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The Lender Police – Lenders Watch Out

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There’s a new Sheriff in town

For $99 bucks consumers can fax over their good faith and for $199 they can fax their Loan docs and have them reviewed by Lender Police to make sure you’re on the the level with buyers.

I report, you decide.

 

Benn Rosales is the Founder and CEO of The American Genius (AG), national news network for tech and entrepreneurs, proudly celebrating 10 years in publishing, recently ranked as the #5 startup in Austin. Before founding AG, he founded one of the first digital media strategy firms in the nation and also acquired several other firms. His resume prior includes roles at Apple and Kroger Foods, specializing in marketing, communications, and technology integration. He is a recipient of the Statesman Texas Social Media Award and is an Inman Innovator Award winner. He has consulted for numerous startups (both early- and late-stage), has built partnerships and bridges between tech recruiters and the best tech talent in the industry, and is well known for organizing the digital community through popular monthly networking events. Benn does not venture into the spotlight often, rather believes his biggest accomplishments are the talent he recruits, develops, and gives all credit to those he's empowered.

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8 Comments

8 Comments

  1. Matt Wilkins

    June 23, 2008 at 1:32 pm

    Interesting service. I just wonder how many people will actually wan to fork over the money to have this done. Most of my buyers expect me as their REALTOR to scan ofer their GFE for any glaring errors or omissions. However, I can see the call to action with all of the loan scams coming to the service (Metropolitan Money Store being a prime example).

  2. Tyler, The Wealth Creation Guy

    June 23, 2008 at 4:16 pm

    It’s really too bad this is what the business has come to. I can see the benefits of using such a service though.

    Honestly – just find mortgage lenders that you can trust. Usually if you have to ask if you’re getting screwed, you’re not getting the service you deserve.

    Yikes.

  3. Jason Sandquist

    June 23, 2008 at 4:40 pm

    What’s next a video camera bustin into an mortgage office ‘Cops’ style. Seems a little spendy for a couple of minutes of work, but then again their going to argue about saving tons of $$$ over the life of the loan.

    Touching on @Tyler, somebody should be able to find somebody to trust with all the ‘amazing’ products online these days (that’s being carrying a little sarcasm).

    Just somebody trying to make a buh

  4. Matthew Rathbun

    June 23, 2008 at 7:29 pm

    Premise – Ok, but I think Agents should be able to look over these things and know what doesn’t seem right.

    Price – too high

    Question – How is this not providing legal advice?

    Echo – Sad that this is a necessary service; but I get it.

  5. Paula Henry

    June 23, 2008 at 9:04 pm

    It’s unfortunate a company like this is needed! As an agent, I do look at my clients good faith estimate – if they use my lenders, I know they won’t get a bad deal.

    Recently, though, an out-of-city client used their local lender. I asked the lender for a copy of the GFE, asked my clients to have her send me a copy, never did get it. I wanted to see their costs before I wrote the offer. Instead, the lender told them to tell me they needed $2500. in closing costs.

    No surprise at closing, they paid 3.0% YSP. A service like this would have saved them 1000’s. Or, they could have made sure I received a copy. Sadly, the trust factor has suffered in our industry 🙁

  6. Ken Smith

    June 23, 2008 at 9:31 pm

    Think that there will be a crop of scams services like this over the next few years. Some will be legit, but most will be just playing on the fears of the general public. $200 to take 5 minutes to review the docs seems way to high.

  7. Shailesh Ghimire

    June 23, 2008 at 9:44 pm

    I got an email from these guys last week and I just deleted it thinking it was one of those wacky vendors trying to sell me something. But now that I looked at it closer, I can see a good use for this. Again, like Matt said earlier, I wonder how many folks will actually pay for this. Wouldn’t just faxing a few lenders each others GFE’s suffice?

  8. Joe Aldeguer

    May 18, 2009 at 10:30 pm

    Abhorrent practices by lenders within the mortgage industry are called abusive lending. Choosing the right lender is not easy… Earned or borrowed cash are all at stake, specially your home. That’s why it is very important to be watchful and evade those Rapacious Lenders.

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Economic News

How small businesses can keep up with the changing workforce

(ECONOMIC) Trade schools are booming as career outlook grows. College enrollment is down. The workforce is changing. How can small business keep up?

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Trade employees in the workforce

College enrollment has dropped off by three million in the last decade, with a drop-off of one million due in the last several years as a direct side effect of the Covid-19 pandemic. This phenomenon clearly does not bode well for the future of the United States’ economy and workforce, with students who attend low-income schools and come from low-income families being the most affected. These changes are disproportionately affecting students from low-income schools and families, the very people who need higher education the most, and are erasing much of the work done in the last decade to help close the income and race gap between students, colleges, and socioeconomic backgrounds.

Enrollment in trade schools is skyrocketing.

Recently, trade schools have seen a 40% bump in enrollment across the board. Many students are enticed by the fact that trade schools are affordable and offer a quick turnaround, with students paying $16,000 or less for their program, and their training taking a year or less to complete. Beyond that, those who complete trade school is all but guaranteed a job on graduation day. Their earning potential is often two or even three times higher than the initial cost of attending the program. As many have found, the same cannot always be said about those who pursue a college education.

