This industry is so sick. She said most borrowers were going for 100% financing. And most mortgage brokers, Roxie, were pushing subprime loans. Why? You know the an$wer. I like how the CAMB newsletter talks about their 'fiduciary responsibility". And they are "guilty of making phenomenal profits at reasonable risks." Maybe it's time for some mortgage broker lawsuits.
2002-Dec: The Hunt for Bucks
“You name it, we’ve got it,” says Roxie Chilcott, president of the San Diego chapter of the California Association of Mortgage Brokers. “If the borrower has got a credible track record in their credit history or employment history; where there’s a will, there’s a way.”
Most borrowers, Chilcott says, are going for the 100 percent financing programs. Even here, several options and a multitude of ways to qualify are available. “The loan broker is there to hold your hand,” Chilcott says. “They don’t get paid until the job closes.” (Really? They hold your hand and HELP people?)
2003-05-12: Home buying is in the air
Chilcott brokers mostly sub-prime loans, money lent to individuals with less-than-shining credit reports. "It doesn't' matter who you are. Even the sub-prime loans are in the (6 percent range)," she said. Investors who buy portfolios of mortgage loans are getting better returns due to increased volume so they'll allow lower interest rates, Chilcott said. Also, many sub-prime borrowers are just barely classified that way, she noted.
2007-April: San Diego Subprime Fallout
“We were pricing ourselves right out of the ability for even the upper end of incomes to be able to afford a home,” says Chilcott. The market developed with the idea that 20 percent per year appreciation was built in, Chilcott says, which made 100 percent loans possible. “They could make a 100 percent loan today and in six months they were 80 percent loan-to-value,” she says.
“As we move forward, I’m not sure we will ever again have the 100 percent financing,” she explains. “What lenders are doing is getting back to real underwriting and investments that make sense.” (What a novel idea: ensure loans can be payed back.)
2007-09-20: Real estate revival? Not soon
"Roxie Chilcott, a mortgage broker at Acoustic Home Loans in San Diego,..."
Acoustic? Really? Subprime Lender Acoustic Goes Under
2007-12-30: Weighed Down
Roxie Chilcott, former president of the San Diego chapter of the California Mortgage Brokers Association, said the real estate market is beginning to show some signs of life after being moribund for a number of months.
“Phones are beginning to ring again,” said Chilcott, a mortgage loan originator at Bank of America. “People are realizing that if they're going to buy, now is the time, because mortgage rates are only going to go up despite the Federal Reserve's interest rate cuts and home prices are going to start to churn again by late spring.” LOL-LOL-LOL
She believes prices will continue to fall until May or June and then will bounce along the bottom for another three to six months.
Realtors and brokers love to play this card: "mortgage rates are only going to go up". There was a time when mortgage rates were double-digit. If they go up it's just going to drag prices that much further down. Here is a simple way to defeat higher mortgage rates:
- Use a larger down payment
- Pay your home off in 15 years
I hope this turns out to be true: Death of a Salesman 2007: The Mortgage Broker Profession Goes Away