PERSONAL VIEWS by MAHER SOLIMAN
for Immediate Released April 15th 2008// Los Anglels, CA
NLS & BORROWERHOTLINE.COM

THE SECTOR AND BEARISH VIEWS

I take great pride in knonwing I sat out the 36 month leading to the end of th e sub prime madness. My views are offered as an inustry analyst for NLS Advisors and 20 year secondary underwriter who sat out the last 5 years. Then , i was candid about the enevitable as I am now in hindsight. My view was explained over again to earnngs driven fund managers and the capital markets derivatives traders, who also were growing in skeptimism. Sub prime securities and orginations volume, perfroamnce and ample liquidity - - -cannot last.

No chance this deal would sustain itself beyond Q3 06. You see, there was so much capital committed to the “beast” called ABS, MBA when the market commenced to flatten out by 4th quarter 06. The market sector breadth and depth measured by originations (receivables) offset by asset impairment were unacceptable. But it was somewhat manageable and within the algorithmic tolerances for a worst case scenario pursuant to over collateralization and defaults.
Therein, you had a run in home sales activitiy and artifically stimulated refiances over the next 18 months consisting of this pain staking and exhausting attempt to resurrect a dead market.

Again, the push for stimulating originations was pursuant to commitments totaling billions of dollars for delivery of future mortgage pools needed to fulfill demand for asset back‘s (securities) Home sales were flat and rates unable to generate any interest. You have a dead market.
According to web site www. bororwerhotline.com, a consumer advocacy for Predatory lending, Wall Street is the culprit or mastermind. It was mortgage banking and commercial banks who carried out their orders. Wall Street securities and investment houses were releasing bulletin after bulletin and credit program matrix advisements as to new “LOWER” credit standards to qualify high risk borrowers and that lead to a sudden downward ratcheting for layered risk.

The phenomena were derelict in accordance with ensuring minimum thresholds for integrity and establishing any level of quality earnings from future securities income streams. In translation, what that all means is you now could grant credit acceptance to a immigrant part time maid, a 21 year old Gardner, a shoe salesman and other county employees who fit the $20,000 a month profile using no verification “Stated Income Stated Assets” borrower profiles. Each of the professions I just mentioned play a necessary role in our economy but these wage earners are easy to scale along a profession and education earnings spectrum. And now the dream offered to them is no longer there as they cannot afford these $600 to $850K homes they acquired at 100% financing using shadow income.

They are not the blame but the victims. But the ability of the street to use the bottom scale of labor and blue collar sector of the economy is insane but did in fact support resurgence in housing activity 18 months longer than expected. These comments are made in reference to home sales activity and maintaining volume originations. But, somehow I just don’t get why the likes of Countrywide’s, Wells and WaMu’s went along with it. By Soliman M. // Mortgage Securities Analyst www.borrowerhotline.com

POLITICS AND MORTGAGE CRISIS

The mortgage discussion by McCain loses much credibility for the man. No way can FHA, HUD The Fed or even a reunion of MASH figure out a way to bail this mess out? Housing will not come into line with a stable market until every American can own the home they currently are in. therefore prices will continue to plummet and mortgagors will lose out as foreclosures skyrocket. It’s called a flush out or carving up of the piece of the market that lacked integrity and never could be sustained under any type of rational modeling.

Thank Wall Street for your No Income No Asset Just Make something Up No verification 100% the loan that tacks on the added interest and principal to the balance of the loan….the program that made no sense…remember? According to Maher Soliman, an analyst with www.borrowerhotline.com unfortunately, the horizon is not bright with so many American homeowner casualties from delinquency and foreclosures, lender REO’s and plummeting banks earnings and dropping share prices. Great for election year politicking however. Well, McCain, the Street did give American’s a shot at the dream … owning a $ million dollar first home. Even if it was only for a short brief glimpse …that is before facing these homeowners’ face foreclosure, and lender harassment, the burden of threats of deficiency losses taxed as ordinary income and other forms of humiliation.

So, outside of private sector incentives for getting involved, McCain should really let this deal sort itself out.

Lender's Beware of Typed Final (1003) Applications

Lenders Beware of Typed Final (1003) Applications is correct and not intended as a cute into to another boring secondary mortgage loan article. This in my opinion is the one thing Lender's often will do, but legally cannot, when making a loan.

It's true that over 80% of all loans fall into the category of typed, well, computer generated loan applications.Problem: And half of the 80% (homeowners’) could get out of their loan, receive back a refund of points and fees or even have their loan in cut in half as a settlement.

Here’s why -

Because anything that is misstated on the borrower application is unlawful. Really, and subject to criminal punishment. But the lender is at an advantage and has a fiduciary responsibility to the borrower. This is given when considering the expertise and sophistication need for making a loan.At borrowerhotline.com, we see countless complaints by borrowers who cannot afford their loans.

And this argument about handwritten versus an inintial and final computer genreated application is so true, especially when the borrowers are not in budget. You see cops and school teachers making $10,000 to $25,000 month. (not to say they don't deserve it....but come on).

Now, without a handwritten application, how can you hold the borrower to the argument that it’s they who lied and the lenders was just doing their job? Borrower is not telling the truth, huh!
Then show me the handwritten application monsieur lender.

By the way, does and underwriter or quality control person ever check salary web sites for average earnings for professions?

If you have a grievance with a lender, and did not complete a handwritten 1003 application - - - then call us for more information. We are http://www.borrowerhotline.com/ 925-550-1826