Tuesday, May 31, 2011
New Opportunity for Loan Consultants with NMLS Identifier
If you are looking for a home with great technology, great pricing, all the products you desire, brick and mortar for your client meetings in a high end office, fantastic processing, AND leads, AND a draw, AND benefits, then please shoot me an email to michael.foote@caliberfunding.com and I will share the details.
Friday, May 20, 2011
SBA Lending is back
In another sign of improving business climate, SBA Chief Karen Mills talks about the rebirth of SBA Lending. Click Here to Read More.
If you are a small business owner and are interested in finding out more about SBA loans, please give me a call at 949-584-4600 and ask for Michael Foote. We can discuss your business needs and see what programs are best suited for you and your future.
If you are a small business owner and are interested in finding out more about SBA loans, please give me a call at 949-584-4600 and ask for Michael Foote. We can discuss your business needs and see what programs are best suited for you and your future.
Friday, May 13, 2011
Ethics?... Morals? ...
The definitions of ethics and morals are below for you review, but I believe most of us know what the definitions of those words are, or at least have a vague notion of their connotation.
In my industry many of us have had to take courses specifically focused on teaching us about the ethical moral considerations in the real estate and mortgage businesses. Realtors, specifically, are required to adhere to a specific set of ethical and moral behavior.
Of course many Realtors don't believe in actually applying these ethical and moral considerations in their business practices. You mean I have to show my seller ALL the offers, for reallies! But I have a buyer too, and I can double-end the deal??? What is a real estate agent to do. Well how about doing the right thing dammit!
It's my belief that, for many, ethics and morals are topics they need to know so they answer questions on their real estate agent examination. By the way the process for obtaining a real estate license is about as easy as it was to get a stated income loan in 2005...Pulse, check, Signature check, Willing lender, Check check! Honestly I think the DMV's written test may be more difficult.
So why am I blowing the whistle on my own peers? I mean its tough out there. People are just trying to get by. Because the disease of greed seems to have gotten a bit worse in some respects, or has it?
It seems the mortgage business is much more legitimate these days, with the elimination of certain products, a redonkulous expansion of disclosure requirements, very tight caps on commissions and the fact the feds will put your cute little butt in federal F-you in the a## prison. Mortgage companies, banks, and brokers seem to get it...Or do they?
Law enforcement and industry reporting indicate that mortgage fraud activity continued to increase in 2009 and 2010. FBI mortgage fraud pending investigations increased 71 percent from 2008 to 2009. HUD-OIG pending investigations increased 31 percent from 2008 to 2009. FBI mortgage fraud-related FinCEN SAR filings increased 5.1 percent from 2008 to 2009.
OK so maybe the mortgage business is still working on itself....
But surely the real estate community has improved itself?
http://www.fbi.gov/boston/press-releases/2011/two-defendants-sentenced-in-real-estate-scam
Google "Real Estate Fraud" and you get 36,600.000 results...Ok that's not fair because I googled "Cupcake Fraud" and still get 7,690,000 results
OK, so maybe the real estate community is still working on things too...
So what have we learned...the mortgage and real estate industries will always have a few bad apples at least - probably more like half the barrel in reality. But what about the rest of them/us. Well short of committing an actual crime, there are ethical and moral boundaries. These apply to ONLY REALTORS® and I'm not going to type the registered sign everytime either, so if I say Realtor I mean REALTOR®. So let's talk a look at a few as they are good rules for all: The complete list can be found here.
Standard of Practice 1-5 : REALTORS® may represent the seller/landlord and buyer/tenant in the same transaction only after full disclosure to and with informed consent of both parties. (Adopted 1/93)
This one is a classic and I was able to see it broken first hand today. Do you really think a Realtor or real estate agent or broker can truly represent both the buyer and a seller in a transaction? Well maybe, I am sure it can happen...sometimes...maybe.. But this should not be allowed. Does a sports agent represent both the team and player? Does a divorce attorney generally represent both the husband and wife (husband/husband or wife/wife in Massachusetts)? Does a alleged criminal mind if the prosecuting attorney represents him too? Seriously folks, if you let a broker, agent or Realtor represent both side, be prepared to lose.
Standard of Practice 1-6 : REALTORS® shall submit offers and counter-offers objectively and as quickly as possible. (Adopted 1/93, Amended 1/95)
Another timeless classic. What is better, an offer from a true third party represented by a Realtor not related to the listing agent or an offer from the listing agent? Well that certainly depends on who you ask doesn't it? What is the listing agent brings an offer in from one of his buyers? It happens, not all the time but it goes on...And this counts if the listing agent used the name of his wife, sister, brother, uncle, aunt, college frat brother, or any other moron that will rent his/her license and share his/her side of the commission with the listing agent.
