36 Responses to “Guest Blogger: Real estate lending” »»

1. confused
   Comment by confused | 06/30/11 at 6:44 am

   This is pure propaganda. Can you define what you mean by “lending money in a big way”, “this year loan to value, credit and PMI (private mortgage insurance) are turning more favorable”, “banks are scrambling to place money with historically low rates as the rental, interest rate, loan to value and risk/reward factors become so compelling” with actual numbers? What exactly is “a strong Boston real estate market?” Is it more sales than in the summer months of the mid-2000’s or more sales than January 2011? You’re claims may all be valid but without numbers and references it reads like a Sarah Palin speech to the Tea Party.

2. confused
   Comment by confused | 06/30/11 at 12:21 pm

   John did you google this guy before you let him post? I knew the name sounded familiar.

3. ed
   Comment by ed | 06/30/11 at 1:54 pm

   I agree with what he is saying. The
   guy knows lending. His point is it is on a favorable uptick which should lead to a better and growing real estate market. I found the comment very insightful and smart.

4. real estate pro
   Comment by real estate pro | 06/30/11 at 2:58 pm

   The article is interesting. The writer must be a real lending expert that knows what he is doing. It does appear to be loosening. His eyes and my eyes are seeing the same things happening. The market appears to be forming the foundation for an active market ahead. great article.

5. boston real estate sales
   Comment by boston real estate sales | 06/30/11 at 3:09 pm

   great , great, article….. the guy is a high quality lender…He really quite exceptional, knows everything about lending on all kinds of properties. Exceptional with clients.

6. Glendale Homes For Sale AZ.
   Comment by Glendale Homes For Sale AZ. | 07/01/11 at 12:22 am

   I think can affect the real estate agency, consumer can afford without O.D account and loans. . .

   Glendale Homes For Sale AZ.
   

7. John Ford
   Comment by John Ford | 07/01/11 at 2:18 am

   confused, to answer your question no I didn’t google him, however, he was very helpful to one of my agents in closing a couple of sales this month.

   I do agree with you that he should back up his claims with actual “numbers and references”

   Have a happy 4th

8. Mike
   Comment by Mike | 07/01/11 at 2:55 am

   Is this the same Edward R Voccola who was indicted by the SEC and pled guilty for several counts of securities fraud and wire fraud in 2002?

   And the three comments by “ed”, “real estate pro” and “boston real estate sales” seem to be written in the same tone as the post itself – long in strong, biased statements, but lacking data to support them. They smell like plants. Any prior posts from these posters, or did they suddenly show up and make their first comments in support of this post?

9. Mike
   Comment by Mike | 07/01/11 at 3:00 am

   The three comments by “ed”, “real estate pro” and “boston real estate sales” seem to be written in the same tone as the post itself – long in strong, biased statements, but lacking data to support them. They smell like plants. Any prior posts from these posters, or did they suddenly show up and make their first comments in support of this post?

10. Mike
    Comment by Mike | 07/01/11 at 3:01 am

    Ugh, sorry for the duplicate,and looks like the poster is from Arkansas, so less likely to be the MA person I referenced.

11. US Bank, no doc, MI>
    Comment by US Bank, no doc, MI> | 07/01/11 at 4:02 am

    The article is referencing I think US Bank 7th largest in the country wh just started doing investment properties after a three year banned on them in the last month. They also increase thei helocs to 85% from 80% and this year lower their credit scores. Not sure on this one but the no income program comes from a california bank who has a branch in boston, in the last week launched a program for single owner and non-owner, condo and townhouse for suffolk, norfolk, and middlesex counties. Personally recently did a 95% conventional loan with MI that close this week that blew away the costs and MI numbers on a FHA loan. this was the way it was when credit was easier. and finally, the people in the know, know that bankers are hungry for the commerical multi-family loan, just look at the interest rate, the fact that rents are are going up, the fact that properties values have hit the bottom. Where else on a low risk basis can a bank put their money to work. The article is totally supported. This guy article is right on, and accurate.

12. Mike
    Comment by Mike | 07/01/11 at 4:51 am

    How about some links to support, or some actual detail, poster US Bank?

