Marc Brinitzer's (merlin) Blog

What’s next for the mortgage lending industry, beset by deepening accusations of predatory lending and mortgage fraud? Well, several states are considering the creation of suitability standards, similar to what stock brokers and investment advisors live with in the securities industry. If this m...

It’s an ugly fact of life in a declining real estate market. Real estate appraisers are under pressure from all sides. Here’s a recent article I saved. Daily Real Estate News | February 2, 2007 Appraisers Get Pressured to Falsify Findings The pressure is on property appraisers to come up with th...

There is a famous story about legendary Bluesman Robert Johnson. It is said that while travelling up and down the Mississippi Delta, he met the Devil at a crossroads and sold his soul in exchange for musical genius. Taking an Option ARM—a neg am loan by its former name—is like selling your soul ...

In the eye of the hurricane, where mortgage fraud mixes with over-inflated real estate prices, lies the stated income loan. For those unfamiliar with this bit of mortgage slang, stated income loans allow a borrower to claim a level of income they don’t have to prove. How’s that for temptation?? ...

  This excerpt comes directly from an Old Republic Credit Services monthly newsletter. It underscores what I’ve been telling clients. Mortgage credit reports and consumer credit reports use different scoring models to generate credit scores. Consumer credit scores are notreliable when planning f...

It’s not that I want to keep beating the mortgage fraud drum, it just keeps falling into my lap.  Furthermore, I figured that as a mortgage broker with almost two decades of experience, I could easily steer clear of trouble.  After all, if I can’t recognize mortgage fraud, who can?   But today I...

I am frequently asked these days about buying “short-sales”.  Seems like a good buying opportunity.  After what happened this week, I’m not sure anymore. Nearly everyone knows what a short-sale is by now.  But just in case, a short-sale is a home listed for sale that, when sold, will not yield e...

The benchmark 30 year fixed rate mortgage climbed  higher again this week, ending at 6.125% with 1 point. Behind the Numbers The week was a bag of mostly positive economic news, further eroding hopes of a Fed rate cut anytime soon.  After briefly crossing 4.9% for the first time since August, th...

What effect will “short sales” have on a borrower’s credit and ability to secure another home loan?  Without the public Notice of Default that precedes a foreclosure and notifies the credit bureaus, will “short sales” slip under the automated underwriting radar?     In my earlier post Short Sale...

Nice to see a lender take such pro-active measures to help borrowers avoid going into default. I’ve been waiting to see how various lenders would respond to this market. You would to call this the most enlightened response yet. From the Sacramento Bee this morning: Lender counsels those in troub...