silver-eagle
En-Route
The Wall Street Journal is reporting Bank of America has agreed to buy Countrywide Mortgage. Perhaps we should refer to BoA as a Highlander.
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- Thread starter silver-eagle
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JohnR
Final Approach
Can we hack its head off with a sword?
All the more reason to use our local credit union.
All the more reason to use our local credit union.
Ken Ibold
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Ken Ibold
The mortgage mess
The news today that Bank of America will buy Countrywide Mortgage to rescue it from bankruptcy is no surprise to me.
We moved to Jax just as the home market was starting to lose steam. It was active, but only just starting to cool. We had a lender lined up for the house and were offered a decent rate. The package of forms sat on my desk waiting for me to gather my records, copy them and return fed ex. Then the relocation specialist retained by my wife's employer happened to click on something.
"You're self employed, right?"
"Yup."
"Well, Countrywide has a program specifically for self-employed people."
She then proceeded to tell me about a fixed rate mortgage that had lower rates AND costs than the fixed rate mortgage we were planning on -- lower in fact than the going rates for even non-jumbo mortgages. Sounded good so far. But the kicker was that they required NO income or asset documentation of any kind. A simple one-page form on which I listed our income, assets and liabilities. Sign it and fax it back. Done.
Gawd, is it any wonder they had a problem with bad loans?
The news today that Bank of America will buy Countrywide Mortgage to rescue it from bankruptcy is no surprise to me.
We moved to Jax just as the home market was starting to lose steam. It was active, but only just starting to cool. We had a lender lined up for the house and were offered a decent rate. The package of forms sat on my desk waiting for me to gather my records, copy them and return fed ex. Then the relocation specialist retained by my wife's employer happened to click on something.
"You're self employed, right?"
"Yup."
"Well, Countrywide has a program specifically for self-employed people."
She then proceeded to tell me about a fixed rate mortgage that had lower rates AND costs than the fixed rate mortgage we were planning on -- lower in fact than the going rates for even non-jumbo mortgages. Sounded good so far. But the kicker was that they required NO income or asset documentation of any kind. A simple one-page form on which I listed our income, assets and liabilities. Sign it and fax it back. Done.
Gawd, is it any wonder they had a problem with bad loans?
Skip Miller
Final Approach
Re: The mortgage mess
The people who bought the loans sold out quickly - they securitized it and sold it in pieces on Wall Street.
Wall Street buyers looked only to the ratings provided by S&P and the like.
And S&P and the like didn't know what they were doing when it comes to the new alphabet soup Wall Street products like CDOs, SIVs, etc.
-Skip
They didn't care, because they were selling 100% of the loan as soon as possible. They collect the fees and move on.
The people who bought the loans sold out quickly - they securitized it and sold it in pieces on Wall Street.
Wall Street buyers looked only to the ratings provided by S&P and the like.
And S&P and the like didn't know what they were doing when it comes to the new alphabet soup Wall Street products like CDOs, SIVs, etc.
-Skip
Re: The mortgage mess
It is to me. They're EVERYWHERE. THEY'RE EVERYWHERE!
I'm in the midst of the slow process to move my checking account because Bank of America bought my bank. I figger I'll head out before they bring in their famous messing with YOUR money, customer prevention and fees.
I'm so subtle, too. I had a teller ask me if I wanted to apply for the BOA credit card. I said, "I don't want Bank of America anything."
So now they own my mortgage company. I guess at least there I have a contract and they don't have a lot of room to make changes.
If I were refinancing I wouldn't even give BOA a shot. I'll bet there's gonna be chaos and worse for quite a while for Countrywide employees and borrowers.
BTW, I'm going to Barry's bank. They don't really have as many locations near me, but who needs locations? (He says, knowing he might regret that.) When the new bank asked why I was moving, I told them.
It is to me. They're EVERYWHERE. THEY'RE EVERYWHERE!
