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Old 02-04-2008, 03:07 PM   #21
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So, UNSECURED credit is easier to get than SECURED credit..........how ironic........
great point... I said that to them directly.

I said "you will give me a loan with a signature but you wont let me put up my house as collateral" and .... "Have you lost your minds"

It was after this conversation that the manager called me and I directly proceeded to vent on them..

Im actually pretty torqued...

I have a 20 year realtionship with this bank and never been any kind of trouble...now I ask for something they have been sending me advertising stuff in the mail for years to try to get me to do. When I actually apply I get told no...

like I said, Im astounded, this messes with my world view. I had always thought with a good credit rating built over decades you got good treatment.

Not the case.
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Old 02-04-2008, 03:14 PM   #22
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great point... I said that to them directly.

I said "you will give me a loan with a signature but you wont let me put up my house as collateral" and .... "Have you lost your minds"

It was after this conversation that the manager called me and I directly proceeded to vent on them..

Im actually pretty torqued...

I have a 20 year realtionship with this bank and never been any kind of trouble...now I ask for something they have been sending me advertising stuff in the mail for years to try to get me to do. When I actually apply I get told no...

like I said, Im astounded, this messes with my world view. I had always thought with a good credit rating built over decades you got good treatment.

Not the case.
Sorry to hear that Buku.... How about taking the opposite approach? If they are saying no to you, you should at least be told why that is. If they say no to you with your credit rating, I would ask them to explain to me what I would need for them to say yes.
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Old 02-04-2008, 03:25 PM   #23
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Sorry to hear that Buku.... How about taking the opposite approach? If they are saying no to you, you should at least be told why that is. If they say no to you with your credit rating, I would ask them to explain to me what I would need for them to say yes.
Have you ever tried that yourself? Because, I have years ago, and the silence was deafening.........
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Old 02-04-2008, 03:46 PM   #24
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Sorry to hear that Buku.... How about taking the opposite approach? If they are saying no to you, you should at least be told why that is. If they say no to you with your credit rating, I would ask them to explain to me what I would need for them to say yes.
The bank probably has a maximum LTV ratio. Buku has $70k equity in a $520k property, which is an 87% LTV.

In Texas, a HELOC requires a maximum 80% (inclusive of the HELOC).


Edit: wording was poor (and still is but better)
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Old 02-04-2008, 05:03 PM   #25
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I'll second what eridanus said. 13% equity just won't do it these days regardless of your credit score.
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Old 02-04-2008, 06:59 PM   #26
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Buku,

Maybe you need to forget USAA and their game playing and give your business to someone who really wants it. Have you tried Ditech, E-Trade Financial or Wells Fargo as they all claim to offer 100% home equity loans? I've used Ditech before for a home refinance. The loan officer actually came to our home for us to sign the loan docs. I, however, don't have experience with Wells Fargo or E-Trade Financial.


https://financial.wellsfargo.com/loa...ocode=FKG03593

Smart Home Equity Solutions From Ditech: Put your home equity to work

https://us.etrade.com/e/t/mortgagesh...homeequityloan
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Old 02-04-2008, 09:03 PM   #27
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Buku,

Maybe you need to forget USAA and their game playing and give your business to someone who really wants it. Have you tried Ditech, E-Trade Financial or Wells Fargo as they all claim to offer 100% home equity loans? I've used Ditech before for a home refinance. The loan officer actually came to our home for us to sign the loan docs. I, however, don't have experience with Wells Fargo or E-Trade Financial.


https://financial.wellsfargo.com/loa...ocode=FKG03593

Smart Home Equity Solutions From Ditech: Put your home equity to work

https://us.etrade.com/e/t/mortgagesh...homeequityloan
I tried wells fargo. The problem with them is I only want 20k which is below some kind of minimum step in the loan amount. To get the loan id have to sign up for a pretty high interest rate and early repayment fees. ...no reason not to use credit cards.

yes LTV is the problem with my HE loan. Kind of funny though, not enough to be worth their time, but too much for the risk.

Ill say it again, they "have lost their minds"
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Old 02-04-2008, 10:48 PM   #28
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What's your income? I have just done a few loans through USAA at 90% LTV no problems, but with documented high income.

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Originally Posted by Buku View Post
I approached USAA about a $20k home equity loan to complete the finishing of my basement. Instead of financing on my creditcards, ill do a tax deductable HE loan. I have been doing one thing at a time (Like plumbing, or electrical) then saving a little and doing some more etc. Decided to juts finish it off because I am tired of fooling with it.

Some background:
I put down 120k on a 570k purchase in 2005.
My credit score they used for risk assesment was a 758. (I never have problems).
Home equity loan…declined due to insfufficient equity in my house.
I called USAA and demanded to speak to a manager and talked about my 20 year relationship with them, my never having been late on a single mortgage payment in the 5 houses I have bought through them over the years. Yada yada.
Nothing.
My house is listed in a declining market and the appraisal they did was 520K. (Still giving me 70k in equity)….

They wouldn’t give me the loan. things are different now.
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Old 02-05-2008, 03:15 AM   #29
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I heard an interesting thing today on NPR's marketplace show. Citigroup had told 160,000 out of 2 million credit card customers of a bank that had bought in the United Kingdom, that they were no longer able to make additional charges on their credit cards. Basically they were cutting them off, these weren't necessarily people that were deliquent on their accounts but rather people who's their credit score was too low and they didn't generate enough money in fees.
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Old 02-05-2008, 10:12 AM   #30
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I got a letter from Capital One today, with the headling:

"What have we done wrong, or (gasp) what HAVEN'T we done Right"

They want me to call them to get me in the "right card" ......

