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Interesting Article in INSIDE MORTGAGE FINANCE To my Loan Officer friends and colleagues at smaller lenders... We are hiring. Call me for a confidential conversation. ******* Some Uncertainty on Warehouse Financing for Nonbanks pmuolo@imfpubs.com Flagstar Bank was the second-largest provider of warehouse financing to nonbanks prior to the sale of its outstanding warehouse loans to JPMorgan Chase about a month ago.  Chase was already the largest warehouse provider prior to the acquisition, with an estimated $20.00 billion in warehouse commitments outstanding as of the end of March. Flagstar, meanwhile, had $10.91 billion of outstanding warehouse commitments at the end of March.  The big question, according to some of JPM’s warehouse competitors, is how many of Flagstar’s customers will stay with the megabank. Although JPM never discusses its mortgage banker finance unit, it’s common knowledge in the industry that the bank deals with only the cream of the nonbank crop and has a minimum capital requirement of $10 million.  Flagstar was a bit more liberal in the collateral that it would tolerate, allowing for sub-limits for non-qualified mortgages and seconds. Will JPM do the same?  For more details, see the latest issue of Inside Mortgage Finance. https://lnkd.in/e4QzUMW5

▶️ Loan Fraud in Real Estate ➡️ ❇️ Getting a real estate property is an expensive affair that might require your client to obtain a loan. However, loan frauds are common with banks just as they are with private lending agencies. ✳️ Shady loan officers and managers can falsify your application information to get additional money from the bank. It's essential to detect potential loan scams by looking at each step of the process individually. Loan fraud can happen in several ways — from misleading you about the kind of mortgage that suits your needs to taking advantage of you by not providing the service that they promised. To prevent your client from falling into loan fraud, you should have a network of professional lenders that you trust and are reliable. ▶️ How to spot a potential loan scam: 1. The lender offers you a discount on loans if you pay them upfront (usually through wire transfers or checks). 2. The bank officer or loan manager insists that you give the money to them in any way possible, even if they're not authorized to do so. 3. The lender gives you misleading information about your financial standing or credit score (for example, by inflating it). Lenders promise quick and easy approvals for loans but later ask you to send your documents over again after asking for additional fees. 4. The offer seems too good to be true. The best way to go about this is by comparing all terms and rates with other lenders before signing anything with anyone. 5. Look out for "gimmicks" such as free money offers, no closing costs, or no tax at closing options since these are often scams designed by sleazy agents looking to take advantage of buyers. Lat contact us to fair deals in real estate on +91 9871026130

It is imperative for all mortgage companies and banks to thoroughly assess both new and experienced loan originators whose compensation is rapidly increasing, particularly within a short period of time. If a Loan Officer departs from a reputable company and claims during their interview that they previously earned an annual income of one million dollars as an example, this should raise suspicions of potential fraud. Prior to making any hiring decisions, it is crucial to conduct thorough research and background checks. Loan Officers who are earning unrealistically high amounts, especially in a declining market, may be doing so because the lender is not scrutinizing their loans. When something appears too good to be true, it is wise to exercise caution.

I started my career at M&T Bank as a loan officer in 2002. 🏦 I worked at a building named M&T Center which is located at One Fountain Plaza. A few blocks away, there was another large building called M&T Plaza which is located at One M&T Plaza. It can be pretty confusing if you don’t know the setup. 🤯 These were the days when customers needed to come in and exchange docs because eSignature wasn’t a thing yet, and scanners weren’t something most people had access to. There was a customer parking lot across the street from our building which had plenty of customer parking and there was a larger parking lot next to that for employees that had no customer parking. Upon entering the building, customers needed to stop at security to get a pass, then were directed to the elevators to get up to the 5th floor where we were located. I learned pretty early on that I needed to do the following to have a successful borrower meeting: 1️⃣ Call my borrowers and explain to them that there were two M&T buildings, and be sure they we’re heading to the correct one. 2️⃣ Give them direction on which parking lot to park in. 3️⃣ Walk down to security and hand them my business card with the name of the individuals visiting so I could be called to escort them up when they arrived. If the borrowers went to the wrong building, they wouldn’t have been able to find the right parking lot, would go into the wrong building and get lost.  When they were directed to the right building, they would walk, because they didn’t want to deal with re-parking. 🤷🏻♂️ If the borrowers went to the wrong parking lot, they couldn’t get parking and would anxiously try to figure out an alternative. 🅿 If they showed up at the security desk unannounced, they would have a frustrating interaction as the security guard tried to figure out if they should be let in and where they needed to go. 👮♀ None of these things had anything to do with mortgage banking, but they were critical to the borrower’s experience. Today we don’t have as many borrower meetings in person, instead, our borrowers are on a technical “journey”, strolling into our mortgage world, armed with an iPhone.  Understanding and empathizing with this journey is just as important as understanding credit scores and LLPAs.  Thank you for coming to my TED Talk.

