Changes in the Home Loan Process

A reader who happens to be a mortgage loan originator send along this awesome graphic.

To me, it calls bullshit on the WSJ article I referenced this morning by sending along the following flow chart along detailing the “massive changes about to be unleashed upon real estate industry.

Or not . . .


click for ginormous version
changes in home loan process






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What's been said:

Discussions found on the web:
  1. DeDude commented on Sep 30

    Now if lenders were forced to hold the mortgages they originate for at least 5 years most of all these boxes could go away. If they really wanted simplification then they would lobby for that. But no they want continued freedom to rob the borrowers and rob downstream investors – with no accountability and no restrictions. So they whine that adding just one little more box demanding that they inform the borrower and no longer can pull a fast one on them, will be the end of the world.

  2. DSS10 commented on Sep 30

    The question that no one seems to ask is why is it I can buy or sell a used car with out the assistance of a half a dozen “professionals” even though the car may be financed or subject to a lien? The real estate industry in the united states is nothing but a legislated grifting organization providing no value while adding unnecessary risk to a simple transaction.

  3. theexpertisin commented on Sep 30

    Realtors have been going through seminars and angst worried about the many pitfalls (none listed above) on real estate closings – especially contingency sales.

    I agree that Realtors are a costly nuisance for seasoned property investors. But, like Big Government, they serve a purpose for fools that trip over their own shadow.

  4. sellstop commented on Sep 30

    If you pay cash it only takes about 3 days total. I’ll bet if people were putting 20% down the process would have stayed simple.

    • Lyle commented on Sep 30

      Not surprising because in a cash sale there is no mortgage company involved. I recall when I sold my house in Houston the closing got delayed because the mortgage company person did not get the closing instructions out on time. But if you think about it for a cash sale you need to know if the taxes are paid, and if there are other liens on the property, are there deed restrictions, as well as the owner title insurance policy.

      Of course if the states were to adopt the Torrens title to make the registered title making it an absolute title, it would simplify the process by putting tittle companies out of business. So of course it will never ever be put in place because it would unemploy so many folks.

  5. Slash commented on Oct 1

    You want them to wait 3 whole days (if I’m reading this chart correctly) for their share of the money?

    You monster. Why do you hate America?

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