicken Loans at all now that they have tainted their product (which I didn’t view highly in the first place). A couple other banks have done that too where you could do even less than this program–merely enter unverified information into a webpage, and still get a pre-approval letter. Sellers want to know that work has been done to review the borrower’s situation, not that certain information has been provided to a lender and a loan amount pumped out. That means that if and when a listing agent calls a lender and cannot find anyone familiar with the borrower, or is otherwise not happy with the answers about what has been done, the chance of that buyer’s offer being accepted or even countered should greatly reduced (assuming the listing agent is doing their job). So basically, IMHO a buyer in this market would be very foolish to utilize Quicken Loans at this point.

  3. 3
    Erik says:

    This is a great idea! We need to add this to negative amortization loans and we will be off to the races. Remember, every bubble provides an opportunity for someone to turn their fortunes around. I once live in North Everett, the land of the child predators. No I live on Alki beach over the water. I’m about to make some tea and lookout at the water. Wait, there goes another ferry and off flies a bald eagle. Love this place.

    I am glad we are not stuck in somewhere like England where the rich stay rich and the poor remain poor. I want to see the rich trust fund idiots lose their money and some of us less fortunate rise to the top. If we do in fact have another bubble similar to the last one and I sell at the right time, I am pretty sure I’ll be as rich as Ray Peppers. All I will do is go down to the auction and buy rental houses in a bubbly area like kirkland, redmond, or samammish. Put the minimum down on every house or condo and sell it or rent it out. Here is an idea… By 10 rentals and live in each one 2 years prepping it to sell. After that, no capital gains tax will be owed and I can retire at a young age.

  4. 4
    Erik says:

    RE: Kary L. Krismer @ 2
    What are the names of the websites I can get a pre-approval letter from where they don’t verify my information?

    Not for me of course… but I have this friend that thinks the market will continue going up for another 8 years and wants to take advantage of the equity. Thanks in advance.

  5. 5

    RE: Erik @ 4 – You don’t actually get a loan–just a worthless letter. I don’t want to name names in case my information is incorrect as to a specific entity.

  6. 6
    PurplePony says:

    I have a mortgage question. Is there any advantage to getting a mortgage with a credit union rather than a bank if the economy goes to hell again? I see that CUs will often have lower interest rates however from what I hear from friends and agents they can be harder to contact and close the deal quickly and so can lose you a house in this competitive market. I wonder if having a CU pre-approval can therefore be seen as a negative by sellers.

  7. 7
    Cap''n says:

    RE: PurplePony @ 6

    My completely non professional opinion is that a pre approval from a known/larger CU like BECU would not be seen as a negative.

  8. 8

    RE: PurplePony @ 6

    You have 5 days from the time your offer is accepted to shop rate and choose a lender. This is because you can’t lock a rate while shopping until you have an accepted contract. Lowest rates on jumbo loans have been coming in from banks like Wells Fargo or U.S. Bank.

    To more specifically answer your question, there is no problem with a pre-approval from BECU or First Tech. If it is an obscure credit union not readily known, then maybe. But regardless of your pre-approval letter. you should still shop for best rate immediately after acceptance. Waiting the full 5 days not recommended and checking rates with different lenders on different days not recommended (since rates change once or twice a day). Best to block out a couple of hours or more on the day after acceptance to shop and lock the rate.

    As to the market going to hell again, what advantage do you think there would be with a credit union? If you go into default because your situation goes to hell, your mortgage being with a credit union does not offer any advantage that I am aware of.

  9. 9

    By Ardell DellaLoggia @ 8:

    RE: PurplePony @ 6 – You have 5 days from the time your offer is accepted to shop rate and choose a lender.

    That is certainly a safe conservative position to take, but it’s far from clear that’s correct. Form 22A now effectively uses the CFPB definition of application which is not the same as actually telling the lender to proceed with processing the loan. A buyer could easily make “application” at several lenders within the 5 days. Under one very reasonable interpretation of the form you could apply to more than one lender and then pick from one of those lenders after the 5 day period and not waive the contingency, but picking an entirely new lender would result in waiver (due to changing lender).

    Arguably now there is no specified deadline to actually give a go ahead to start processing a loan, as there was with the prior version of Form 22A.

