Mortgage Loan Us Mortgage Process And Brokerage [mortgage-scam.blogspot.com]
Follow us @ twitter.com twitter.com Welcome to Capital Account. On today's show, we have a story you may have not heard before, from a person that you have definitely not heard from before. It's a story about America's financial crisis, its mortgage crisis, and the foreclosure fraud that enveloped the United States during the past decade. That person is Lan T. Pham, the famous CBO whistleblower who was fired from her job for telling the truth about systemic fraud and corruption in America's mortgage market and financial system. In the past century, real estate law and transactions related to real estate and mortgage financing in the US have been subject to state regulations, with mortgage documents recorded at the county level. This worked relatively well in the traditional mortgage market that we had for most of America's history; the bank that issues the mortgages keeps the loan on its books until maturity. However, this made difficult, if not impossible, the type of financial engineering of mortgages that we saw during the securitization and refinancing credit boom of the past decade. This refers, of course, to the slicing and dicing, the repackaging and selling of homes into mortgage backed securities (MBS) and collateralized debt obligations (CDO'S) that underpinned the credit bubble of the 2000's that end with the financial crisis of 2008. The reason why traditional mortgage practices made securitization difficult is, in part, because every time a financial product ...
mortgage-scam.blogspot.com Capital Account TV Exclusive Interview of CBO Mortgage Fraud Whistleblower!
(Reuters) - Lenders like Bank of America Corp and Wells Fargo & Co say they are facing mounting pressure to buy back bad mortgages they sold to investors, signaling that banks' home-loan headaches could continue for years. Investors like Fannie Mae and ... U.S. banks haunted by mortgage demons that won't go away
The term “mortgage†is French in origin. It means “dead pledgeâ€, suggesting that the pledge or liability dies at the fulfillment of the obligation or the re-possession of the property in case of default.
A “Mortgage loan†is actually that loan which is secured by the property, using a “mortgage note†which is a proof of its being. This note has terms and conditions with the option of repossession of the property in case the mortgagor’s default. These days the term “mortgage†is frequently used in place of “mortgage loanâ€
Any person who intends to buy a loan for the purchase of the property or secure against it, can get the loan from different financial institutions such as banks. This loan can be obtained directly or with the help of brokers.
The other characteristics of the mortgage loans like the interest rates, size of the loan, maturity, pay off methods etc. may vary.Basis of loan variation from place to place:
There are a variety of mortgage loan types available in different countries owing to the different legal regulations. The following features of the mortgages are the basis of difference:
Rate of interest can be low or high. It may be fixed or may vary with the time which is predefined. Consequently we have fixed rate and adjustable or floating rate mortgage.
* Term or duration of the loan also varies, leading to different types.
* Payoff methods, repayment amount and their frequency also vary from country to country.
In many countries a particular type of loan becomes the only type of mortgage loan.
For Example, in USA floating loan mortgage is normally practiced. Someone is looking for a mortgage loan; he has to meet any lender. Suppose he meets Mortgage lender Cincinnati, to discuss the loan. Without mentioning the type of loan, he will be given information related to Floating rate mortgage only.Mortgage Process in USA:
In USA, the process of securing a loan by the borrowers is called is called origination. The process involves submission of the loan application and the documents of his financial history to be reviewed by the financial institution directly or, sometimes, a third part is also involved.
This process is controlled by laws like “Truth in Lending Act†and “RESP Act of 1974†in addition to other regulations.
The type of financial history determines which category the applicant falls into.
Each category has different rates of interest and terms and conditions. Loans given can be prime, subprime, NINJA etc.
USA Mortgage Brokerage
These act as a third party to assist and guide in the origination of loans or securing a property loan.
As per the research of WAM research and consulting, the number of brokerage companies in USA is around 55000, which are involved in brokerage of mortgage. These employ more than 418700 employees. Their involvement in origination of 68% of the house loans shows their influence in the business. There are a lot of regions where a lot of brokerage houses have done a great job like in the Ohio State especially mortgage brokers Cincinnati.
This is regulated by ten federal and around fifty state laws. These brokerage houses have played a great job in increasing the business of the banks. Additionally, they have successfully outsourced the job of finding the financial background of the people and have also helped the financial institutions in the application of laws at the time defaults.
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