First Hand
Portland,#2UPDATE EX-employee responds
Sun, January 25, 2004
N- I don't know about "shifting" people into stated income programs but know that Ameriquest offers it. Typically the highest LTV on a loan is 90%. If you didn't have enough income to support your current debt on the standard loan program (W-2 & paystubs) then AE's often tried the other 2 other programs. Fast Trac uses 12 months of bank statements for income, generally for self-employed people that run "legitimate" businesses and do not pay themselves with a paycheck. When this program was used we had to take away 5% of the allowed LTV. Your credit score and mtg history first determines what percentage can be lent and then if an alternate program is used the LTV is lowered. The 3rd method is stated, where you could pull any job title out of your a*s, write it down on a piece of paper and say that you make $5000 a month. Example: Wife, dog breeder, Husband, landscaper. Then Ameriquest would ask for referrals to support your statement and on occasion, a license. Most of the time people gave names of their best friends, who were told to lie, so that they could get their home refinanced. Now, who told them to lie??? HHMMMM, I wonder. If this program was used, 10% of the allowed LTV was deducted, and because it is such a risky loan, the interest rates were and are OUTRAGEOUS!!I wouldn't doubt it if 99% of the people who signed a stated income loan haven't lost their home. As far as floating loans to Long Beach, I have no idea. Once the loans were funded, the problems became that of the servicing department. I do know that when I first started with Ameriquest, which has been approx. 5 years ago, I was told they were formerly Long Beach Mortgage. I also know that at the time I worked for Ameriquest that if you didn't have a FICO score of 650 or better, the lowest interest rate you could get was 9.85% for a 30 year fixed loan and the payout for the AE was literally nothing. All the money Ameriquest makes is from the 2/28 ARM, with the 3 year pre-pay. Prime example: The very first loan I ever signed was for approx. $210,000, charged 3 discount points, no pre-pay penalty, 7.99% on a 2/28 ARM. I saved them $2700 a month because I paid off ALL their credit cards and fortunately for them, they had the equity to do it. The company made approx. $12,000 in revenue and I made $60. Why? Low interest on an adjustable rate loan WITHOUT the prepayment penalty. The couple had the opportunity to refi after 2 years before the rate adjusted and not have to pay. AND they only borrowed 80%. I hope this helped some.
First Hand
Portland,#3UPDATE EX-employee responds
Sun, January 25, 2004
N- I don't know about "shifting" people into stated income programs but know that Ameriquest offers it. Typically the highest LTV on a loan is 90%. If you didn't have enough income to support your current debt on the standard loan program (W-2 & paystubs) then AE's often tried the other 2 other programs. Fast Trac uses 12 months of bank statements for income, generally for self-employed people that run "legitimate" businesses and do not pay themselves with a paycheck. When this program was used we had to take away 5% of the allowed LTV. Your credit score and mtg history first determines what percentage can be lent and then if an alternate program is used the LTV is lowered. The 3rd method is stated, where you could pull any job title out of your a*s, write it down on a piece of paper and say that you make $5000 a month. Example: Wife, dog breeder, Husband, landscaper. Then Ameriquest would ask for referrals to support your statement and on occasion, a license. Most of the time people gave names of their best friends, who were told to lie, so that they could get their home refinanced. Now, who told them to lie??? HHMMMM, I wonder. If this program was used, 10% of the allowed LTV was deducted, and because it is such a risky loan, the interest rates were and are OUTRAGEOUS!!I wouldn't doubt it if 99% of the people who signed a stated income loan haven't lost their home. As far as floating loans to Long Beach, I have no idea. Once the loans were funded, the problems became that of the servicing department. I do know that when I first started with Ameriquest, which has been approx. 5 years ago, I was told they were formerly Long Beach Mortgage. I also know that at the time I worked for Ameriquest that if you didn't have a FICO score of 650 or better, the lowest interest rate you could get was 9.85% for a 30 year fixed loan and the payout for the AE was literally nothing. All the money Ameriquest makes is from the 2/28 ARM, with the 3 year pre-pay. Prime example: The very first loan I ever signed was for approx. $210,000, charged 3 discount points, no pre-pay penalty, 7.99% on a 2/28 ARM. I saved them $2700 a month because I paid off ALL their credit cards and fortunately for them, they had the equity to do it. The company made approx. $12,000 in revenue and I made $60. Why? Low interest on an adjustable rate loan WITHOUT the prepayment penalty. The couple had the opportunity to refi after 2 years before the rate adjusted and not have to pay. AND they only borrowed 80%. I hope this helped some.