    Disclaimer: This response is not intended to provide legal advice to any party regarding any specific situation. To obtain legal advice a party would need to contact an attorney who would then review that party’s fact situation and agree to provide legal advice.

  10. 10

    By Ardell DellaLoggia @ 8:

    As to the market going to hell again, what advantage do you think there would be with a credit union? If you go into default because your situation goes to hell, your mortgage being with a credit union does not offer any advantage that I am aware of.

    There are some disadvantages because if you default credit unions can be more difficult to work with. They have this unreasonable expectation of being paid! /sarc

    That means it may be more difficult to get a short sale approved. In a bankruptcy context they might be more difficult to deal with on reaffirmation issues. Unless something has changed in the past 5-10 years, if you have an uncured default on any transaction they will not deal with you again.

  11. 11
    The Tim says:

    By Kary L. Krismer @ 2:

    Just because you get some information to the lender electronically, that does not mean that the standards for getting a loan are reduced. Conversely, you could hand every paper personally to a lender, but that wouldn’t mean that lender had high standards. So, this concern about lending standards is somewhat nonsensical.

    I didn’t really say that I think they’re trying to lower lending standards. My criticism is purely about the ad itself, not the product. The ad implies that the only thing holding back the economy is the difficulty potential homebuyers face when they try to get a mortgage, and that the “Rocket Mortgage” app will make things so easy that homebuying (and furniture-buying, etc.) will shoot to the moon. Both implications are nonsense, but the app itself could be a useful tool for people who are buying a home anyway.

  12. 12

    By The Tim @ 11:

    I didn’t really say that I think they’re trying to lower lending standards. My criticism is purely about the ad itself, not the product. The ad implies that the only thing holding back the economy is the difficulty potential homebuyers face when they try to get a mortgage, and that the “Rocket Mortgage” app will make things so easy that homebuying (and furniture-buying, etc.) will shoot to the moon. Both implications are nonsense, but the app itself could be a useful tool for people who are buying a home anyway.

    I was addressing more the social media uproar (“Twitterverse”) rather than your comments. But as to the second topic that is popping up, lenders don’t really tend to act in the borrower’s interest, nor is there much that I’m aware of that requires them to do so. They aren’t credit councilors. So I don’t really have a problem with this ad perhaps encouraging people to buy a house. Most ads encourage people to do things that are not in their best interest. Car ads, fast food ads, drug company ads, promos to watch Grey’s Anatomy–none of them are necessarily in your best interest! ;-)

    But getting beyond the ad stage, when you actually make contact with a lender, they’re more likely to tell you what they can do for you in the way of a loan, than to advise you as to whether the loan itself is a good idea. That’s part of the reason why negative amortization, pick-a-payment and 80/20 loans were so popular back in the day. The lender and their loan processor are selling a product, not looking out for the interests of the borrower.

  13. 13
    Marc says:

    RE: PurplePony @ 6 – I would agree with other commenters that a pre-approval from a credit union is not significantly better or worse than one from a conventional bank. However, I always mention to my seller clients that if they accept an offer from buyers using BECU they should expect that the buyers will not get the greatest service and a delay in the closing date won’t be shocking. In my experience, the customer service from BECU’s mortgage department is sorely lacking. I currently have multiple accounts with BECU so I’m not a hater and I’ve had car loans with them where the application process was super easy so I don’t know what gives.

    I don’t discourage my buyer clients from using BECU but I definitely tell them to be prepared for it and to take the squeaky wheel approach with their loan officer.

  14. 14
    Anonymous Coward says:

    FWIW, for a conforming loan, BECU’s fees are amazingly high.

  15. 15
    Blurtman says:

    Negative interest rates means your bank will pay you interest on your mortgage loan. Yippee!

  16. 16
    redmondjp says:

    RE: Blurtman @ 15 – Mm-hmmm! Makes me think of some song lyrics:

    When a problem comes along
    You must NIRP it
    Before the cream sets out too long
    You must NIRP it
    When something’s goin’ wrong
    You must NIRP it

    My grandparents lived through the Great Depression and witnessed banks fail. They always had cash (and/or gold/silver coins, and even some silver certificates I got to see once) hidden at home.