    Boy, there sure are a large number of unusual or first time posters coming out to sing this guy’s praises, without providing any actual verifiable detail such as lender names, or links t websites. Quite unusual for this blog. Almost as if someone had an agenda…

13. wells fargo
    Comment by wells fargo | 07/01/11 at 5:09 am

    Wells Fargo loosening guidelines in jan, 2011 on FICO (credit scores). Check the web

14. Mike
    Comment by Mike | 07/01/11 at 5:25 am

    You mean this?

    http://www.trulia.com/blog/sam_thompson/2011/01/wells_loosens_fha_credit_score_requirements

    Basically, they will “look” at applications with lower than 600 FICO, but will require more money down before lending? This hardly seems like a “dramatic” increase, or that banks are lending “in a big way”.

    Or are you talking about this:

    http://www.inman.com/buyers-sellers/columnists/kenharney/ficos-and-fha-2-big-lenders-loosen

    where two lenders are backing off their “overlay” requirement of higher FICOs than required by FHA, where they will go all the way down to a FICO of 580, in line with FHA’s requirements? Again, this doesn’t seem like much if any loosening.

15. Mike
    Comment by Mike | 07/01/11 at 5:30 am

    Oh, and what’s the LTV of the “no income/no asset” loan? The only one I’m seeing in MA requires 35% down payment. Seems to me if someone has 35% to put down, borrowing is not their problem.

16. Big Way
    Comment by Big Way | 07/01/11 at 5:55 am

    What has been leading the changes was first in the commerical sector….there are many banks in the Boston area that are hungry for The residential commerical unit. Call around do your own survey but because I am in that busy, It is in a Big Way. The residential sector lags commerical but it is now taken off as professionals in this sector are growing their business. The loosening is causing this. It is not rocket science to realize that buyers will come into the market realizing what banks have already figure out on real estate that it is a good investment now (i.E. low risk now). By watching the commerical market you will get to the residential market. It is in a big way. We are coming……….

17. LTV and low income
    Comment by LTV and low income | 07/01/11 at 6:00 am

    LTVs are they will take less equity to do a loan. It is increasing all over the place. This suggests that properties have bottom. The no income and no asset is at 4.25% this is 5% less that the loans that have been around for the last 3 years. A brank new program targeting 3 counties suggesting the bottoming out that I talked about. I know this is State of Art thought process but the fact is the article is right on point. join us.

18. LTV and low income
    Comment by LTV and low income | 07/01/11 at 6:02 am

    I meant no income/no asset. It is an express program.

19. Mike
    Comment by Mike | 07/01/11 at 6:04 am

    Wow, look at all the first time commenters with spotty English all rushing to support this post! Looks like someone’s been busy creating fake duplicate accounts to make it look like there’s actually some credibility behind this post. How about some links, commenters? Or is this just a scam?

20. Tony
    Comment by Tony | 07/01/11 at 6:49 am

    I’ve been working with the mortgage broker who wrote this article for a number of years and have great faith in him. Many of my clients have been referred to him and virtually all have been extremely satisfied with the loan program he has suggested to them and the service he has provided. Mike is barking up the wrong tree on this one. Ed is no scammer. He is a student of his industry who knows how to find the best fit for the borrower. Just had a deal close with him on the 29th. The P&S and loan application were done on the 7th…Ed was proactive throughout the process and got the loan done in 22 days. Try beating that in the current lending environment.

21. Mike
    Comment by Mike | 07/01/11 at 7:37 am

    Tony, I have no doubts the writer is capable of placing loans. But the assertions made in his “article” seem completely opposite to what I’m seeing in the market, and are suspiciously self-serving. It smacks of the “good old days” where industry insiders fabricated excessive optimism to deceive less informed people to make a buck. That marketing mentality is what got us into such trouble in the first place. It sickens me that people profited so excessively as they destroyed peoples’ lives, setting them up for later bankruptcy and loss.