If a Realtor, agent, broker has an offer from a client they represent for a property they have a listing on, that amounts to a potential 100% increase in their commission. The deal I saw today, amounted to an extra $18,000 dollars into the pocket of the listing agent, not to mention the bonus/spiff/pop/desk fee the agent received from the mortgage company he/she referred the loan to, because the rate being offered is well above the rate I saw quoted from another "lender".
If you were making an offer on that property and weren't being represented by the listing agent, do you really, honestly,ever think your offer has a chance. Maybe...but I would bet $18,000 you would lose out. "Sorry, we went with highest and best"..and the shocker...The listing agent is the ONLY one who knows what the next highest and best offers were and guess what, you just missed it.
I will finish with Articles 4, 5, and 6, wherein my day ended finally and again resulted in a pretty frustrated yours truly left holding the bad and a stakc of paper and wasted toner. I'm not a hater, I don't want to lie cheat and steal. So if someone is willing to do that to beat me out, and the client is too stupid to realize it, then I guess that is what it is.
Article 4 : REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative. (Amended 1/00)
Standard of Practice 4-1 : For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORS® prior to the signing of any contract. (Adopted 2/86)
Article 5 : REALTORS® shall not undertake to provide professional services concerning a property or its value where they have a present or contemplated interest unless such interest is specifically disclosed to all affected parties.
Article 6 : REALTORS® shall not accept any commission, rebate, or profit on expenditures made for their client, without the client’s knowledge and consent.
When recommending real estate products or services (e.g., homeowner’s insurance, warranty programs, mortgage financing, title insurance, etc.), REALTORS® shall disclose to the client or customer to whom the recommendation is made any financial benefits or fees, other than real estate referral fees, the REALTOR® or REALTOR®’s firm may receive as a direct result of such recommendation. (Amended 1/99)
Standard of Practice 6-1 : REALTORS® shall not recommend or suggest to a client or a customer the use of services of another organization or business entity in which they have a direct interest without disclosing such interest at the time of the recommendation or suggestion. (Amended 5/88)
When a Realtor, agent or broker receives compensation, a bribe, fake desk rental fee, bogus marketing agreement, or cash in a paper bag, in return for referring clients to these companies WITHOUT full disclosure you have violated your ethics as a Realtor and RESPA. Hell even with full disclosure this is wrong. It's actually wrong even if it's disclosed and the money came in a paper bag. But you get the point.
When a Realtor, agent or broker unjustly disparages a mortgage company or a professionally licensed originator, knowingly, to the detriment of your client, you've violated your ethical code and violated RESPA.
When a Realtor, agent or broker takes a short sale listing and misrepresents the parties of the transaction to a state or federal bank, they've committed bank fraud and wire fraud. When a Realtor, agent or broker misleads a buyer into taking a more expensive loan from a related company or connected third party to line his/her own pockets, they've committed a federal crime, Truth In Lending, RESPA, Business and Professions Laws, California Real Estate Law....and probably a whole host of other crap an prosecutor can lay on you.
And so I say to the, Future Defendent #1, be prepared to be prosecuted and go to jail.
And when that day comes, please know I will NOT be able to put money on your books. But please say hello to Mr. Madoff. He's kind of butch and maybe you can be his next back door deal. I know you won't like it, because I didn't enjoy it today.
Say hello to Bubba for me.
********************************************************************************
Learn it, Live it, Love it!
ethics — n
1. ( functioning as singular ) See also meta-ethics the philosophical study of the moral value of human conduct and of the rules and principles that ought to govern it; moral philosophy
2. ( functioning as plural ) a social, religious, or civil code of behaviour considered correct, esp that of a particular group, profession, or individual
3. ( functioning as plural ) the moral fitness of a decision, course of action, etc: he doubted the ethics of their verdict
moral –adjective
1. of, pertaining to, or concerned with the principles or rules of right conduct or the distinction between right and wrong; ethical: moral attitudes.
2. expressing or conveying truths or counsel as to right conduct, as a speaker or a literary work; moralizing: a moral novel.