    But When they say that my home is an investment, never did I imagine that it meant stuffing my mattress with $100 bills!

  17. 17

    RE: Marc @ 13 – I don’t refer buyer clients to BECU either, but I don’t recall a single delay situation with them, either on the buyer or seller side. In contrast there’s one mortgage company I’ve had about 4 transactions with on the seller side, and each time there has been a delay, although one was understandable (USDA). Even so, I have a hard time blaming that entity–I think it comes does to the individual LO you are dealing with. Some are good and some are bad in every larger entity. That’s one of the reasons why it’s often better for buyers to go with a loan officer suggested by their agent. Most agents know at least one good LO who can perform on time. Although a buyer’s agent following the progress of an unknown LO can also help avoid delays.

  18. 18

    Shop With a Pre-approved Mortgage Loan

    If you don’t get the house because of other buyers, at least you’re not wasting your time because you didn’t qualify for the loan anyway. Actually it should be a banking regulation, not an option.

  19. 19

    We Lost Canada’s Entire GDP in the January 2016 American Stock Market

    $1.78T. I’m sure the investors will now flock to safe Seattle real estate for an alternative safe haven. LOL….

    The negative bank saving interest rates proposal makes about as much sense as a $10/bbl gas tax with depleted consumer sales anyway…..Trump is right, were make brainless planning decisions that just make it worse.

  20. 20

    Japan is Always an Angel and in Seattle’s Best Real Estate Interest…..Not

    Snippet:

    “….Japan Wants to Build Boeing’s Next-Gen Commercial Plane….”

    http://fortune.com/2016/02/12/boeing-japan/

  21. 21

    My thoughts were the same as Tim’s when I saw the ad, but this just came in from a friend in NYC’s Newsletter. (He owns an Appraisal Company. Is not an agent.)

    “…the content seemed to be written by millennials who were attending middle school during the housing bubble but missed it all watching Nickelodeon. And yet Quicken Loans executives signed off on this and wrote checks for the advertising campaign.”

    He captured it well, I think.

  22. 22

    RE: Ardell DellaLoggia @ 21
    Yes Ardelle

    You and Tim described it correct…..most of the problems [perhaps all of them] in business today are using incompetent management that hires more of its kind for upward mobility. The slime rises to the top during a stressful economy. God forbid we have anyone that knows what they’re doing….they may take managements’ jobs from them.

    Sounds like its more than just Quicken too.

  23. 23
    Boxkicker says:

    I just applied for a preapproval from Quicken (among other mortgage lenders) a couple of weeks ago, as I am in the market for buying over here in Spokane using my VA loan benefits again.

    This Rocket app really is easy and it pulls your credit report, banking information, etc….so it really isn’t any different than many others I applied to. They do call you back and gather any other information that is pertinent to the application process.

    Overall, it wasn’t much different than some others I applied for, just quicker response and they gave me a preapproval letter in hours.

  24. 24

    On this topic, Annie Fitzsimmons just did a piece on whether a seller can reject an offer because the buyer is using a specific lender. Not sure why many agents would apparently think the answer to that question is no, but the answer is yes, per this video. Seems sort of obvious, but I guess a lot of bad information gets passed around from agent to agent.

    https://www.youtube.com/watch?v=RgSRwjRKcX0

  25. 25

    RE: Kary L. Krismer @ 24

    That is why the pre-approval may have to come from a lender the seller will accept, since that lender is not part of the agreement, and then switch to the best lender for the buyer. The buyer will be paying on that loan for up to 30 years, so clearly the buyer has a right to get his mortgage wherever, yet still show to the seller that they are qualified with one the seller likes better.

    The seller has the right to insist that the buyer be pre-approved through a lender they trust. The seller does not have the right to, after acceptance, cause the buyer to get a mortgage that is not in the buyer’s best interests. As long as, of course, the buyer comes to closing with the funds to close from the lender of the buyer’s choice who was not the pre-approval lender.

  26. 26

    RE: Ardell DellaLoggia @ 25 – The standard forms don’t deal at all with the buyer switching lenders, at least within the first 5 days, or even using the lender used on the pre-approval. That would require custom language. Most of that is addressed in the video.

