As housing improves, mortgage companies move in

  • Article by: Jennifer Bjorhus , Star Tribune
  • Updated: September 20, 2013 - 10:39 PM

Midwest Mortgage Capital is seeing opportunity to grow as megabanks cut back.

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jim2011beamSep. 20, 13 9:55 PM

Here we go again! Mortgage brokers/bankers moving in to make low doc, no doc, liar loans to anyone who can fog a mirror. The loans will be sold upriver several times until owned by Freddie and Fannie. Then they'll go bad in three years and the taxpayer will be on the hook. The only ones who'll make money are the new broker/banker guys (who disappear before the **** hits the fan) and the lawyers who sue everybody after the fact. The taxpayer loses.

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bblheadSep. 20, 1310:20 PM

Selling your mortgage is one of the biggest issues I have with the system. If I sign a contract with a company, I expect to continue working with that company. So far, my mortgage has been sold about four times and is actually back with my original lender. At no point did I have a say in the change. Add to that many bad loans were sold multiple times and by the time the market fell, the people who initiated those bad loans were out of the picture. So much for ethics in business.

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svttomSep. 20, 1311:43 PM

Minnesota law no longer allows for so-called "liar loans" so that theory is out of the question. The problem lies with loan officers at both big box banks and local mortgage broker shops. Many of these new companies moving in are trying to entice many of these loan officers with the highest compensation allowed under the Dodd-Frank act, many of which solely care about what's in their pocket book at the end of the end of the day instead of truly benefiting their customer by providing the best rate. I'm talking about the loan officers who only close a few loans a month and charge an arm and a leg in order to fund their golf trips, vacations and whatnot. I'm glad many of these fly-by-night companies are coming in because they'll be knee deep in mud when all is said and done in the Minneapolis mortgage market. Let's just hope they have solid QC and fraud prevention tools put in place because even though the so-called "liar loans" are no longer available here, fraud and misrepresentation is still chugging along.

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theagonybhoSep. 21, 13 7:26 AM

FYI nothing is improving, the only reason the housing market is anywhere is because of the feds pumping 85 billion a month into the markets. Once the interest rates go back to 8% where they should be prepare for bubble number 2, the new mortgage companies life span will be short lived.

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stingballSep. 21, 13 2:09 PM

I have been following local mortgage rates for the past 7 years, and US Bank's rates are always the lowest, by far. Make sure you are doing an apples to apples comparison when comparing mortgage rates. Look for the no discount point, no origination fee rate and compare that from lender to lender. Some lenders will not provide a 0-0 rate in an attempt to confuse unsophisticated borrowers into thinking they are getting a better rate than they really are. But there is no good reason to buy a mortgage from a company like Midwest Mortgage Capital. They will charge you a higher rate than US Bank and you will also have to worry about whether they can close the loan on time, or even have the money to consumate the deal at closing time. I have no special allegiance to US Bank, but they are the best bank to go to for a mortgage. Don't mess with the Mickey Mouse, fly by night operations.

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foneboothSep. 21, 13 5:02 PM

The modern of carpet baggers...and bblhead is exactly correct on selling off these loans...

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dcvikingsfanSep. 21, 13 5:29 PM

jim201beam, I work at Feddie Mac, these loans are no longer allowed to be part of ours or Fannies porfolio..so dont't worry

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mtgxptSep. 21, 13 6:23 PM

wow, these comments are puzzling! I'm guessing that most posters are not real Minnesotans, and based on the lack of intelligence expressed have probably most recently relocated from Iowa. Jim Beam, have another drink. Those loans have been extinct for 5+ years. Stingball, a quick check of mortgage rates show that USB is .125% to .25% in RATE higher than most. bblhead, have you somehow been "harmed" by a new company purchasing your loan? Are you that afraid of change? I expected better, Minnesota.....

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Test IciclesSep. 21, 13 6:37 PM

A one man show,,,trying to hire some LO's who failed at other mortgage companys....moving in to work in Osseo,,,,good luck....your best bet is to work with a seasoned company with a seasoned LO who has been here for a while....go back to where you came from Mr midwest

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stingballSep. 21, 13 7:00 PM

mtgxpt, I think you need to re-check the mortgages rates you supposedly checked. I really hope that I don't have to explain to you that you can't compare the rate offered at 2 discount points with a 1 percent origination fee against a true no-cost mortgage with 0 points and no origination fee. Obviously, you can buy down your rate by paying points up front. I'm guessing that your rate comparison didn't take this obvious fact into account, and if so you need to surrender your name (mtgxpt) if this stands for "mortgage expert". If you work for Midwest Mortgage Capital, I guess you didn't like my comment, even though I was just speaking the truth.

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