I'm in the midst of the slow process to move my checking account because Bank of America bought my bank. I figger I'll head out before they bring in their famous messing with YOUR money, customer prevention and fees.
I'm so subtle, too. I had a teller ask me if I wanted to apply for the BOA credit card. I said, "I don't want Bank of America anything."
So now they own my mortgage company. I guess at least there I have a contract and they don't have a lot of room to make changes.
If I were refinancing I wouldn't even give BOA a shot. I'll bet there's gonna be chaos and worse for quite a while for Countrywide employees and borrowers.
BTW, I'm going to Barry's bank. They don't really have as many locations near me, but who needs locations? (He says, knowing he might regret that.) When the new bank asked why I was moving, I told them.
Re: The mortgage mess
I feel sory for poeple who barely pulled into a starter home by getting an adjustable rate. I have no sympathy for those who bought way too much house because the monthly payments were low for now and real estate only goes up.
I just heard that a lot of the house flippers simply lie and say that they're going to live in the house. Let them get what they deserve.
The problem is that we expect Washington to swing into action and bail out the stoopids with our tax dollars.
They said the test was, "Can you fog a mirror?"
I feel sory for poeple who barely pulled into a starter home by getting an adjustable rate. I have no sympathy for those who bought way too much house because the monthly payments were low for now and real estate only goes up.
I just heard that a lot of the house flippers simply lie and say that they're going to live in the house. Let them get what they deserve.
The problem is that we expect Washington to swing into action and bail out the stoopids with our tax dollars.
Greebo
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Retired Evil Overlord
Two lenders I never want to deal with (in BoA's case, again, after they bought out MBNA).
I like smaller banks. Too bad they're getting eaten up like small fish these days...
I like smaller banks. Too bad they're getting eaten up like small fish these days...
bstratt
Cleared for Takeoff
Re: The mortgage mess
A lot of banks, us included, were caught with a mixture of mortgages being held in warehouse lines. Thankfully we were only bit players and it won't really impact on our financials but there are other smaller banks out there with HUGE exposures - some of the more public info involves Nat City and WaMu.
A lot of banks, us included, were caught with a mixture of mortgages being held in warehouse lines. Thankfully we were only bit players and it won't really impact on our financials but there are other smaller banks out there with HUGE exposures - some of the more public info involves Nat City and WaMu.
bstratt
Cleared for Takeoff
The REALLY stupid deals aren't the sub-prime's but the option ARM's, and they don't hit peak repricing maturities until next month and they run at that level for a year before starting to drop off.
Ken Ibold
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Hm, I have 8 accounts at BoA (only one is a loan) and I'm pretty happy with them.
Ken Ibold
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OK, so the upshot is don't use their credit cards and don't sell stuff on Craigslist.
I still have 8 accounts and I'm still pretty happy with them. Excellent online banking system. Decent though not stellar moneymarket rates. Convenient locations.
I'm sure it's only because I'm an Advantage Account holder!
kevin47881
Final Approach
OK, so the upshot is don't use their credit cards and don't sell stuff on Craigslist.
I still have 8 accounts and I'm still pretty happy with them. Excellent online banking system. Decent though not stellar moneymarket rates. Convenient locations.
I'm sure it's only because I'm an Advantage Account holder!
I'm with you Ken. We haven't had the slightest problem with them. However, we don't have any loans or cc with them either.
Greebo
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Retired Evil Overlord
I had an MBNA card that became a BOA card. I don't have that card anymore. They seem to like playing games with due dates and changing them w/o warning so that people with automatic payments get hit with late fees.
This is what I've heard from friends of mine who've been bitten directly so...
This is what I've heard from friends of mine who've been bitten directly so...
OK, so the upshot is don't use their credit cards and don't sell stuff on Craigslist.
I still have 8 accounts and I'm still pretty happy with them. Excellent online banking system. Decent though not stellar moneymarket rates. Convenient locations.
I'm sure it's only because I'm an Advantage Account holder!