    This gets back to the point I made to you in the prior thread on Form 22A. The seller can have two concerns–concerns about the lender and concerns about the buyer. They are interrelated, but the second concern is the far more serious concern. The seller wants to know that the buyer CAN get a loan. If the lender hasn’t done much to actually qualify the buyer there will be little assurance that the buyer can get a loan.

  27. 27
    April Lavine says:

    Hi,
    I agree with Marc above that a pre-approval from a credit union is not significantly better or worse than one from a conventional bank. I further agree with him that the client should be aware of the whole scenario and at the end, it should be the client’s decision.

  28. 28
  29. 29
    Andrew says:

    Hi all, long time lurker but new commenter.
    I got confused with The Tim’s write up here due to:
    – First, the title contains “Let’s Repeat the Bubble!”
    – And, all but last paragraphs attempt to draw parallels to sub-prime lending
    – However, Tim’s comment (to Kary’s) stating he didn’t say anything about lowered lending standards but only criticizing the ad for not solving issues with inventory shortage.
    All the comments are helpful explaining the nuances around mortgage lending, but I could use some pointers understanding the message the author wanted to deliver. Thanks in advance.

  30. 30

    Rocket Loans
    Because PhallicSymbolLoans.com was already taken.

    Re: Credit Unions.
    They run under a different type of charter compared with a bank. Credit Unions do what is in the best interest of their members. So sometimes doing the loan is not in the member’s best interest. Additionally, some credit unions are really good at mortgage lending, and some credit unions are really bad at it, or don’t do residential lending at all.

    Quicken Loans is currently in trouble with their WA State regulator for deceptive advertising. Getting a loan “with the touch of a button” could also be considered deceptive. Time will tell.

    http://www.dfi.wa.gov/news/press/dfi-charges-quicken-loans-inc-false-advertising-targeting-servicemembers

  31. 31
    GoHawks says:

    RE: softwarengineer @ 19 – 110 S&P point rally. Make the crash stop.

  32. 32
    Blurtman says:

    RE: Jillayne Schlicke @ 29 – Wow! Where has the DFI been all these years? Where were the robo signing indictments?

    In general, WA state has an appallingly bad record in prosecuting financial fraud. The King County investment pool was defrauded by brokers who peddled the bogus Cheyne and Mainsail investments to the fund managers. No one charged with fraud.

  33. 33

    RE: GoHawks @ 31
    Lest We Forget

    The DOW 18000 in the first half of 2015…..now its 16400?

  34. 34

    RE: Blurtman @ 32
    Even My Dentist Commits Fraud

    I rarely use the term fraud, but it applies to my ex-dentist. I paid the full cost of a crown and my insurance covered about $30 of it. They added $150 for the impression I already paid for and cashed the insurance check without giving it back to me when I asked for it…I paid the extra cost, got the crown glued in….then [after I got my crown] threatened their office with a visit from the Kent Police for fraud.

    I imagine I wasn’t the only victim. Some Dentist offices have apparently become desperate lately….watch ’em closely. Act like Trump and they give you your money [otherwise kiss it good-bye]….mine is delayed as a credit card credit this Thursday.

    The world is getting greedier every day….its sad when you have scream for your rights at a professional healthcare facility today or they ignore you.

  35. 35
    GoHawks says:

    RE: softwarengineer @ 33 – Agree the stock market has pulled back, just respectfully disagree that what we have experienced should be referred to as a crash. Seems a little dramatic.

  36. 36
    boxkicker says:

    It is far from a mortgage by a touch of a button. The whole thing with this process it is easier than many companies going thru the whole process of looking for a loan preapproval.

    I did the application via a smartphone. They tie in your credit report because you put in some PII information.

    The process is nothing any different than other sites, it is just quicker and easier!

  37. 37
    greg says:

    if I were applying for mortgages every few weeks or even months then perhaps speed would be a major factor. But for something that most people do at most a dozen times in a lifetime, who cares if it takes 10 mins or 1 hour. I would be much more concerned about rates , fees and reliable people.

  38. 38

    By boxkicker @ 36:

    The process is nothing any different than other sites, it is just quicker and easier!

    That very well could be, but “sites” suck. What sellers want to know is whether you will be able to get a loan, not whether some computer program thinks you can.

