What does American Home Mortgage melt...

What does American Home Mortgage meltdown mean to you? -

There are 206 comments on the Newsday story from Aug 1, 2007, titled What does American Home Mortgage meltdown mean to you? -. In it, Newsday reports that:

The rapid meltdown of American Home Mortgage has left many people wondering about their mortgages or mortgage approvals with the Melville-based lender.

Join the discussion below, or Read more at Newsday.

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midwestmaven

United States

#216 Sep 8, 2007
ctann wrote:
To RLR
I am making my payments, I just cannot believe that there is no way for me to buy my own loan for 80 cents on the dollar rather than have AHM sell it to someone else for 50 cents on the dollar. Doesn't the court have to approve? Why wouldn't they approve?
If you can afford to "buy" it for 80 cents on the dollar, why don't you just apply it to the MORTGAGE YOU SIGNED FOR??? Trying to get a 20% on your HOUSE from your lender when you can afford to pay??? And you think that's right??? Man you are LOW.
CONCERNED

AOL

#217 Sep 9, 2007
IF BOTH YOUR MORTGAGES WENT BACK TO AMERICAN HOME (WHO ARE THE ORIGINAL MORTGAGE HOLDERS) BEFORE THEIR MELTDOWN IF YOUR HOME WAS ALREADY IN FORECLOSURE WHAT EFFECT DOES THAT HAVE NOW WITH THE MELTDOWN??? IT SEEMS ALL COMMUNICATION HAS STOPPED AND THE HOMEOWNER IN FORECLOSURE HAS NOT HEARD A WORD FROM ANYONE? WHAT SHOULD HE DO NOW MEANING THE HOMEOWNER? HOMEOWNER DESIRES TO HAVE ALL PAST PAYMENTS PUT ON THE BACK END AND A NEW START TO START PAYING AND BE CONSIDERED CURRENT AND OFF THE COURTHOUSE STEPS OF PENDING FORECLOSURE. iS THIS POSSIBLE?? pLEASE ADVISE THANK YOU
Curb the Rage

AOL

#218 Sep 12, 2007
Dude, New York requires an attorney to be present at every closing. The consumer groups cried about that and won so now every borrower MUST pay $1000-$2000 for an attorney to sit thru the closing. So there is absolutely no excuse that the borrower didn't know what they signed. Stop saying the LO screwed them at the closing. Disclosures must be presented prior to closing (mailed to the borrower within 3 days of application) and again at closing. They have weeks to read the disclosures prior to getting to the closing table and for refi's they have an additional 3 days after the closing to read the signed loan docs before accepting the loan's disbursement. Stop saying they have no time to read what they sign. That's a moron's excuse. Plus the LO usually isn't even at closing. It's held at a title company or a closing agent goes to the home. Closing agents, not the LO's, close loans.
I wasn't in collections but I'm tired of seeing these deadbeat borrowers pointing the fingers at everyone but themselves. Closing attorney's, title companies, closing agents, underwriters /processors all stand stiff penalties if they withheld disclosures and later forged them. It doesn't happen. My advice to all those future home buyers...read what you sign and ask your $1500 attorney what documents mean if you are confused. That's why you pay them. Take as much time as you need during the closing even if it's over 1 hour. They won't kick you out the door at minute 61 and lose their fees. Stop being foolish. Turn American Idol off and read your docs before agreeing to the biggest financial committment of you life.
Pinkey36

Elizabeth, NJ

#219 Sep 12, 2007
Curb the Rage wrote:
Dude, New York requires an attorney to be present at every closing. The consumer groups cried about that and won so now every borrower MUST pay $1000-$2000 for an attorney to sit thru the closing. So there is absolutely no excuse that the borrower didn't know what they signed. Stop saying the LO screwed them at the closing. Disclosures must be presented prior to closing (mailed to the borrower within 3 days of application) and again at closing. They have weeks to read the disclosures prior to getting to the closing table and for refi's they have an additional 3 days after the closing to read the signed loan docs before accepting the loan's disbursement. Stop saying they have no time to read what they sign. That's a moron's excuse. Plus the LO usually isn't even at closing. It's held at a title company or a closing agent goes to the home. Closing agents, not the LO's, close loans.
I wasn't in collections but I'm tired of seeing these deadbeat borrowers pointing the fingers at everyone but themselves. Closing attorney's, title companies, closing agents, underwriters /processors all stand stiff penalties if they withheld disclosures and later forged them. It doesn't happen. My advice to all those future home buyers...read what you sign and ask your $1500 attorney what documents mean if you are confused. That's why you pay them. Take as much time as you need during the closing even if it's over 1 hour. They won't kick you out the door at minute 61 and lose their fees. Stop being foolish. Turn American Idol off and read your docs before agreeing to the biggest financial committment of you life.
There is no New York law that states that when you are purchasing, selling or financing you are to have legal representation.

As for disclosures, RESPA requires that the prospective borrowers has certain disclosures such as the TILA, Application and Good Faith ESTIMATE within 3 business days of the loan application. That does not necessary mean that lenders are forwarding the documents to prospective borrowers. Over 70% of mortgage loans are generated by mortgage brokerage. Are you stating that mortgage brokers are forwarding these disclosures within 3 business days after taking an application. I really do not believe so.

Even if borrowers received a disclosure such as a Good Faith Estimate within the appropriate time line, remember, it is only an estimate. As to receiving TILA within 3 business days of the application, that does not guarantee that what is stated will occur. The interest rate is actually set 1 day prior to the closing unless the borrower is locked in. Borrowers are not aware that within 24 hours prior to the closing, they do have the right to see all loan documents that they will be signing at the closing. However, bait and switch still exist.
curb the rage

AOL

#220 Sep 18, 2007
Pinkey,
You are clueless. NY does require attorney present at closings. Also, the Banking Commission does monitor banks to verify proof of sending disclosures within 3 days of application. I ran a bank so I know they randomly visit twice a year and demand logs (such as overnight receipts) to verify we complied. They would call borrowers to spot check if they got them and if we failed to get it in their hands we would get substantial fines. And you are clueless about the broker disclosures. It is the responsibility of the lender, not broker, to provide disclosures. Think about it...the disclosures are about the loan being granted so it's the lender who needs to supply them. So when a lender preapproves, they send the disclosures. The broker is acting as an agent of the end-lender. Yes the disclosures go out. If you want to keep your banking license, you send them out. It's not worth the fine.
Also, lets say the borrower does not lock in early and floats to close. If you have disclosures that say your rate is 5% and you show up to the closing and the rate is 7%...than shame on you for signing the docs. I agree that the 22 year old green LO's will try bait and switch, but your are to blame for signing. But when I ran the bank, if the rate increased .000001% between the initial disclosures and final docs, the borrower had to sign a whole new set of disclosures. That is the law. So it difficult to bait and switch. Please stop defending the ignorant borrower who refuses to read what they are signing.
ejsmu

New York, NY

#221 Nov 15, 2007
Looking for Work wrote:
Is there a job board that has been set up for former AHM employees to look for a new job?
If there is please post it

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