To be fair, my bank also told me upfront, as I deposited it, there would be a hold on a large check I deposited. I think it was 5 days.
I guess there's no way in the baking system to actually positively verify that funds have been transfered, which these Nigerians take advantage of with the phony cashier's checks. There's only the notification that the check bounced. You would think that it would be possible with domestic transactions to verify that a check is good, done, paid. I thought they can have funds held at the paying bank with a phone call.
Ken Ibold
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Never had a hold of even a single day on any deposit at BoA, and I have deposited dozens of 10K+ checks and even a few over 40K.
YMMV, I guess.
I guess I can't help but think that a lot of the problems people foist on banks are simply the result of the complainer mismanaging their own funds. Not necessarily putting you in that category, but that point you quoted about a 15 day hold, heck, if the guy had bounced 8 checks the week before and was always barely skirting by on the account balance, I sort of feel the bank's position is justified. But in the anonymous blogs, you can't know, can you? Are there a lot of complaints? Who's to judge? If you have a lot of customers, you're going to get more complaints than if you have few customers.
JohnR
Final Approach
I'm impressed. I can't seem to make even a modest deposit, in person, without being treated like a suspect. When we had BOA they did it, and with our credit union they do it.
Skip Miller
Final Approach
It is nice to deal with a bank that trusts you. I bank with the USAA Federal Savings Bank in Texas. They reimburse you for non-USAA bank ATM fees up to $10/month, and give you free postage envelopes for deposits. Can't wait for your money? You can scan in your deposits (up to $5g a day) and the funds are available instantly.
-Skip
Dean
Pattern Altitude
Capital one is just as bad, they change my due date about every three months and they change the payment center it goes to. I started out going to St.Louis, then they moved it to California. Instead of mailing it out 7 days before payment was do, I had to send it 10-12 days before or it would be a day or two late.
JohnR
Final Approach
I might look into that. We have USAA insurance. Not having a local branch is less and less important I guess.
bstratt
Cleared for Takeoff
The issue of holding funds is so the bank doesn't get stuck with a returned check and the resultant loss.
If you have "cleared fund" deposits with the bank which currently exceed the balance on the check being deposited, they will often free those funds up right away. If you are "known" to the bank as a very reputable, high earner, they may waive the hold in the opinion that if this check bounced you could get money from a different source. It really keys on how big a gamble the bank wants to make that if the check is returned they could get the money elsewhere.
If they decide a hold is necessary, the number of days depends on which Fed clearing house the banks are in, or if it is foreign. If I deposited a check drawn on another major Chicago bank into my account here, the max hold may be 48 hrs. On the other hand if I deposit a check drawn on an English bank, they'll hold funds 15-30 days.
In Canada, where there are only 5 major banks and the clearing system is extremely efficient, maximum hold on any bank check is 24 hours. Credit Unions, etc., may be longer. Checks drawn on a US Bank are often held for 30 days.
If you have "cleared fund" deposits with the bank which currently exceed the balance on the check being deposited, they will often free those funds up right away. If you are "known" to the bank as a very reputable, high earner, they may waive the hold in the opinion that if this check bounced you could get money from a different source. It really keys on how big a gamble the bank wants to make that if the check is returned they could get the money elsewhere.
If they decide a hold is necessary, the number of days depends on which Fed clearing house the banks are in, or if it is foreign. If I deposited a check drawn on another major Chicago bank into my account here, the max hold may be 48 hrs. On the other hand if I deposit a check drawn on an English bank, they'll hold funds 15-30 days.
In Canada, where there are only 5 major banks and the clearing system is extremely efficient, maximum hold on any bank check is 24 hours. Credit Unions, etc., may be longer. Checks drawn on a US Bank are often held for 30 days.
Greebo
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Retired Evil Overlord
Hey Barry, since you know something about the industry...
I'm looking at buying some rental properties. To help ensure prompt rent payment, I want to offer my tenants an option to have their rent pulled automatically on the 1st of the month, and give them a discount for agreeing to this.