  39. 39

    Hi Blurtman,

    Anything having to do with robosigning or MERS would go to the AG’s office. Our State Supreme Court ruled on MERs in 2012. Here’s the SB post:

    http://seattlebubble.com/blog/2012/08/16/washington-state-supreme-court-mers-may-not-foreclose-unless-they-hold-the-note/

    I’m not familiar with the Mainsail or Cheyene events.

    With regard to residential lending, here is the DFI naughty list, showing administrative actions agains mortgage brokers and non-bank lenders (and also escrow companies, payday lenders, etc.)

    Checkout how DFI bitch-slapped Cash Call/Western Sky.
    http://seattlebubble.com/blog/2012/08/16/washington-state-supreme-court-mers-may-not-foreclose-unless-they-hold-the-note/

    We have an active mortgage fraud prosecution team that is located in the King County Prosecutor’s office. Each time a deed of trust is recorded, $1.00 goes to fund this team. They can prosecute mortgage fraud cases located anywhere in WA State. http://www.kingcounty.gov/Prosecutor/news/2014/july/mortgagefraud.aspx

  40. 40
    Blurtman says:

    RE: Jillayne Schlicke @ 39 – “Anything having to do with robosigning or MERS would go to the AG’s office.”

    I had contacted the AG’s office back in 2012 inquiring about robosigning prosecutions and prosecution of the brokers who sold the King County Investment Pool fraudulent securities. I received a form e-mall back warning citizens about misrepresentations that had been circulating regarding the mortgage fraud settlement with the TBTF’s. I.e., it is really a good deal for you.

    Persisting, I was booted up to an assistant AG who said the AG’s office does not have general criminal jurisdiction, and that they could not talk about what they were working on in any event.

    Here is an excerpt and link to how Merrill Lynch defrauded King County taxpayers. I was hoping our AG would defend it’s citizens, but that hope was in vain.

    “King County invested $153.5 million in Mainsail II, Rhinebridge, and Cheyne, “three SIVs, each of which enjoyed the top grades from S&P and Moody’s until weeks before they defaulted.”23 In July 2007, King County purchased $53.5 million of Mainsail II through Merrill Lynch for its King County Investment Pool. At the time of purchase, Mainsail II held Moody’s highest Prime-1 rating. Three weeks later, Moody’s downgraded Mainsail II “to its lowest rating.” Mainsail II failed to pay investors on August 31, 2007. The Metropolitan King County Council bought out the pool’s $53.5 million Mainsail SIV debt in August 2007 in order to protect local government investors. On September 12, 2007, Standard & Poor’s placed King County’s $100 million investment in the Rhinebridge SIV on negative watch. On October 19, 2007, Standard & Poor’s downgraded Rhinebridge to junk bond status. The Metropolitan King County Council had purchased Mainsail II debt with the understanding that the depreciation of the Mainsail II SIV was an aberration, but after the downgrade of the Rhinebride SIV, the Council was forced to send Mainsail II back to the King County Investment Pool, a move that placed $153 million in defaulted debt in the pool.24 On October 4, 2007, Moody’s downgraded King County’s $50 million investment in the Cheyne SIV from the highest rating to “Not Prime.”25 King County “received a $9 million distribution from Cheyne’s receivers in April 2008.”26

    http://www.imla.org/images/stories/pdf/Events/2009MYS/papers/benson%20and%20briol%20investment%20losses%20facing%20municipalities.pdf

  41. 41
    Blake says:

    RE: Blurtman @ 40
    Nice efforts Blurtman… unfortunately, the WA AG office seems to be cut from the same cloth as the national AG/Dept of “Justice!”
    http://neweconomicperspectives.org/2016/02/inaugural-financial-fraud-lemons-week-award-goes-doj.html#more-10036
    “The second lemon is for failing to admit that DOJ held no Morgan Stanley official “appropriately accountable” while claiming that its settlement did the opposite. Delery claims that DOJ “will not tolerate those who seek financial gain through deceptive or unfair means.” The settlement proves the opposite, for DOJ “tolerated” Morgan Stanley’s senior officers being made wealthy through leading a massive fraud scheme – with zero accountability imposed on those officers. Delery claims DOJ “will take appropriately aggressive action against financial institutions that knowingly engage” in fraud. A “financial institution,” cannot “knowingly engage” in fraud except through vicarious liability for the actions of its officers. Delery is admitting that Morgan Stanley’s officers “knowingly engage[d]” in fraud and became wealthy by doing so, but DOJ took no “action against” those officers, much less “aggressive” prosecutions.

