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Banker - Realtor Ally with Builders to Fight "Constant Negativity"

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Terrel L. Shields

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Arkansas
This letter arrived today. I'd laugh out loud if it didn't make me so mad.

Metro is one of the banks who has made it all happen. They loaned any amount to anyone and then got cold feet. Jerked $12 million out from under a builder and he is now suing them for $70 million or some such.

Now they want us to join hands like the good "team players" we are and tell the so-called truth about what a great time it is to buy a house. What a crock of crap.
 
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Workbox

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The weekly or daily mantra from RE franchisees is that it's the media it's all OK in OZ.
 

Mountain Man

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I agree with him... it IS a great time to buy. I've gotten several excellent deals lately. But when people are scared and uncertain about their JOBS and their ability to PAY BACK the loan, they aren't going to part with their "emergency cash"... which seems to be an Equi-line now daze. :new_silly:
 

Terrel L. Shields

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Arkansas
uncertain about their JOBS and their ability to PAY BACK the loan,
which suggests until that changes the market could weaken further. It's not the media's fault that banks like Metro loaned with few restrictions. It's not the media's fault that property was over-priced, and builders were paying too much for land, and over-building like mad.
I think there are always bargains somewhere in the marketplace, but I think with prices like they are, you have plenty of time to buy before the next wave of price increases....maybe several years. If so, then "now" is no time to speculate...and much of the market in NWA consisted for speculators, not people needing a place to live.
 

Workbox

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Colorado
Damage control......

As some of you may recall, several years ago our office created an affiliated business arrangement (ABA) with XXXXXX Mortgage. Although the ABA was somewhat successful, the long term performance was below expectations. At the same time, the office was in desperate need of additional space which was not available in our old location. For these reasons the ABA with XXXXX Mortgage was dissolved & we utilized the space they were occupying.

Since that time, XXXX Realty has implemented a new set of standards that instructs us to derive up to 10% of our annual revenue from “non-commissioned” activities (such as title insurance, mortgage origination, home warranty and/or property insurance).

Given the drastic changes within the lending industry over the last year, we felt this would be the perfect opportunity to re-launch an ABA with a reputable lender. It’s time we had a little more accountability with some of the lenders our buyers are using. Effective January 1st, 2008, an affiliated business arrangement was created with XXXXX Mortgage. XXXXXX Mortgage has extensive experience with ABA’s involving several builders & real estate brokers including other XXXX locations.

The loan officer selected for our onsite ABA is XXXX. zzz has already been working with some of our agents who speak highly of the way he operates. Further, the owner of XXXXX Mortgage is part owner of another XXXX Franchise. This makes XXXXX Mortgage a strong cultural match with our office.

XXXX has moved into the office directly behind the xxxxx area. Please stop by and introduce yourself. If you are unable to do so you can call him at xxxxx or send an email to xxxxxx.

One of the main goals for this new ABA with XXXXX Mortgage will to provide better options to those buyers that have inadvertently connected with predatory and/or internet based lenders. Often the track record of these lenders reflects poor performance & inflated fees. Another primary objective of the ABA is to increase the revenue of the office thereby increasing profitability and profit share. The final objective of this ABA will be to provide an opportunity for a few of our agents to continue their XXXX journey to becoming Millionaire Real Estate Agents by participating in other business opportunities (more detail to follow).

We are fortunate to have several reputable, service oriented mortgage vendors that support our office & our clients. For those of you that have already established relationships with these preferred mortgage vendors, please continue to support and use those vendors at every opportunity. It’s not our wish to have a negative impact on any of these beneficial relationships. Furthermore, so that we don’t have a detrimental affect on our current mortgage vendors, we’re projecting a relatively low capture rate (less than 9% of our 2007 closed unit count) for the XXXXXX Mortgage ABA

I hope you will all help me in welcoming XXXX aboard. Please introduce yourself and give him an opportunity to help one of your FHA, Conventional and/or VA buyers when appropriate.



Wishing each of you a great 2008!!.
 

Non Sequitur

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Louisiana
Terrel, all they're asking for is the cost of one appraisal. Send them a price list from any one of the AMCs. I'll bet they'll be more than surprised at what we get paid.
 

Terrel L. Shields

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Arkansas
BTW, if you were an appraiser who worked for this bank, do you think this is a subtle shakedown? I mean don't you think it might affect whom they will chose to appraise houses for a while. And if you did just a few of them for them, wouldn't you figure to lose business if you don't kowtow to the letter and "help" fight the negativity that was created by the jerks who now want to PR their way out of a mess?
 

murray stroupe

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Apr 27, 2005
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State
Tennessee
Re; Fight Negativity

This letter arrived today. I'd laugh out loud if it didn't make me so mad.

Metro is one of the banks who has made it all happen. They loaned any amount to anyone and then got cold feet. Jerked $12 million out from under a builder and he is now suing them for $70 million or some such.
=================
Good win in the fight against dary farm negativity.

Wonder why that bank ''jerked 12 million'';
banks make money from loans, some from savings, so one has to wonder why loan was not extended ???
 

Terrel L. Shields

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Arkansas
so one has to wonder why loan was not extended
In a nutshell, Tom Terminella (real name) was over-extended with a number of banks and gathered all them together to try a work out deal. Metro refused to agree and a subdivision under construction was terminated as Metro called in the loan (which apparently was not in arrears at that point.) Metro is trying to get a gag order on Terminella. Methinks they don't like airing their dirty laundry. BTW, Metro is new to NW Arkansas, but our forum members "down there" in Little Rock don't mince many words about the pressure they get from 'em.

http://www.arkansasbusiness.com/article.aspx?aID=102217.35886.114341&k=gag+order

Metro is trying to shut up this builder.... I guess it s only $50 million...ha ha.
 

George Hatch

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California
What's scary is that these buffoons actually believe that this is an artificially created problem that is solely the product of media reportage.

Fortunately, a declining market weeds out the idiots.
 
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