First Hand
Portland,#4UPDATE EX-employee responds
Sun, January 25, 2004
N- I don't know about "shifting" people into stated income programs but know that Ameriquest offers it. Typically the highest LTV on a loan is 90%. If you didn't have enough income to support your current debt on the standard loan program (W-2 & paystubs) then AE's often tried the other 2 other programs. Fast Trac uses 12 months of bank statements for income, generally for self-employed people that run "legitimate" businesses and do not pay themselves with a paycheck. When this program was used we had to take away 5% of the allowed LTV. Your credit score and mtg history first determines what percentage can be lent and then if an alternate program is used the LTV is lowered. The 3rd method is stated, where you could pull any job title out of your a*s, write it down on a piece of paper and say that you make $5000 a month. Example: Wife, dog breeder, Husband, landscaper. Then Ameriquest would ask for referrals to support your statement and on occasion, a license. Most of the time people gave names of their best friends, who were told to lie, so that they could get their home refinanced. Now, who told them to lie??? HHMMMM, I wonder. If this program was used, 10% of the allowed LTV was deducted, and because it is such a risky loan, the interest rates were and are OUTRAGEOUS!!I wouldn't doubt it if 99% of the people who signed a stated income loan haven't lost their home. As far as floating loans to Long Beach, I have no idea. Once the loans were funded, the problems became that of the servicing department. I do know that when I first started with Ameriquest, which has been approx. 5 years ago, I was told they were formerly Long Beach Mortgage. I also know that at the time I worked for Ameriquest that if you didn't have a FICO score of 650 or better, the lowest interest rate you could get was 9.85% for a 30 year fixed loan and the payout for the AE was literally nothing. All the money Ameriquest makes is from the 2/28 ARM, with the 3 year pre-pay. Prime example: The very first loan I ever signed was for approx. $210,000, charged 3 discount points, no pre-pay penalty, 7.99% on a 2/28 ARM. I saved them $2700 a month because I paid off ALL their credit cards and fortunately for them, they had the equity to do it. The company made approx. $12,000 in revenue and I made $60. Why? Low interest on an adjustable rate loan WITHOUT the prepayment penalty. The couple had the opportunity to refi after 2 years before the rate adjusted and not have to pay. AND they only borrowed 80%. I hope this helped some.
N
Londonderry,#5Consumer Suggestion
Sat, January 24, 2004
First Hand in Oregon - As an ex-employee do you recall AE's shifting people into stated income programs without the consumer's knowledge (thinking they were doing a lite doc)? Also do they float loans to Long Beach if they don't qualify for Ameriquest? Just curious, the loan program I was told we were put into is not the one I am now in. The program I thought I was in shares the name of a Long Beach program (FastTrac) - Ameriquest does not have a program named this to my knowledge? My advice: Consumers beware - make sure you know each and every detail of your trasaction. Do not trust anyone fully. I wish I had known this earlier.
N
Londonderry,#6Consumer Suggestion
Sat, January 24, 2004
First Hand in Oregon - As an ex-employee do you recall AE's shifting people into stated income programs without the consumer's knowledge (thinking they were doing a lite doc)? Also do they float loans to Long Beach if they don't qualify for Ameriquest? Just curious, the loan program I was told we were put into is not the one I am now in. The program I thought I was in shares the name of a Long Beach program (FastTrac) - Ameriquest does not have a program named this to my knowledge? My advice: Consumers beware - make sure you know each and every detail of your trasaction. Do not trust anyone fully. I wish I had known this earlier.
First Hand Info
Portland,#7UPDATE EX-employee responds
Thu, January 22, 2004
Being an ex employee of Ameriquest, I can say that many loan officers made a significant amount of money under the table from brokers they had established a relationship with. If your loan wasn't acceptable to Ameriquest or the loan officer knew your credit was too good for their standards, your info may have been shuffled off to a broker. In these instances, 9 times out of 10 the broker could offer a way better deal with a conforming lender. If the loan closed, the broker would share half their proceeds. I do not believe these brokers are "employees" of Amerquest if you will, they receive info from dishonest, unethical, loan officers who are just out to make an extra buck. (This was an unacceptable practice to Ameriquest and anyone caught would be fired immediately) This practice was very hush hush but practically everyone I knew was doing it. If for some reason your loan was turned down or you decided that you were not interested, the initial file created on you is kept in a file cabinet in the office for any loan officer to review. When new loan programs are introduced, the loan officers invade the file cabinet to see if any of the turndowns are now possible victims. Many times these entire files never made it to the turndown cabinet because they were in the hands of a broker or other lender. I hope this answers some of your questions.