    The third lemon was awarded for Mizer’s claim that DOJ’s settlement with Morgan Stanley proves that “those who contributed to the financial crisis of 2008 cannot evade responsibility for their misconduct.” There is the small discordant note that the settlement meant that those senior Morgan Stanley officers that led the epidemic of fraudulent sales of mortgage product that were one of the three great fraud epidemics that caused the financial crisis have, as with every DOJ settlement, entirely “evade[d] responsibility for their misconduct.” DOJ, once more, refused to prosecute these elite frauds, did not require that they be fired, did not require them to give back their bonuses and other compensation that they received due to fraud, did not sue them, and did not even name them. “

  42. 42
    boxkicker says:

    RE: Kary L. Krismer @ 38

    I applied 3 places for VA loans and all gave me Preapprovals…Quicken (using their app) being one of them.

  43. 43
    Blurtman says:

    By Blake @ 41:

    RE: Blurtman @ 40
    Nice efforts Blurtman… unfortunately, the WA AG office seems to be cut from the same cloth as the national AG/Dept of “Justice!”

    Yes, it is true that the WA state AG has made zero effort to prosecute. Even the examples Jillayne sites are more about protecting financial institutions against fraud, and not protecting consumers against the financial institutions.

    That being said, King county has taken the dirtbag Merrill Lynch organizations to court in an attempt to recover their monies. (Case No. # 2:10-cv-01156-RSM.) The sad fact is that these hits to the budget cause a cutback in services. Who can say if a life or lives may have been saved, if, for example, Child Protective Services’ funding was not cut back because of the fraud?

    The game these criminals played is let’s dump this toxic mortgage garbage, we know how bad it is, and we have to unload it. Let’s knowingly dump it into an SIV and sell it before it craters. Our friends at Moody’s have let us know about the upcoming downgrades, heck, we are the ones who told them how lousy this was. And they have played ball and rated this garbage Triple A. So let’s unload it ASAP.

    An no one goes to jail. And the people get fleeced and pay the price.

    “According to the lawsuit, the investments in question came from entities known as Mainsail II and Victoria Finance. Mainsail was formed in the Cayman Islands in March 2006, the lawsuit says, and was backed almost entirely by risky mortgages. King County says just three weeks after Merrill sold it $50 million worth of Mainsail commercial paper, the enterprise began to collapse. The next month – September of 2007 – credit rating agencies placed Victoria on a negative credit watch and later downgraded it to “junk” status,”

    “Losses from these supposedly low risk money market investments are in excess of $60 million,” the lawsuit says. “Simply put, the risks embedded in this commercial paper, and the assets underlying it, were dramatically mispriced…Merrill was aware of the toxic nature of the assets underlying the paper; King County was not.”

    http://www.seattlepi.com/local/article/Lawsuit-Merrill-Lynch-sold-King-Co-toxic-897241.php

  44. 44

    By boxkicker @ 42:

    RE: Kary L. Krismer @ 38

    I applied 3 places for VA loans and all gave me Preapprovals…Quicken (using their app) being one of them.

    You’re missing my point entirely. The point is whether your preapprovals are going to be something that a seller is going to think is worth something.

    As I tried to state earlier, real estate agents before this ad were already concerned about some bank’s processes in issuing preapproval letters. Banks don’t really care if they issue 100 preapprovals and then can only fund 80 of them, because they’re funding 80 loans. A seller who gets into contract with one of the 20 does care.

  45. 45
    Boxkicker says:

    By Kary L. Krismer @ 44:

    By boxkicker @ 42:

    RE: Kary L. Krismer @ 38

    I applied 3 places for VA loans and all gave me Preapprovals…Quicken (using their app) being one of them.

    You’re missing my point entirely. The point is whether your preapprovals are going to be something that a seller is going to think is worth something.

