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Schumpeter Reincarnate


Joined: 24 May 2008
Posts: 218007

Re: Discussion on Residential Loan Centers of America
PostPosted: Mon Feb 16, 2009 7:19 pm Reply with quoteBack to top

http://ml-implode.com/imploded.....02-16.html
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rgrosse
Dud?


Joined: 16 Feb 2009
Posts: 1

Re: Discussion on Residential Loan Centers of America
PostPosted: Mon Feb 16, 2009 9:49 pm Reply with quoteBack to top

Just interviewed one of their LO's in Illinois, and he received a call this past weekend from the owner stating that their warehouse line of credit had been pulled, and they are forced to file BK.
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NOKIDDING327
Dud?


Joined: 17 Feb 2009
Posts: 22

Re: Discussion on Residential Loan Centers of America
PostPosted: Tue Feb 17, 2009 3:50 am Reply with quoteBack to top

I JUST LOOKED UP THEIR FHA DEFAULT RATIO;

MAYBE A 320% RATIO IS A GOOD REASON TO LOSE YOUR WAREHOUSE LINES. DAH!
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reflection14
Dud?


Joined: 17 Feb 2009
Posts: 1

Re: Discussion on Residential Loan Centers of America
PostPosted: Tue Feb 17, 2009 6:03 am Reply with quoteBack to top

Where did you find that 320% statistic? Does not seem feasible the company would have been able to maintain their DE Underwriters if that were the case.

I also think it's deplorable that former employees would bash a company that actually gave them a lot. Great character people. I hope you stay out of the service industry.
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NOKIDDING327
Dud?


Joined: 17 Feb 2009
Posts: 22

Re: Discussion on Residential Loan Centers of America
PostPosted: Tue Feb 17, 2009 11:08 am Reply with quoteBack to top

Response to reflection14:

I went to HUD.gov and then to LENDERS and then to Neighborhood watch:

here is what is there:

Single Lender - Originator by Institution
RESIDENTIAL LOAN CENTERS OF AMERICA - 13686
Lender Originations in the United States
Default Choice - Current Defaults
Performance Period - 01/31/2009
Sort Order by Percent of Defaults and Claims in Descending Order
Data shown includes all insured single family loans with beginning amortization
date between February 01, 2007 and January 31, 2009
Rank United States Compare
Ratio Total
Orig. Total
in
Default Total
Claims Total in
Default
and Claim % in
Default
and Claim United States
Total Orig United States
Total
in
Default United States
Total
Claims United States
Total in
Default
and Claim United States
% in Default
and Claim
1 United States [b]320%[/b] 3,775 529 21 550 14.57 1,891,505 81,715 4,427 86,142 4.55


My problem is that HUD says that ratios over 200% should be closed.
For some reason they let them sit there for months and do the federal review for months and months over 300%

It is telling that 90% of the ones closing down have a ratio over 300%, and they all wonder : oh me, WHY? it comes down to they should have been shut down for the kind of business they do, MONTHS AGO
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Robin
Sentinel


Joined: 30 Aug 2007
Posts: 3416
Location: Loveland, OH

Re: Discussion on Residential Loan Centers of America
PostPosted: Tue Feb 17, 2009 5:33 pm Reply with quoteBack to top

Here's the info from HUD's Neighborhood Watch in a more readable format:

Image


(If the graphic does not display properly and you are viewing the "Comments" posted on the Listing page, click the "go to forum thread" link)
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devestated123
Dud?


Joined: 19 Feb 2009
Posts: 2

Re: Discussion on Residential Loan Centers of America
PostPosted: Thu Feb 19, 2009 11:25 pm Reply with quoteBack to top

Let me first of all say that anytime a company closes in such a manner that there are a lot of lives that are being affected. I am one of those people. The worst part about it is that we all recieved our checks via direct deposit, only to have them taken back today and now have negative accounts because of it. If anyone has ever been in this position any advice would be greatly appreciated.

As far as the default rate is concerned, please be aware that there were several branches that made up RLCA Inc. Including one in WI and several in other numerous locations. Each branch had their own default level. So were there a some LO's that put customers into loans they couldnt handle which resulted in default, sure. I am willing to bet that every single mortgage company out there has an LO or two who has done the same thing. Does one or two bad apples spoil the whole bunch, absolutely! But it doesnt change the fact that now we are all sitting here with negative accounts and scrambling to find jobs. Sad, just very sad.
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NOKIDDING327
Dud?


Joined: 17 Feb 2009
Posts: 22

Bad Apples
PostPosted: Fri Feb 20, 2009 3:51 am Reply with quoteBack to top

Sure there are bad apples in every company; this is not about the Loan Officers, it is about the Company who underwrites and approves the loans.
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neums75
Dud?


Joined: 20 Feb 2009
Posts: 1

Re: Discussion on Residential Loan Centers of America
PostPosted: Sat Feb 21, 2009 8:11 pm Reply with quoteBack to top

Yes what happend to RLCA is very unfortunate. Instead of bashing the owners, the company, blaming the FHA default rate etc, step back and think for a minute what are the 4 owners going through? They had spent 11 years of there life building up a company and then watching it fall. I really truly don't think they are intending to screw anyone. I have been through this several times with companies closing just like this one and unfortunley most of the time you do not get paid, but I truly feel that it was never there intention to do so. How can some of you ex-employess bash the owners over company email? Just remember they did ALOT for us in many ways. I am sure many of you would agree with me.

Yes, RLCA did have a high FHA default ratio, however they still had to follow the guidelines of Countrywide so they would be able to sell the loan back to them, so therefore you cannot blame the uw's. All of there underwriters had many years of FHA expirence behind them.

We are in a recession, hundredes of people are losing there jobs everyday so how can they make there mortgage payment if they are out of work. RLCA was a big FHA mortgage banker so the risk of default would be greater than you typical Mom and Pap shop.

Take this as a learning experience and hopefully this will not happen to any of us again.
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devestated123
Dud?


Joined: 19 Feb 2009
Posts: 2

Re: Discussion on Residential Loan Centers of America
PostPosted: Mon Feb 23, 2009 1:43 am Reply with quoteBack to top

I would like to make a comment on the comment made by user "nokidding327". Where would the UW's be without LO's? If it were not for the LO's there would be no loans to underwrite. So when you say this is not about the LO's and its about the UW's I dont think that is correct statement. This is about every single person who individually and as a whole made up the company, originated loans, processed them and underwrote them. Again as the poster above stated think about the owners. Do you really think that it was their intention to close down all operations and leave all of us without jobs? I assure you not. Do I think that things could have been handled differently? Most definetely. Being fired via email is not something that I have ever experienced in my life and dont wish to ever have that happen again. My only question at this point is did they see this coming and not say anything until the last possible moment. I think that is the hardest thing that we are wrestling with here. I find it very hard to believe that they knew nothing until that Sunday evening. I gave this company my all and I guess I just expected a little respect in return. I didnt get that, and that my friends is what I am struggling with. As big of a company as RLCA was they always gave the "family" feel to all of their employees and this just isnt the way that it should have been handled. I can deal with companies closing for reasons such as this, that is a big thing to lose your line of credit. But just give back the same respect to all of your employees who helped make the company what they were and go about it in a different manner. There are lots of you that will sit here and bash the company and point fingers and state things such as we should have lost our FHA license a long time ago, but just remember this one thing, all of us in the mortgage industry dont have any sort of job security at this moment and each and every one of you could be sitting in the very same boat that myself and numerous other people are sitting in. So be a little kinder in what you say cause it could happen to you. None of us are immune to this in the market we are experiencing right now. Be careful what you say, because Karma can bite you when you least expect it.
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