3. founded on the fundamental principles of right conduct rather than on legalities, enactment, or custom: moral obligations. capable of conforming to the rules of right conduct: a moral being. 5. conforming to the rules of right conduct ( opposed to immoral): a moral man. 6. virtuous in sexual matters; chaste. 7. of, pertaining to, or acting on the mind, feelings, will, or character: moral support. 8. resting upon convincing grounds of probability; virtual: a moral certainty. COLLAPSE
–noun
9. the moral teaching or practical lesson contained in a fable, tale, experience, etc.
10. the embodiment or type of something.
11. morals, principles or habits with respect to right or wrong conduct.
In my industry many of us have had to take courses specifically focused on teaching us about the ethical moral considerations in the real estate and mortgage businesses. Realtors, specifically, are required to adhere to a specific set of ethical and moral behavior.
Of course many Realtors don't believe in actually applying these ethical and moral considerations in their business practices. You mean I have to show my seller ALL the offers, for reallies! But I have a buyer too, and I can double-end the deal??? What is a real estate agent to do. Well how about doing the right thing dammit!
It's my belief that, for many, ethics and morals are topics they need to know so they answer questions on their real estate agent examination. By the way the process for obtaining a real estate license is about as easy as it was to get a stated income loan in 2005...Pulse, check, Signature check, Willing lender, Check check! Honestly I think the DMV's written test may be more difficult.
So why am I blowing the whistle on my own peers? I mean its tough out there. People are just trying to get by. Because the disease of greed seems to have gotten a bit worse in some respects, or has it?
It seems the mortgage business is much more legitimate these days, with the elimination of certain products, a redonkulous expansion of disclosure requirements, very tight caps on commissions and the fact the feds will put your cute little butt in federal F-you in the a## prison. Mortgage companies, banks, and brokers seem to get it...Or do they?
Law enforcement and industry reporting indicate that mortgage fraud activity continued to increase in 2009 and 2010. FBI mortgage fraud pending investigations increased 71 percent from 2008 to 2009. HUD-OIG pending investigations increased 31 percent from 2008 to 2009. FBI mortgage fraud-related FinCEN SAR filings increased 5.1 percent from 2008 to 2009.
OK so maybe the mortgage business is still working on itself....
But surely the real estate community has improved itself?
http://www.fbi.gov/boston/press-releases/2011/two-defendants-sentenced-in-real-estate-scam
Google "Real Estate Fraud" and you get 36,600.000 results...Ok that's not fair because I googled "Cupcake Fraud" and still get 7,690,000 results
OK, so maybe the real estate community is still working on things too...
So what have we learned...the mortgage and real estate industries will always have a few bad apples at least - probably more like half the barrel in reality. But what about the rest of them/us. Well short of committing an actual crime, there are ethical and moral boundaries. These apply to ONLY REALTORS® and I'm not going to type the registered sign everytime either, so if I say Realtor I mean REALTOR®. So let's talk a look at a few as they are good rules for all: The complete list can be found here.
Standard of Practice 1-5 : REALTORS® may represent the seller/landlord and buyer/tenant in the same transaction only after full disclosure to and with informed consent of both parties. (Adopted 1/93)
This one is a classic and I was able to see it broken first hand today. Do you really think a Realtor or real estate agent or broker can truly represent both the buyer and a seller in a transaction? Well maybe, I am sure it can happen...sometimes...maybe.. But this should not be allowed. Does a sports agent represent both the team and player? Does a divorce attorney generally represent both the husband and wife (husband/husband or wife/wife in Massachusetts)? Does a alleged criminal mind if the prosecuting attorney represents him too? Seriously folks, if you let a broker, agent or Realtor represent both side, be prepared to lose.
Standard of Practice 1-6 : REALTORS® shall submit offers and counter-offers objectively and as quickly as possible. (Adopted 1/93, Amended 1/95)
Another timeless classic. What is better, an offer from a true third party represented by a Realtor not related to the listing agent or an offer from the listing agent? Well that certainly depends on who you ask doesn't it? What is the listing agent brings an offer in from one of his buyers? It happens, not all the time but it goes on...And this counts if the listing agent used the name of his wife, sister, brother, uncle, aunt, college frat brother, or any other moron that will rent his/her license and share his/her side of the commission with the listing agent.
If a Realtor, agent, broker has an offer from a client they represent for a property they have a listing on, that amounts to a potential 100% increase in their commission. The deal I saw today, amounted to an extra $18,000 dollars into the pocket of the listing agent, not to mention the bonus/spiff/pop/desk fee the agent received from the mortgage company he/she referred the loan to, because the rate being offered is well above the rate I saw quoted from another "lender".