    As I tried to state earlier, real estate agents before this ad were already concerned about some bank’s processes in issuing preapproval letters. Banks don’t really care if they issue 100 preapprovals and then can only fund 80 of them, because they’re funding 80 loans. A seller who gets into contract with one of the 20 does care.

    Already went under contract, but going with another lender vice Quicken Loans.

    It’s a new build inventory home that I was able to customize to a point, so seller really didn’t care much.

    The house is going up anyway, even if financing falls thru. The financing contigency is in there, so no harm…no foul….

  46. 46

    RE: Blurtman @ 40
    What a Bunch of Bank Fraud our Establishment Dem/Reps Overlook

    Remember you vote in secret, so you don’t have to worry that a vote for Trump will get you fired from your open border establishment bosses supporting this fraud. Ask ’em in Hollywood…

    https://twitter.com/BretEastonEllis/status/701300328675700736

    Become a closet Trump supporter. Trump is even calling rich people who get Social Security that shouldn’t fraud, they don’t need it. But he totally supports the signed contract deal to the bottom 95% or those who really need Social Security and Medicare.

  47. 47
    GoHawks says:

    RE: softwarengineer @ 46 – the great stock market crash continues today.

  48. 48

    RE: GoHawks @ 47
    How Do We Know CEOs of Their Own Company

    Aren’t buying their own stock to mimic a rally? I heard it as a STRONG possibility, but Trump is always wrong…..LOL

  49. 49

    Hi Tech Wants Brainless Robots That Always Obey?

    MSFT too….snippet:

    http://www.theverge.com/2016/2/22/11087890/mark-zuckerberg-mwc-picture-future-samsung

    High school kids can do computer programming…..its technically way over-rated and provides hardly any of the millions of real ENGINEERING jobs we send to Japan, Mexico and China……ask Trump. Bill Gates did it GREAT with just a high school diploma. What does he know about hiring ENGINEERS?

  50. 50

    New Homes Gotta Plummet 30-50% Due to $30/bbl Oil in 2016?

    Apparently so, so what they gave us $1.66/gal gas now [we’re SAVING the savings anyway]…..I still see milk at $3+/gal and no inflation? LOL, they shrunk all the packages to keep the prices the same. I see new cars plummetting 30-50% in price in 2016 because of cheap oil….your wages and pensions too.

    They predict now oil may start to rise by 2017. Pay off that mortgage and get out of debt now is my advice.

  51. 51
    Blurtman says:

    RE: softwarengineer @ 46 – I think it is clear that the popularity of Trump and Bernie is an indication of dissatisfaction with the corrupt status quo. I don’t think Americans died only for the right to hold your nose while you vote, or died for the right to vote only for the candidates of powerful special interest groups.

  52. 52

    In the current climate where multiple offers may be the “norm”, I think it’s critical that home buyers work with a loan officer who has a solid reputation. This can be the difference between having your offer accepted over other offers.

    I believe that listing agents and sellers also prefer to have a lender who is local. If something goes wrong with the transaction, if the loan officer is in Texas, and they’re gravy fed deals from the companies mega commercial campaign, they’re just there to take applications. They don’t have a personal reputation on the line and, if you are dissatisfied with their service, another 10 applications are waiting.

    I don’t think agents or sellers care how big a lender or credit union is. Does the credit union or bank LO work 9 to 5 – will they answer your emails after hours?

    When selecting a mortgage company or loan officer, please visit http://www.nmlsconsumeraccess.org to check out the loan officer. This will give you their employment history – did the LO work at Taco Time two months ago? …nothing against Taco Time :)

    I think there may be cases when internet lenders may be a good option…just not for purchases IMO – there’s too much on the line.

  53. 53

    RE: Rhonda Porter @ 52 – Thank you Rhonda. Good point on the local lender. That is probably often true.

  54. 54
    Marti Cohen says:

    When you start seeing 25 year old real estate agents falsely advertising themselves on Zillow as having “extensive background in finance, contracts and negotiation, as well as luxury real estate” when they just got their license 6 months ago and have sold three condos and a couple of single family homes it is time to worry folks, we have one heck of a bubble on our hands.

    If it quacks like a duck, walks like a duck, and smells like a duck….

Leave a Reply

Use your email address to sign up with Gravatar for a custom avatar.
Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Please read the rules before posting a comment.