A Judge threw out the Quicken Loans lawsuit against the DOJ and HUD. He did it for venue purposes, so it’s not like the battle is over. We will be very interested in seeing how this all shakes out, not just for Quicken Loans, but for the industry at large.
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Mixed bag of feelings. I think it is a witch hunt, for sure. The DOJ is off their rocker again. This is no surprise. Sad, but a true environment that is supported by the current administration. If you are a big boy that makes phenomenal amounts of profit, you better just accept the fact you are in the cross hairs. Don’t like it? Start spending your money on the correct campaigns. If we are honest with each other, true professional MLO’s, look at this in a different light. Not part time MLO’s who have no clue how their industry works or bottom feeding refi teams. So, professional MLO’s look at this with a smile or a smirk. Why? Because Quicken Loans is one of those machines that have watered down our industry. They are what is referred to in our Industry as a “sweat shop”. They are not really a Mortgage Lender…….not in the true professional sense. They are a Marketing Company that sells. LO’s are not LO’s, they are Salesmen. True MLO’s understand their craft and know guidelines, can put a file together, and can guide a file from point A to point Z. Quicken Loans has a high turnover ratio and the so called LO’s will make handful of basis point per transaction, and get spoon fed leads from their mass marketing engine. When customers go through a Quicken Loan process, and talk to 8-12 different people through the transaction, customers see no value in what we do. It’s like buying a pair of shoes on line. I personally had Quicken Loans do one of my own HARP refi’s when the programs first came out, as they were of the only ones that stretched LTV’s at the very beginning. I can definitely tell you that the process you go through, compared to a Professional Lending unit, is a train wreck. When I had legitimate questions, no one could answer them. I had to be passed on to a Manager, who would take 1-2 days to email or call me back with answers. Every time someone passed me down this manufacturing plant assembly line, it was evident that the left hand didn’t speak to the right hand. I also remember having to get a Manager involved regarding my assets. I have a PMA through Wells Fargo. They would not accept the PMA. They made me bust it up and provide them with just the Savings Account portion of the PMA Account. And they couldn’t give me a definitive reason why. At this point I was so frustrated, I simply supplied them with that they asked for, of which they then lost twice, and had to get yet another Manager involved…….. all different names for Managers which is hysterical. So finally we are done with the loan and they strong arm me into using a Detroit based Title Company. They wouldn’t budge on this either. I did not want to use a Title Company out of State and I am an MLO and I have my own Title Company with about ½ the costs. I fought this for a while, and got nowhere. I did get a whole $500 discount, but I was pretty pissed off at this point. And keep in mind they send a mobile notary to your home to sign you. While some people know this can be a great service, when in need, but we all know a mobile notary can’t answer “jack” about issues that may arise with the loan DOCS. So yet again, their system is set up to water down the industry. I want an educated Escrow Officer or Settlement Officer, not a mobile notary.
So in my opinion, if you support the big boys, aka sweat shops, you support the watering down of our industry and support the mentality of a salesman, and not the craftsmanship of what an MLO should be required to have. Not to mention, Realtors have figured this out and when an LA sees a Pre Approval Letter from a place like Quicken, they are less than thrilled, and if there are other offers that are from a Legitimate Lending Company, we all know which one is preferred.
You are SO right. Every point.
This is SO not surprising! Aren't these the same people that in the 90's went after the banks because they WEREN'T making enough low income loans?? The lenders have all continued to be punished for years, the first being unnecessary updates to RESPA and the latest being implementation of Dodd-Frank. I guess they never figured out that the REAL culprits, ABC mortgage Company that popped up on every street corner and the like, were long gone before the crap hit the fan in 2007-08. The current administration has fixed NOTHING…
How about this pathetic article pushed to our local ‘rag’ in South Florida the Sun-Sentinel from Marcie Geffner at Bankrate.com. http://www.pressreader.com/usa/sun-sentinel-broward-edition/20160102/textview It could not be further from the truth. Get your facts straight first Marcie, an FHA appraisal is good for 120 days. Furthermore, did any sellers bark at an FHA offer on their sale after August 8th, 2007 the day the water supply ran dry? FHA pretty much bailed out our markets down here and now it remains a great alternative to many people who cannot otherwise obtain Conventional financing. And, does Marcie & Bankrate.com think these issues regarding appraisals are immune to Conventional Appraisals? Wow, let’s chase away the 1st time homebuyer from buying a home and otherwise keeping the market fluid. What’s next, don’t accept a VA loan offer? Hateful idiots writing propaganda…
Great breakdown. The DOJ is always trying to justify their existence.
I Love listening to you guys! How many homeowners have defaulted because of the economy? Job loss? Natural disasters? Why did we bail out the banks again? My point…When Mr Big or Mr Small don’t play by the political rules of this current leadership they WILL Pay, one way or another. Based on your presentation, this is exactly what is happening….Best wishes to the ‘private’ entrepreneur….(This is in no way an endorsement of Quicken Loans, by the way)
"A broken city by the way, that's being almost single handedly being restored and rejuvinated by Quicken owner Dan Gilbert". Ha-ha. That's the script guys.
When Clinton and Barney Frank go to prison for destroying the world’s economy LOL then this will all stop. they are the ones who started all this insanity and once justice is served and the pound of flesh has been given BY THOSE WHO ARE TRULY RESPONSIBLE FOR THIS WHOLE MESS. Then life can move on. The banks could not have done what they did if they were not given the green light by Barney Frank and Bill Clinton when Clinton was President. I refer you to the NY Times article in 1998 regarding this matter and SNOPES.COM has validated the responsible parties.
Agreed. Barney Frank set up the destruction of the RE industry to begin with then added insult to injury by drawing up Dood/Frank as his CYA.
Thank you Quicken for taking on the DOJ!
its not broken any more
Re: New Construction “Preferred Lender” Incentives
Hi All,
Don’t know where to post this but I would love to hear about the following:
I have done a number of new construction transactions representing the Buyer. I have just put one of my Buyers under contract, and as usual, DR Horton will not allow a $4000 Closing Cost credit to be given to my Buyer unless they use DR Horton’s “preferred lender.”
Does the CFPB or anyone else even care about this? Please share your thoughts Frank & Gary.
Thank you!
-JR
Realtor & RE Agent in Utah