While the average cost of college at an in-state and public institution hovers at around $28,775 per year (according to Forbes) and takes an average of four years to complete means that trade students have a cheaper educational cost, (between $16,000 to $33,000 for the entire program, or about equal to just one year of a public college tuition) can get work in their field more quickly, and can usually make more than their educational costs in their first year on the job. Tradespeople make an average of $54,000 fresh out of trade school, which rivals the role average college student’s first salary of $55,000. It’s no wonder so many people are choosing to forgo a formal education for trade school!

The almost insurmountable cost of college combined with ever-growing inflation and a lengthy list of requirements just to get a post-college job, all for a low salary and with students having hefty loans to pay back, also play a key role in the downturn in the popularity of college.

The implication of fewer college-educated people, however, means that over time, the United States as a whole could face an economic downturn, as it gives rise to many more blue-collar workers. This can irrevocably alter the makeup of the workforce. Despite current unemployment rates being among the lowest they’ve ever been, the American people are already starting to see a shift in the labor market.

Already, we see a strain in the labor market when 25% of skilled workers in the U.S. exited the workforce following the Covid-19 pandemic. The economy has become so highly specialized that if the U.S. were to keep up the trend of losing college-educated workers, there could irreversible damage to the United States’ economy, deepening the ever-growing divide between the middle class and the working class, further reducing the ability to affect the global economy, knocking the United States out of the classification of a “global superpower.” To make matters worse, much of the United States labor pool is outsourced, and we are seeing the rise of artificial intelligence and robotics taking over many jobs, especially minimum wage jobs. While none of these factors alone vastly affect the U.S. labor market, this is only the tip of the iceberg.

So what can employers do when the makeup of the workforce starts to shift?

Employers could shift the focus on the years of experience rather than the type of education the potential employees have, as well as offering more extensive on-the-job training, which is already commonplace in some industries. Even for those with a college education, the requirements for entry-level jobs seldom match the salary, with many employers requiring a four-year degree, two or more years of experience, and fluency in different programs which vary from company to company. Employers, if possible, need to offer higher salaries with fewer requirements, as many young people are finding the pursuit of college, plus the various other requirements just to be considered for a barely above minimum wage job, while they’re drowning in student debt fruitless, so they forgo college altogether.

A post-pandemic society looks vastly different, and employers must adapt to keep up.

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Economic News

Boomers retirement may be the true reason behind the labor shortage

(ECONOMY) Millennials and Gen Z were quick to be blamed for the labor shortage, citing lazy work ethic- the cause could actually be Boomers retirement.

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Older man pictured in cafe with laptop nearby representing boomers retirement discrimination.

In July, we reported on the Great Resignation. With record numbers of resignations, there’s a huge labor shortage in the United States. Although there were many speculations about the reasons why, from “lazy” millennials to the number of deaths from Covid. Just recently, CNN reported that in November another 3.6 million Americans left the labor force. It’s been suggested that the younger generations don’t want to work but retiring Boomers might be the bigger culprit.

Why Boomers are leaving the labor force

CNN Business reports that 90% of the Americans who left the workplace were over 55 years old. It’s now being suggested that many of the people who have left the labor force since the beginning of the pandemic were older Americans, not Millennials or Gen Z, as we originally thought. Here are the reasons why:

  • Boomers are more concerned about catching COVID-19 than their younger counterparts, so they aren’t returning to work. Boomers are less willing to risk their health.
  • The robust real estate market has benefitted Boomers, who have more equity in their homes. Boomers have more options on the table than just returning to work.
  • Employers aren’t creating or posting jobs that lure people out of retirement or those near retirement age.

As Boomers retire, how does this impact the overall labor economy?

According to CNN Business, there are signs that the labor shortage is abating. Employers are starting to see record number of applicants to most posted jobs. FedEx, for example, just got 111,000 applications in one week, the highest it has ever recorded. The U.S. Bureau of Labor Statistics projects that the pandemic-induced increase in retirement is only temporary. People who retired due to the risk of the pandemic will return to work as new strategies emerge to reduce the risk to their health. With new varients popping up, we will have to keep an eye on how the trend ultimately plays out.

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Economic News

Is the real estate industry endorsing Carson’s nomination to HUD?

(BUSINESS NEWS) Ben Carson’s initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now?

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NAR strongly backs Dr. Carson’s nomination

When President-Elect Donald Trump put forth Dr. Ben Carson’s name as the nominee for Secretary of Housing and Urban Development, NAR President William E. Brown said, “While we’ve made great strides in recent years, far more can be done to put the dream of homeownership in reach for more Americans.”

At the time of nomination, the National Association of Realtors (the largest trade organization in the nation) offered a positive tone regarding Dr. Carson and said the industry looks forward to working with him. But does that hold true today?

The confirmation hearings yesterday were far less controversial than one would expect, especially in light of how many initially reacted to his nomination. Given his lack of experience in housing, questions seemed to often center around protecting the LGBT community and veterans, both of which he pledged to support.

In fact, Dr. Carson said the Fair Housing Act is “one of the best pieces of legislation we’ve ever had in this country,” promising to issue a “world-class plan” for housing upon his confirmation…

>>>>>Click to continue reading…<<<<<

#CarsonHUD

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