The question is - how hard would it be for me to do this while using a small, regional bank for my commercial account? Is this something pretty much any bank should be able to accommodate?
I'm looking at buying some rental properties. To help ensure prompt rent payment, I want to offer my tenants an option to have their rent pulled automatically on the 1st of the month, and give them a discount for agreeing to this.
The question is - how hard would it be for me to do this while using a small, regional bank for my commercial account? Is this something pretty much any bank should be able to accommodate?
t0r0nad0
Pattern Altitude
Chuck - I'm not a banking expert, but I have worked with a lot of small businesses over the past couple of years...
YOu should be able to get an ACH process set up at just about any bank these days, though usually it requires a commercial banking account. I work with health clubs and gyms, many of them are small companies, but nearly all of them offer their members the option to pay via ACH draft. It works out to be a cheaper processing fee than accepting credit cards.
YOu should be able to get an ACH process set up at just about any bank these days, though usually it requires a commercial banking account. I work with health clubs and gyms, many of them are small companies, but nearly all of them offer their members the option to pay via ACH draft. It works out to be a cheaper processing fee than accepting credit cards.
Ken Ibold
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I love USAA insurance. Unfortunately they just non-renewed our vacation condo because they will no longer allow one policyholder to be insured for two dwellings in Florida. First hiccup ever from them.
Greebo
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Retired Evil Overlord
I'll have to ask when I set up the account. I'm waiting on my papers of origination before I can do that.
Thanks.
bstratt
Cleared for Takeoff
I'm pretty sure its not that difficult but I've never been involved with setting it up (only shutting it down
)! ACH debits can be processed through any bank but there will be a charge, its not free.
K
KennyFlys
Guest
I dumped BoA checking, savings and both credit cards. One card was formerly with MBNA, of course. I had the other only as an LOC for checking.
When I closed it, I did the whole thing via ATM. I moved the savings over then withdrew from checking down to the last dollar... leaving a balance of four cents. For the last four months, I've been getting statements for that four cents.
Now, I'm happily with a small regional chain that seems pretty content with not expanding so fast they lose touch with people. The neat thing... I can call on the phone and get a live body immediately! Try that with BoA!
When I renewed with AOPA, I told them I dropped the credit card and why. I also said there are a number of other pilots who don't care for BoA and have dropped their cards and that it would do them well to look at other options to establish a decent program with. She said there's a contract carried over from MBNA with three years remaining. It seems they are more concerned with what money they get out of BoA than members who would hold on to and use a card that does benefit AOPA.
When I closed it, I did the whole thing via ATM. I moved the savings over then withdrew from checking down to the last dollar... leaving a balance of four cents. For the last four months, I've been getting statements for that four cents.
Now, I'm happily with a small regional chain that seems pretty content with not expanding so fast they lose touch with people. The neat thing... I can call on the phone and get a live body immediately! Try that with BoA!
When I renewed with AOPA, I told them I dropped the credit card and why. I also said there are a number of other pilots who don't care for BoA and have dropped their cards and that it would do them well to look at other options to establish a decent program with. She said there's a contract carried over from MBNA with three years remaining. It seems they are more concerned with what money they get out of BoA than members who would hold on to and use a card that does benefit AOPA.
flyingcheesehead
Touchdown! Greaser!
Oh, how I love my credit union!
What a difference .org makes over .com! I have several deposit/security/loan accounts to meet various needs, the web site is superb and full-featured, I get interest on my checking as well as savings, good rates on CD's and loans, no minimum balances, I get real people when I call...
... and there's not a single fee in sight!
What a difference .org makes over .com! I have several deposit/security/loan accounts to meet various needs, the web site is superb and full-featured, I get interest on my checking as well as savings, good rates on CD's and loans, no minimum balances, I get real people when I call...
... and there's not a single fee in sight!
I wonder if like us he gets rated at "Meets expectations."