The Securitisation Scam BELOW IS THE ENTIRE PROCESS STEP BY STEP: 1. Borrower signs the bank’s Purported Loan Contract and Mortgage. 2. Borrower’s signature transforms the purported Loan Contract into a Financial Instrument worth the value of the agreed Loan amount. 3. Bank Fails to disclose to borrower that the borrower created an asset. 4. Loan Contract (Financial Instrument) asset deposited with the bank by borrower. 5. Financial Instrument remains property of borrower since the borrower created it. 6. Bank Fails to disclose the bank’s liability to the borrower for the value of the asset. 7. Bank fails to give borrower a receipt for deposit of the borrower’s asset. 8. New money credit is created on the bank books, credited against the borrower’s financial instrument. 9. Bank fails to disclose to the borrower that the borrower’s signature created new money that is claimed by the bank as a Loan to the borrower. 10. Loan amount credited to an account for borrower’s use. 11. Bank deceives borrower by calling credit a “Loan” when it is an exchange for the deposited asset. 12. Bank deceives public at large by calling this process Mortgage Lending, Loan and similar. 13. Bank deceives borrower by charging Interest and fees when there is no value provided to the borrower by the bank. 14. Bank provides none of its own money so the bank has no consideration in the transaction and so no true contract exists. 15. Bank deceives borrower that the borrower’s self-created credit is a “Loan” from the bank, thus there is no full disclosure so no true contract exists. Borrower is the true creditor in the transaction. Borrower created the money. Bank provided no value. 16. Bank deceives borrower that borrower is Debtor not Creditor 17. Bank Hides its Liability by off balance-sheet accounting and only shows its Debtor ledger in order to deceive the borrower and the Court. 18. Bank demands borrower’s payments without just cause. Deception-theft- fraud. 19. Bank sells borrower’s Financial Instrument to a third party for profit. 20. Sale of the Financial Instrument confirms it has intrinsic value as an asset, yet that value is not credited to the borrower as creator and depositor of the Instrument. 21. Bank hides truth from the borrower, not admitting theft, nor sharing proceeds of the sale of the borrower’s Financial Instrument with the borrower. 22. The borrower’s Financial Instrument is converted into a security through a trust or similar arrangement in order to defeat restrictions on transactions of Loan Contracts. 23. The Security including the Loan Contract is sold to investors, despite the fact that such Securitization is Illegal. 24. Bank is not the Holder in Due Course of the Loan Contract .Only the Holder in Due Course can claim on the Loan Contract. 25. Bank deceives the borrower that the bank is Holder in Due Course of the Loan. But do not despair, we are about to turn the tables on these crooks.

Mindful Moments Takeaways☘️ Secured Loan Fraud: Understanding the Risks and Vulnerabilities Secured loans, such as mortgages, auto loans, and home equity loans, are typically considered lower-risk because they're backed by collateral. However, fraudsters can still exploit vulnerabilities in the lending process to commit fraud. In this article, we'll delve into the world of secured loan fraud, exploring the common tactics used by fraudsters, the risks and vulnerabilities associated with secured loans, and the best practices for preventing and detecting fraud. Types of Secured Loan Fraud Secured loan fraud can take many forms, including: 1. Identity Theft and Impersonation: Fraudsters obtain personal information, such as social security numbers, addresses, and employment details, to impersonate legitimate borrowers. 2. Collateral Manipulation: Fraudsters inflate or deflate the value of the collateral to obtain a larger or smaller loan. 3. Loan Application Fraud: Fraudsters provide false income documentation, misrepresent credit history, or conceal debt obligations to qualify for a loan. 4. Insider Collusion: Fraudsters collude with loan officers, appraisers, or other insiders to approve fraudulent loans or overlook red flags. 5. Title Fraud: Fraudsters forge or alter property titles to obtain loans or sell properties without the owner's knowledge. 6. Equity Stripping: Fraudsters convince homeowners to transfer their property deeds to a third party, who then takes out loans against the property. Risks and Vulnerabilities Secured loan fraud can occur due to various risks and vulnerabilities, including: 1. Weak Verification Processes: Inadequate verification of borrower information, income, and employment can enable fraudsters to provide false documentation. 2. Lack of Appraiser Independence: Appraisers who are not independent or are influenced by lenders or borrowers can provide inflated or inaccurate property valuations. 3. Insufficient Credit Checks: Failure to conduct thorough credit checks can allow fraudsters to conceal debt obligations or misrepresent credit history. 4. Inadequate Loan Officer Training: Loan officers who are not adequately trained to recognize red flags or suspicious activity can inadvertently facilitate fraud. 5. Lack of Transparency and Communication: Poor communication and lack of transparency between lenders, borrowers, and other stakeholders can create opportunities for fraudsters to exploit. Best Practices for Preventing and Detecting Secured Loan Fraud To prevent and detect secured loan fraud, lenders and financial institutions should implement the following best practices: To be continued........

