Ask a loan processor.

It's funny how these very same things which caused the financial crisis (high LTV, subprime borrowers, etc) and were evil when private corporations were the ones with the debt are now OK since the government backs it. BOA loves the MHA program because they get to make all these refinances with fees and closing costs, and sell all the risk to other parties, including the government agencies like you mentioned.

I'm sorry, but BOA is trying to produce loans to make money. I find it hard to believe that the corporation really cares about the happiness of the customer long term when they don't hold any of the risk in the loan (as you said, they sell all mortgage loans). How is a 250% LTV a "good" loan??

I'm not coming down on you at all personally. I think it's great that you like your job. It's just as someone who sees things from the other side of the table (bank regulator), it's scary to see the same kinds of deals being made that banks were doing 4 years ago, only this time the government buys them instead of private investors.

You don't see these loans being made in small community banks for a reason - they're too risky. And since I know someone is going to ask, yes, I think that individual borrowers need to shoulder some of the responsibility for the high LTVs they've encountered, etc. That's free markets at work. You want to leverage up and buy too much house? Fine. But you get to enjoy the consequences of a down market.

 

bold^

 

I'm not good at the whole quoting/bold thing, so I'll respond here.

The only risk for BOA is that the loan fall within the guidelines of the purchasers, so it doesn't get turned back to BOA and they're required to hold it. Most mortgage purchase vendor contracts have a 90 day redemption period. If the borrower misses a payment in 90 days, the originator (BOA) must buy it back. Past that, it's the purchaser's problem. Fees don't seem like a lot on a loan by loan basis, but when you add them all up and consider the amount of risk on BOA's balance sheet for that income, it's a pretty good deal.

You're 100% right on the bank needing to maintain a certain amount of liquidity. The scary part is how low that number really is. I would still argue the main reason all the loans are sold is to move risk off the balance sheet while still producing earnings.

Fannie and Freddie are government-sponsored agencies. They were technically public entities that were backed by the federal government. When they tanked with the mortgage crisis, they were put under conservatorship of the Treasury and are essentially government agencies now (government is largest shareholder).

Keep learning as much as you can about the banking/mortgage industry - I know I learn something everyday. Always try to remember there are multiple ways to view everything, and the key is honestly assessing the risks in a transaction. I'm a banker at heart working as a regulator right now, so I don't agree with all of the regulation, but I get nervous seeing such a large movement in high-risk mortgage loan activity so shortly after 2008/2009.

 

I'm not going to argue this point. I agree the government/regulatory agencies are often hard to please and sometimes hypocritical. I feel for bankers in that regard, ESPECIALLY small, community banks. They're the ones that struggle. Personally, I'm a pretty liberal-view regulator, so I'm not going to hammer a bank for making loans outside of Part 365 guidelines (LTV requirements, FDIC regulation), but I want to ensure that you have identified which loans are outside the guidelines and why you feel it was OK to make the loan. You never want your regulator informing you of which higher-risk loans you made.

Again, I was originally a banker, and plan to go back to being a banker, so I understand your frustration. I do know that the knowledge I've gained from looking at things from a different perspective has shown me a lot of scary things in the banking industry.

 

with all the regulations it feels like there isnt enough time in the week to process loans. i go home after a 10 hour day feeling like i barely did anything

 

marketing? lol i dont need to market for bofa. plus i dont even have any contact with the customers in the beginning. if i was a mlo, it would be different.

 

I started my own thread before I was informed this thread existed. So here is my questions:

I am in the process of getting my first and last divorce. Part of the settlement is to get a Re-Fi to get her name off the loan and the deed. I also have to pay her a large sum of money.

I have 90 days in which do this. Anyone have any advice (rates, how to do this, etc.)?

I live in Baldwin County in Alabama. Bank of America has my current mortgage after Compass Bank sold it to Bank of America. The house is not underwater even after paying her off.

 

who do you plan on refinancing through?

 

I am not picky, whoever give me the best deal. I am not wild about paying a bunch of up front fees because I don't know how many more years I will be staying there.

 

well what you should do is get several GFEs. get one from chase and one from b of a, lets say chase has you at 4% with .5pts and b of a has you at 4.25% and .5pts. if you send b of a the GFE from chase they will beat it, and vice versa.

 

and im not sure if the regulations vary through banks

 

my bosses boss just told us something that made me laugh..

"if this job was easy it would be in india"

 

we do out source for some of our shit though..... i hate it

 

yep

 

Lol that sounds like an invitation for a rant. My issues with BoA involve their credit cards. I've got it straightened out now but I'm paying them off and don't have any intention of doing business with them again. Might keep the account open for credit purposes but don't have any intention of using it. Every time they send me a new card I just send it through the shredder.

 

Hahahaha I was having computer trouble and asked a friend, who is from India, for help. He couldn't figure it out so he called tech support and got someone in India. He tried to work it out and he couldn't even understand the guy, so after about 5 minutes of asking the guy to repeat everything he said 2-3 times my friend just started speaking Hindi. Seems logical, right? No dice. The tech support guy replied, "I'm very sorry sir, but I am not allowed to speak Hindi at work!"

 

this job is going to give me gray hair by the time i turn 20. i hate people.

 

I stumbled across this thread and read it all. I'm currently with BoA and am interested in refinancing (with anyone). I last tried with BoA several months back and it stopped before it got started good because I don't live in the property anymore. I've made all of my payments on time and had to move around the country for work to do it. But because I haven't lived in the property for the last 2 years, it seems that BoA won't help me refinance. Any experts on here interested in trying to help? I'd really appreciate it. My rate is double what it should be and I could really use the lower payments from a refi. Thanks!

 

for the MHA/harp program you dont need to be in your property for the alst 2 years.

 

Can you help me get started on another refi then? I'm trying to get my payments lower!