No Wonder He is Buying up Downtown, Casinos and Sports Teams.

[finster]

How much control does the industry attempt to exercise over the schenanigans I've personally witnessed in some mortgage companies? Granted, it was during the boom, but that was the only time I was lobbied fiercely to buy property. The words my old high school buddy uttered had something to do with fogging a mirror to qualify. I told him if his industry was writing loans to those like me, doom was coming, and it did.

But the stuff I learned about their cash-only last-minute loans to cover bullshit fees dropped onto unsuspecting people trying to finally buy into the American Dream at the CLOSING...which amounted to loan-sharking, which the agents were profiting quite well off the books from...made me never, ever want to approach that game again.

It was no surprise that most of the agents used to be in car sales, either. High pressure crap over probably the biggest purchase in that couple's life...please tell me you've never witnessed anything like this and the industry has suddenly become run by angels.

Cheers,
John

Welcome back.

I too also wondered why Quicken Loans didn't blow up sky high like Countrywide, etc. Remember their incessant [[and annoying) advertising? I always wondered what the untold story was that had to be out there somewhere.

[Shollin]

I too also wondered why Quicken Loans didn't blow up sky high like Countrywide, etc. Remember their incessant [[and annoying) advertising? I always wondered what the untold story was that had to be out there somewhere.

Countrywide was a subprime lender. The entire subprime industry is almost non-existent anymore.

[Gannon]

I too also wondered why Quicken Loans didn't blow up sky high like Countrywide, etc. Remember their incessant [[and annoying) advertising? I always wondered what the untold story was that had to be out there somewhere.

Whoa. Don't toss a conspiracy out when I'm in mid-rant...

[Shollin]

Countrywide and Quicken really aren't the same. Subprime companies like Citifinancial [[not to be confused with CitiMortgage) will borrow money at 4-5% and then loan it out to high risk customer at 7-9%. They do not have the backing of investors like Fannie Mae and Freddie Mac and are dealing with a much riskier group of borrowers.

[Shollin]

Shollin... Its a lot more than what you are saying. I work in the mortgage business. Depending on the type of loan, the lender earns usually between 1% and 4% of the loan amount. That comes from Fannie, freddie, or from the FHA. On top of that, they will earn any additional origination fees [[which most loans have). If the lender continues to service the loan [[ which QL does), they earn a certain percentage of each month's interest payment.

I am talking about the servicing rights and not the origination fees. I too work in the mortgage industry. I even at one time worked in the investor relations department.