    For example, take the phrase, “The view is that properties in Boston and surrounding areas are viewed as good investments.” The assertion here is that the banking industry and investors consider Boston real estate to be a good investment. Well, if that’s true, why are indices such as Case-Schiller still falling? If it is true, then the writer should be able to point to some objective evidence that supports the claim. Or, one of the many supporters that felt compelled to create a new log in just to comment on this “article” should be able to point to something, anything that shows this isn’t just someone trying to deceive others into buying real estate at a bad time, so they can make a loan commission.

    Good for him (and you) that he is able to close a loan and has customers. Most of the very worst, bottom-sucking scam artists that originated mortgages before the crisis could say the same thing. That didn’t make them experts on real estate, and certainly didn’t make them a trustworthy source for guidance on the markets. Quite the contrary.

    I fail to see why originating loans gives him ANY credibility in asserting the Boston real estate market has turned hot. The ability of the writer to place a loan, or have happy customers has no bearing on his qualifications to predict the market. None.

    The whole article reads like the typical propaganda garbage turned out by the real estate industry that caused so much heartache during the collapse.

    You want to convince me I’m barking up the wrong tree? How about providing any support for his allegations that people should stop being cautious in these ongoing times of market dislocation.

22. Jason
    Comment by Jason | 07/01/11 at 7:44 am

    Mike, I’ve been reading this blog for the last 3 months, and yes I’ve left comments, I find your comments usually insightful and well thought out. However, you’re way off base on this one.

    I know Ed, he’s well known in the Boston real estate and mortgage industry for being honest and getting the deal done.

    Just thought you should know.

    BTW – I’m sorry for any typo’s or sentence structures that don’t meet your standards.

23. Jason
    Comment by Jason | 07/01/11 at 7:52 am

    Mike, I wrote the previous comment before reading your last comment. If Ed doesn’t give you links I will. On one condition, I want to write the next mortgage industry blog post. What do you say John? Up for the challenge?

24. John Ford
    Comment by John Ford | 07/01/11 at 8:09 am

    Ed, help me out here, please provide us with links, article references something to back up your claims.

25. Jason
    Comment by Jason | 07/01/11 at 9:01 am

    Ed,, do you need my help?

26. Paul
    Comment by Paul | 07/01/11 at 9:12 am

    Who cares…

27. Paul
    Comment by Paul | 07/01/11 at 9:21 am

    The bottom line is this…. Mike is the ONKY LOGIC voice on this Blog. Ed, stop stop the bullshit. There are know No Loan Docs.

    Your lack of responding to MIke’s questions tells us your lack of knowledge of the Boston mortgate industry. SHAME ON YOU JOHN – for allowing Ed to blog on this website. YOu SUCK! I lost respect for you. I’ll never read this Boston Real Estate Blog again!

28. John Ford
    Comment by John Ford | 07/01/11 at 9:33 am

    Paul, sorry I let you down. Your comments are always welcome here. Please keep that in mind if you go to another Boston Real Estate Blog. Your negative comment will never be deleted. Can you remember that when you go to Coldwell Bankers web site.

    Happy 4th….

29. Tony
    Comment by Tony | 07/01/11 at 9:39 am

    Mike, I can’t disagree with your assertion that there were a lot of scam artists out there in the “good old days”. Thankfully, many of them have left the business due to licensing procedures that have been put in place as well as new regulations about broker compensation.

    I think Ed may have gone off on a tangent a bit with regard to the state of the real estate market in Boston. While it is not wrong to assert that good investments exist out there (in the form of REO properties, short sales and auctions), I wouldn’t be inclined to say that things have turned around and Boston is hot. It would be more correct to say that Boston has stabilized after weathering the storm better than many other markets. I was recently reading an issue of the Palm Beach Post that was comparing recent sales of properties to their previous sale prices. Many areas in South Florida have seen prices return to where they were in the mid-1980s. Few, if any, Bostonians can say they’ve lost 60% or more of their investment.

    I think the point of the article was that after the horse was out of the proverbial barn, lenders tightened up their requirements to the point that it was almost impossible to obtain financing without a significant deposit (and even large sums of up-front money wasn’t always good enough if one were looking to finance the purchase of investment property), and that now banks have begun to relax their lending parameters a bit, making it advantageous to consider jumping back into the market. Things are still tenuous, so caveat emptor, but I’m sure John would agree that it’s not a bad time to be looking…and Ed is trying to convey to the buyer that he shouldn’t despair, there is available money out there and banks are willing to lend again.