Falling property values are exposing mortgage fraud schemes from the days of cheap debt — and regulators are taking notice. Federal prosecutors and regulators are tracking a noticeable uptick in falsified financial reporting on loan documents from the mid-2010s through 2021. Rising interest rates have left many of the landlords at those properties struggling to stay afloat, exposing their schemes and leaving them open to prosecution.It’s a general trend throughout history that fraud occurs during boom times and is revealed during bust times.The role of property appraisals is at the core of the financial malfeasance. Lenders typically accept valuations presented by reputable developers and landlords, trusting the numbers to be accurate.Reporting deflated costs and inflated revenue through rents, for example, can secure better loan terms or higher dollar values. When rates are low, those loans can perform, but as rates rise, actual rents don't go as far to cover interest expenses. Federal prosecutors are boosting their efforts to expose this fraud. #cre #commercialrealestate #Commercialrealestateadviser #commercialproperty #creinvesting

IF YOU ARE AN ACTIVE LOAN OFFICER... MOST LIKELY YOU ARE SPECIAL!!! As of January 2024, there were 93,938 active mortgage loan officers (MLOs) in the United States, which is almost half of the number of producing loan officers in the country. This number is a significant drop from 2021, when the Conference of State Bank Supervisors (CSBS) reported that the number of MLOs increased from 165,116 to 183,618.  Now 8 months into 2024, my guess we are 10% less than where the numbers were in January. Barry Habib posted this slide on the MBS Highway below. After digesting this, and comparing to my team's funded reports over this time frame, I couldn't be more proud! Below is where my Armed Forces Bank LOs rank compared to their fellow LOs in the United States over the last 12 months. % of AFB LOs in the top 25% or greater --> 95% % of AFB LOs in the top 10% or greater --> 45% % of AFB LOs in the top 5% of greater --> 33.3% % of AFB LOs in the top 1% of all the US --> 10% If your closed loans over the last 12 months allow you to be on this list, you should be celebrating your victories too. You helped people's dreams come true. You developed relationships with referral partners. All within one of the toughest markets in history. It is hard today, but this is a reminder you are one of the special ones. You are still in the game and you are still winning!

🗞️I recently came across an article from CTV News that exposes a scam hitting people across the country. ⚠️ It’s called an advance-fee loan scam. Here’s how it works. A false company will offer services like student loan consolidation, an emergency loan, home mortgage refinancing, etc. even if you have bad credit. But there’s a catch. They’ll ask for exorbitant processing fees which the applicant will pay in hopes of getting the loan.💵 Sadly, once the fees are paid, the scammers disappear leaving the loan seeker out thousands of dollars. 🔎Here’s my advice. If you’re seeking a mortgage or looking at refinancing, seek out a reputable mortgage broker. You can search the Mortgage Broker directory through FSRA to see if someone is a licensed mortgage broker, but it won't tell you how reputable and responsive they are. ✅ Google Reviews and recommendations from trusted advisors and professionals are good places to start when looking for someone. If you don't have any personal connections, I recommend asking on a Facebook community group for a recommendation. To learn more about this scam and red flags to look out for, visit https://lnkd.in/gVTX2G4a #mortgagebroker #mortgageagent #torontorealestate #realestate #toronto