Big Banks vs. Local Mortgage Companies

Happy Friday!!  For some of those who prefer Big Banks to smaller local mortgage origination companies, it is fair to note some of the following info below.  Just a tidbit if you will on what really happens as a spin-off or a ripple affect.  Now certainly banks are great for some things.  For example all of us feel much safer with keeping our money in any given account that is federally insured.  Of course this in turn allows them to give back to us a very small amount of interest so they can in turn loan our money out at 10 times the interest 😉  It is surely some sort of thank you to us.  But regardless of your take – Consider what you really get when you peel back the layers.  Don’t get us wrong – we’re all about profit just as well.  But wouldn’t you rather get a much better grade of customer service with a local company such as Green House Mortgage while at the same time taking pride in knowing that you had a small hand in helping establish a local company become a prominent force in the lending world in your very own community?  We would think so.  But take a look at the follow info and you be the judge.  After all what goes on in the real estate and lending industries affects us all.

Big Bank Tid-Bits:

We’ll catch up on the plethora of shutdown updates in a bit, but let’s spend a moment catching up with settlements. Because if the big guys can settle, maybe they’ll be amenable to settling with the little guys! According to a release from Citi, the bank will pay Freddie Mac $395 million, all of which is covered by its existing mortgage repurchase reserves as of the end of Q2. The agreement covers claims for breaches of representations and warranties on 3.7 million loans sold between 2000 and 2012. Jane Fraser, CEO of CitiMortgage, said the agreement “marks another important milestone in successfully resolving Citi’s remaining legacy mortgage issues.”

Even Wells Fargo has to pony up settlement money occasionally. “The Coach”said it will pay $780 million in cash to Freddie Mac to resolve substantially all repurchase liabilities on home loans sold to the government-controlled mortgage company prior to 2009. The largest U.S. mortgage lender said the settlement was reached on September 27 and totaled $869 million before adjusting for credits related to prior loan repurchases.

But Wells is not done. Like a dog on a Milk Bone, New York is going after the company over the lack of compliance in the servicing settlement.

SunTrust Banks has agreed to a $65 million settlement with Freddie Mac involving refunds it must make for faulty mortgages. ‘The accord covers about 312,000 loans made from 2000-08,’ SunTrust said this week in a written statement. The deal includes a one-time cash payment of $40 million to Freddie Mac and $25 million in credits for previous repurchases.

Bank of America has agreed to pay $32 million to settle charges that it made harassing debt collection calls to customers’ cell phones, in what is believed to be the largest cash payout ever under a 1991 law meant to protect consumers from unwanted calls.

Green House Mortgage is a full service home loan origination entity in Tampa, FL and servicing the state throughout. If you have any questions or concerns with the article or simply need mortgage advice please call 813-732-3155 or email us at info@ghmortgage.com. We are dedicated to giving you the best mortgage consultation available.  Green House Mortgage – It Pays to Go Green!