I have been in the mortgage business for more than three years. In that time, I have come to realize that there isn’t much that makes sense about the way that we (banks, underwriters, regulators and loan agents) operate. For those of us that exist in a world where logic and common sense trump acquiescence and rule following, the process of getting a mortgage can be extremely exasperating.
We ask clients for things that we already have from them just because it is missing page 11 of 11 (which undoubtedly is blank). We fund your loan and then come back months later to ask a question about a deposit (which undoubtedly is clearly labeled). We make you sign pages and pages of disclosures that alert you to your ‘rights’ as a borrower but then prevent you from making any changes (which undoubtedly would benefit you). It makes no sense…and sometimes we, the loan agent, understand the reasoning behind it no better than you, the borrower.
Compliance is the buzzword behind everything that takes place in the mortgage industry. It drives the whole business model in this day and age (well, that and profits…but we can save that for later).
This blog is an attempt to fight through the many obfuscations and inconsistencies in this maddening industry. I will attempt to explain much of what we do (well, at least what is explainable) and talk about changes, trends and forecasts for this crazy, but crucial, part of the real estate market.
I decided to start this site to give voice to some of my failures, triumphs, frustrations and musings…but I also want to explain in an easy-to-understand fashion this nutty business. I have a deep and insatiable desire to comprehend the world in which we live. I have a background in writing and I spent two years teaching the English language (another task that at times makes little sense and has it’s own set of hard-to-fathom rules). None of this makes me ‘qualified’ to blog about lending but all of it, taken together, will hopefully make this endeavor of some value to those that will take the time to read it.
I also hope that my thoughts, beliefs and personality come through in these posts. I don’t have a background in economic theory. I haven’t been in the business for decades. I am not ashamed to admit that I am still learning about what goes into pricing, hedging and market distortions. I hope I am, however, pretty good at explaining the elements of this business that effect our lives (rates, regulations, credit reporting, appraisals, taxes, insurance etc…) and willing to share some of the lessons that I have learned.
This blog will give expression to my thoughts on the lending industry and how it affects both of our lives (lender and borrower). For that reason, you will get a bit more than just updates on rates. You can expect to hear about my travels, my love of sports, my peculiar (and a bit grotesque) interest in World War II and my love for the city in which I was born and raised, Oakland California.