If you were making an offer on that property and weren't being represented by the listing agent, do you really, honestly,ever think your offer has a chance. Maybe...but I would bet $18,000 you would lose out. "Sorry, we went with highest and best"..and the shocker...The listing agent is the ONLY one who knows what the next highest and best offers were and guess what, you just missed it.
I will finish with Articles 4, 5, and 6, wherein my day ended finally and again resulted in a pretty frustrated yours truly left holding the bad and a stakc of paper and wasted toner. I'm not a hater, I don't want to lie cheat and steal. So if someone is willing to do that to beat me out, and the client is too stupid to realize it, then I guess that is what it is.
Article 4 : REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative. (Amended 1/00)
Standard of Practice 4-1 : For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORS® prior to the signing of any contract. (Adopted 2/86)
Article 5 : REALTORS® shall not undertake to provide professional services concerning a property or its value where they have a present or contemplated interest unless such interest is specifically disclosed to all affected parties.
Article 6 : REALTORS® shall not accept any commission, rebate, or profit on expenditures made for their client, without the client’s knowledge and consent.
When recommending real estate products or services (e.g., homeowner’s insurance, warranty programs, mortgage financing, title insurance, etc.), REALTORS® shall disclose to the client or customer to whom the recommendation is made any financial benefits or fees, other than real estate referral fees, the REALTOR® or REALTOR®’s firm may receive as a direct result of such recommendation. (Amended 1/99)
Standard of Practice 6-1 : REALTORS® shall not recommend or suggest to a client or a customer the use of services of another organization or business entity in which they have a direct interest without disclosing such interest at the time of the recommendation or suggestion. (Amended 5/88)
When a Realtor, agent or broker receives compensation, a bribe, fake desk rental fee, bogus marketing agreement, or cash in a paper bag, in return for referring clients to these companies WITHOUT full disclosure you have violated your ethics as a Realtor and RESPA. Hell even with full disclosure this is wrong. It's actually wrong even if it's disclosed and the money came in a paper bag. But you get the point.
When a Realtor, agent or broker unjustly disparages a mortgage company or a professionally licensed originator, knowingly, to the detriment of your client, you've violated your ethical code and violated RESPA.
When a Realtor, agent or broker takes a short sale listing and misrepresents the parties of the transaction to a state or federal bank, they've committed bank fraud and wire fraud. When a Realtor, agent or broker misleads a buyer into taking a more expensive loan from a related company or connected third party to line his/her own pockets, they've committed a federal crime, Truth In Lending, RESPA, Business and Professions Laws, California Real Estate Law....and probably a whole host of other crap an prosecutor can lay on you.
And so I say to the, Future Defendent #1, be prepared to be prosecuted and go to jail.
And when that day comes, please know I will NOT be able to put money on your books. But please say hello to Mr. Madoff. He's kind of butch and maybe you can be his next back door deal. I know you won't like it, because I didn't enjoy it today.
Say hello to Bubba for me.
********************************************************************************
Learn it, Live it, Love it!
ethics — n
1. ( functioning as singular ) See also meta-ethics the philosophical study of the moral value of human conduct and of the rules and principles that ought to govern it; moral philosophy
2. ( functioning as plural ) a social, religious, or civil code of behaviour considered correct, esp that of a particular group, profession, or individual
3. ( functioning as plural ) the moral fitness of a decision, course of action, etc: he doubted the ethics of their verdict
moral –adjective
1. of, pertaining to, or concerned with the principles or rules of right conduct or the distinction between right and wrong; ethical: moral attitudes.
2. expressing or conveying truths or counsel as to right conduct, as a speaker or a literary work; moralizing: a moral novel.
3. founded on the fundamental principles of right conduct rather than on legalities, enactment, or custom: moral obligations. capable of conforming to the rules of right conduct: a moral being. 5. conforming to the rules of right conduct ( opposed to immoral): a moral man. 6. virtuous in sexual matters; chaste. 7. of, pertaining to, or acting on the mind, feelings, will, or character: moral support. 8. resting upon convincing grounds of probability; virtual: a moral certainty. COLLAPSE
–noun
9. the moral teaching or practical lesson contained in a fable, tale, experience, etc.
10. the embodiment or type of something.
11. morals, principles or habits with respect to right or wrong conduct.
Wednesday, May 11, 2011
How long do you have to wait to buy a home after short sale, foreclosure, or BK?
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