MORTGAGE LOAN CHANGES IN POUNDS AND INCHES
I just closed a mortgage loan for a couple with whom I've worked in the past on financing their home. The last time we did a mortgage loan together was in 2009 before all the new "rules" of the Federal Reserve and Dodd Frank came to be.
The borrower has occupied his home for seven years. He and his wife both have 20 years plus in their careers. The equity in the home is more than 20%. They have plenty of assets. Their debt ratio is about 15%. Credit scores in the 800 range. They were able to refinance to a much shorter term.
As I struggled to get the paperwork in order for this file and tried to figure out how I can prepare it for archiving, I took a moment to measure the current file compared to the one from 2.5 years ago. Here's the results.
The new file is nearly one whole ream of paper (not including the closing side).
The new file weighs in at 3.5 pounds vs 1.5 pounds for the 2009 file.
The new file measures 1.75" deep vs .75" for the 2009 file.
There are many other interesting facts about this file, such as I made half as much in income. I worked twice as long on it. I LOVE working with this couple.
The fact I could not help but blog about today is the weight and size of the file. I intend to send this info on to others, including some people in Washington. Most of the changes brought about with the Federal Reserve, HVCC/AIR, Dodd Frank, L O Compensation, have done nothing to impede fraud. Rather, the biggest change has been in wasted resources and time.
In reality the changes have caused borrowers to obtain multiple appraisals and/or reviews, spend more for appraisals, spend more for credit reports with repulls before closing, spend more for underwriting fees, closings take longer to get to and to sign docs. Now, it is only logical that the mortgage loan changes show up in pounds and inches.
