Angry at the Media

This is a recent letter I sent off to as many people as I could in a fit of rage of how the media is not helping the banking/mortgage world.


Dear Channel WCVB TV Channel 5 Boston MA,


Let me start off by saying I have been in banking and mortgage lending for over 15 years and pride myself and my staff for offering traditional Fannie Mae mortgage programs to homeowners. I own Emerson Lending Company in Acton MA and we consult with our clients and assist them in making the right choices for home ownership. We do not charge points, we keep our closing costs lower than the neighborhood savings bank and we do not charge broker fees. We continue to provide services and consult with homeowners of what they can actually afford. I currently own my own mortgage company in Massachusetts. My company was incorporated by the Commonwealth in 2003 and I am reviewed and audited by The Massachusetts Division of Banks.

Today, Saturday August 11, 2007, I tuned into your station at 12:30pm looking for news, when I noticed a “paid programming” event. After viewing the paid programming for only a few moments, I was outraged and absolutely disgusted at what I was watching. I was especially outraged after this past week and what the economy has gone through in the banking world.

WCVB TV was allowing a “paid advertiser”, a mortgage lender to promote various types of mortgage programs that brought the housing market to where it is today. I am absolutely disgusted with who ever is in charge of your programming, ethics and morals. Such programs as a 50 Year note, 40 Year note and even the Negative Amortization mortgages were being pushed along with a host of other mortgages that continue to get consumers in trouble. The paid advertiser was promoting taking cash out of your home and then moving to a video showing a couple in their overpriced speed boat. Your home is not a casino!

You have certainly witnessed as well as reported the news over the last few months of how foreclosures, bankruptcies and homeowners have lost their homes. Of course, you have seen the political race in the nation and how each candidate would like to go after fraudulent mortgage companies. Some of the main targets have been mortgages with pre-payment penalties, adjustable rate mortgages and of course loans with high costs to the borrower. This company was touting these products like George Foreman and his grill!

Do you actually care about the content of what you are airing or do you fall into the category of this type of Mortgage Company? By that I mean, “Let’s just take the money from them and who cares what happens after” mentality. I know your channel and newspaper both receive advertising dollars from many of the Alt A Lenders who put us in this mess, but yet your writers have the nerve to slam the big honest lenders?!?!?

I am not a writer or a political activist of any kind, but when something like this is so blatantly obvious of how it can affect the consumer, I must speak out. I have sent this to my local and statewide elected officials as well as many real estate professionals.


Sincerely,


William Nickerson
President
Emerson Lending Company
Acton MA 01720

Mortgage Rates Drop

This week in the mortgage market was another interesting one! Mortgage rates continue to improve and home prices are at a 2 to 3 year low. We saw the 30 year fixed rate drop to 6.25% today with 0 points. You do the math, this is the perfect time time to buy a home, and I mean any home! A new home, a vacation home, an investment property or even the condo for your kids while they are in school for a few years. More good news, no big banks went out of business today! Although, the day is not over yet.

The media loves to promote fear and we as consumers buy into every time. I have read more articles about how the sky is falling and the banking world is crumbling as we speak. Don't get me wrong, there is some unsettling news out there, but if we stick to basics as we once did, the mortgage world will be okay. If a rate sounds to good to be true, it is! Pre-payment penalties, Negative amortization, adjustable rate mortgages... these are all gimmicks to stretch your dollar. What happens when you stretch a dollar too much? It rips! I see too many buyers come in with the idea that they can grow into the payment after a few years?!?! Never thinking of the what ifs? Banks and Lenders have trimmed their product line, there is no more of the No document loans to 100%, jeez, I wonder why.... It will be harder for you to take cash out of your home up to 100% as well. And get this, we want to see that you have good credit. Remember, home ownership actually is a privilege and not a right. It is something we must all earn.

Here is the classic story you will see in the paper: A couple rents a house for $800 per month, all there bills are behind and they have no savings. They a buy a house and the mortgage payment is $2400 with taxes and insurance. I want you to think this through, if they can not afford there rent, how are they going to be able to afford this new mortgage payment? Not only do I blame the idiot loan officer for putting them in this position, but I have to blame the buyers as well. Imagine that dinner conversation: Honey, I know we can make it now, so why don't we just go for broke and really screw ourselves! Whatta Think?

We are always looking to point the fingers, it is never my fault! Stick to the basics! If you can not afford it, you can not afford it!

It is now more important than ever to have that proper pre-approval in hand. This is to be done before you look at homes! The last thing you need to do is to show up to the mortgage company with a signed offer in hand and you never checked your credit. Talk about stress! Now you are scrambling to find a mortgage product to fit your credit. Sometimes this can be a challenge.

If you have any questions about the mortgages or just the plain truth about what is going on in the market, give me a call any time or send me an email at bill@emersonlending.net

Check out our website at http://www.emersonlending.net/

As always, thank you for reading!

Bill Nickerson, President

Emerson Lending Company

179 Great Road

Acton MA 01720

978-264-4803