30. ed voccola
    Comment by ed voccola | 07/01/11 at 4:33 pm

    The program about the no income/no asset is absolutely true….They will do it at a 60% loan to value for single families , owner , second home, investment, condo or townhouse, The property has to be in norfolk, middlesex or suffolk county. It can go up to 2,000,000 loan size, the rate currently is 1% over prime. It can be in any type of entity, trust, LLC, corporation. It is call their express program, Just launched in the last two weeks. The property has to be under 10 acres. I had one 15.8 thought about subdivided the deed. I used this as an example of loosening up. I have a 5-1 arm at 4.75% at 70% for business owners . I have place 4 loans in this product. If people want to talk to me, please call 617-233-5555, but it is no BS, it is the beginning of changing times.

31. ed voccola
    Comment by ed voccola | 07/01/11 at 4:43 pm

    Ok to all the posts out there I ask you,,,, if banks are loosening, isn’t it logical that there is a confidence that properties have bottom and real estate is in there judgement a good investment. I find funny that whoever doubts this article, well your entitle to your opinion and I respect that, I really do, but your wrong, this is the time to start buying real estate in the Boston area. Look at the your alternatives, CDs, stock market bonds. My article is right on point. The loosening has been going on for 6 months and many , many lenders are involved. Not only do I work in Real Estate, I am involved with several properties personally…Again My number is there.

32. ed voccola
    Comment by ed voccola | 07/01/11 at 4:54 pm

    Paul, with all do respect, I have been around for awhile. you subscribe to the word never…I love hearing that because I never say never..you owe everybody an apology because you are assuming your right, there is always people out there that know more than you and me. in this case I know more then you. Would you like to put a wager for fun on the no income, no asset program that I describe. Here what we will do, I will produce the documents to John…if cant’t I will write an apology ( note I already have the document so this one happen) If john gets the document you will issue an apology… Be a man Paul, you shot your mouth off let’s put your to where your mouth is. Ed

33. ed voccola
    Comment by ed voccola | 07/01/11 at 5:07 pm

    Well Paul what about the challenge? I can give John the materials on the no income/no asset program….If that happens, be a man tell everyone that your one of these people that uses never all the time.. and a apology must be issue… Well I am waiting.. are you a man that honors your challenge…i feel this is a little unfair, but their could be a good lesson for you.

34. ed voccola
    Comment by ed voccola | 07/01/11 at 5:35 pm

    SeekingAlpha.com June 15, 2011 U.S. banks loosening standards to boost lending

35. John
    Comment by John | 07/01/11 at 5:43 pm

    I know Ed for 20 years..This guy is an expert in so many areas, shoukd have listed his schooling but he is too modest, 4 degrees,,,and his successes… He is super smart and many times gets referrals from other mortgage brokers because he is at that level…really knows the business and most importantly knows what is right for the client, I know he has done 15 loans for my family. His insights is so on point. I would only use him.

36. Mike
    Comment by Mike | 07/06/11 at 3:11 am

    Ed may be smart, a good lender, etc., but his post reeks of the hyperbole that caused so much destruction in the past. “Banks are landing money in a big way”, “The view is that properties in Boston and surrounding areas are viewed as good investments” , “banks are scrambling”.

    Seriously? Compared to what? The Great Depression? The intent of the post seems to be to persuade people that the last five years didn’t happen, and they should act as irresponsibly now as they did then, paying top dollar because banks are “scrambling”.

    Any time anyone suggests the reason to buy a home is because “real estate is a good investment”, to me it’s a big red flag. If it’s such a good investment, why aren’t you out there investing? Oh, that’s right, you make your money by getting the other sucker to “invest”.

    For anyone other than a real estate professional, a house is a place to live, not an investment.

    Ed, if you’re a licensed financial adviser, then you’d be well positioned to discuss the investment merits of real estate. But if instead you have a vested financial interest in having others think real estate is a good investment, pardon me if I look suspiciously at your self-serving words.

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