The Mortgage Blog

Well first of all I would like to thank all of you who either called or emailed me on what some considered an inspirational blog (last months blog).  And to my lovely wife Nancy, yes it was me who wrote it, not a ghost writer. 

Ok well now it's back to business and my business is helping families with the biggest purchase of their life.  So my question is... since when has $50,000  for any product been considered small? It is absurd that we are paying that for automobiles but if you try to purchase a home for $50,000 many borrowers are turned away or ignored. Why?  Well you can thank our Government.  It's a current banking law called Section 32 or Part 41.  I am not going to bore you with the details (google it) but it goes something like this, our Government thought that too many consumers were being misled through out the mortgage process.  They also believed that many may have paid too much for their home financing.  So in their opinion the door was wide open for fraud.  Or lets back it down a bit, how about maybe over paying.  That's right over paying.  I do it regularly by choice. And it should be your choice not the Governments.  I am all for easier to read, consumer friendly forms, but I am not for regulating what any industry can charge for a profit (we all have the power to walk down the street and check out the competition).  When you buy a pair of jeans, appliance or any other item, do you ask to see what the retailer paid for them?  When you buy a steak at a restaurant do you ask what their cost was? Of course not, and if in your profession, if your customer wanted to to see "your books" before they buy you would realize how ridiculous this is.  

So why do I regularly pay more for my product or service?  Because I truly believe that "good things aren't cheap and cheap things aren't good".  I would much rather conduct business with a seasoned professional, and in my opinion it is unrealistic to expect fast food price's with gourmet service. I am a realist. Do not let the Government decide what you should pay for a service or product because all Lenders and loan officers are not the same.  

  Now lets get back to my main topic for just a minute.  You are a first time homebuyer, just like I was 20 plus years ago. My first home cost $50,000 and I loved it, I loved the independence, I loved owning, and I felt proud.  Lets fast forward to today.  I truly want my customers to feel those same emotions that I felt.  We all need to start somewhere and for me, that was my starting point.  Unfortunately today because the Government feels that low to moderate family's are being "taken advantage of" they no longer allow mortgage companies to make a profit on these loan sizes so most companies just don't offer them anymore.  Is that helping the low to moderate buyer?  Does Washington understand that these laws have actually decreased home ownership?  When Lenders can't make a profit in a certain market they just ignore it.  Want proof, try to get a call back on a $35,000 loan amount. 

If you feel you are not getting the appropriate level of service I do have a fix... call or write your senator, call the Governor of your state, let them know how frustrated you are when you try to apply for a mortgage under $50,000.  Let them know you are not getting the attention you deserve, or the guidance that should be expected when you make such a life purchase. Don't get mad at your loan officer because after all, they are just following the guidelines our Government put in place. 

I will say it again, when was $50,000 considered chump change.

Feel free to email directly at john@centerpointemortgage.com I will try to respond to each and every one of your emails.