Obviously, they need money. Too bad I don't use credit cards...........
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Old 02-05-2008, 10:33 AM   #31
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Consumer currently accounts for 70% of GNP, up from 63% in 1980. Much of this increase can be attributed to the easy credit that we've enjoyed over the past few decades in the form of credit card spending and people using their home equity as a checking account.

In just the last four years, 34,000,000 households have taken money out of their homes --which amounts to 1/3 of homeowners spending the precious equity they've accumulated. This means they're borrowing heavily "to finance their day-to-day lives.

It's now time to pay the piper as lending institution across the U.S. are tightening up on credit standard both in secured home loans and unsecured credit cards. Because of the evaporation of easy credit, consumers are now heading to Wal-Mart instead of Nordstroms. Conspicuous consumption is giving way to trying to making one's dollar go the furthest.

Credit counselors report that they are receiving desperate calls from not only people of modest means, but also people who earn six-figure incomes. These high wage earners are disillusioned as they don't know how to exist without easy credit. They've maxed out both their credit cards and mortgaged their home to the hilt, and they don't know what else to do now that they can no longer shop until they drop.

Extravagance in consumer spending has resulted in people placing less money in savings. In 1984, American saved 10% in what they earned. Ten year later, it was down to 5% and today the savings rate is negative.

Americans now must do something they haven't done in recent years: live within their means. This is due to the high number of jobs being lost, rapidly falling housing prices, and financial institutions cutting off life support to easy credit. Since people are now being challenged to live within their means, many are also realizing that they need to increase what they save and put in the bank--something they haven't done for a long, long time. According to Chief Economist for Lehman Brothers, Ethan S. Harris, "The long collapse in the United States saving rate is over... People are going to start saving the old-fashioned way, rather then letting the stock market and rising home values do it for them."

Two realities have now merged into one: 1) The savings rate in the U.S. is now increasing instead of decreasing as it did the past 30-plus years. 2) Easy credit is quickly vanishing from the American landscape.

The problem is this, consumer spending is the main driver of our economy. With a society that will now be socking away more money into the bank and actually planning for the future and using far less credit; there will be less spending which is the primary component of economic growth.

In coming months, we will be in for a shock as the free-wheel spending and easy credit that allowed even Americans of modest means to occupy McMansions and drive expensive gas-guzzling SUVs comes to a crashing halt. Folks, the party is over.

http://www.nytimes.com/2008/02/05/bu...ef=todayspaper
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Old 02-05-2008, 11:35 AM   #32
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Wow.
This paints a different side of the realities of the changing economy. I can understand putting the screws on someone with a shaky credit report, but I would have thought that you would be a sure bet.

Wow.
I wonder what the person's debt/income ratio was.

We're in the process of refinancing (to join our primary & secondary into one). 15 year @ 4.625%. My credit score is in the mid 650s, and wife's is in the mid 700s. Mine is so low because of an investment property we are working on to rehab/resell. There was no problem with them giving us the loan. Our debt/income ratio is around 54% (but that includes the investment property that is 100% financed).
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Old 02-05-2008, 11:47 AM   #33
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I approached USAA about a $20k home equity loan to complete the finishing of my basement. Instead of financing on my creditcards, ill do a tax deductable HE loan. I have been doing one thing at a time (Like plumbing, or electrical) then saving a little and doing some more etc. Decided to juts finish it off because I am tired of fooling with it.

Some background:
I put down 120k on a 570k purchase in 2005.
My credit score they used for risk assesment was a 758. (I never have problems).
Home equity loan…declined due to insfufficient equity in my house.
I called USAA and demanded to speak to a manager and talked about my 20 year relationship with them, my never having been late on a single mortgage payment in the 5 houses I have bought through them over the years. Yada yada.
Nothing.
My house is listed in a declining market and the appraisal they did was 520K. (Still giving me 70k in equity)….

They wouldn’t give me the loan. things are different now.
Curious question. What's your Debt/Income ratio?

And also if you think about it, they're covering themselves from more possible losses. After all, the house lost 8.7% in 2 years. What if it looses 8.7% in another 2 years? Then, your LTV is around about 95%. That's pretty risky I would say.
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Old 02-05-2008, 01:19 PM   #34
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Originally Posted by Retire Soon View Post
Consumer currently accounts for 70% of GNP, up from 63% in 1980. Much of this increase can be attributed to the easy credit that we've enjoyed over the past few decades in the form of credit card spending and people using their home equity as a checking account.

In just the last four years, 34,000,000 households have taken money out of their homes --which amounts to 1/3 of homeowners spending the precious equity they've accumulated. This means they're borrowing heavily "to finance their day-to-day lives.

It's now time to pay the piper as lending institution across the U.S. are tightening up on credit standard both in secured home loans and unsecured credit cards. Because of the evaporation of easy credit, consumers are now heading to Wal-Mart instead of Nordstroms. Conspicuous consumption is giving way to trying to making one's dollar go the furthest.

Credit counselors report that they are receiving desperate calls from not only people of modest means, but also people who earn six-figure incomes. These high wage earners are disillusioned as they don't know how to exist without easy credit. They've maxed out both their credit cards and mortgaged their home to the hilt, and they don't know what else to do now that they can no longer shop until they drop.

Extravagance in consumer spending has resulted in people placing less money in savings. In 1984, American saved 10% in what they earned. Ten year later, it was down to 5% and today the savings rate is negative.

Americans now must do something they haven't done in recent years: live within their means. This is due to the high number of jobs being lost, rapidly falling housing prices, and financial institutions cutting off life support to easy credit. Since people are now being challenged to live within their means, many are also realizing that they need to increase what they save and put in the bank--something they haven't done for a long, long time. According to Chief Economist for Lehman Brothers, Ethan S. Harris, "The long collapse in the United States saving rate is over... People are going to start saving the old-fashioned way, rather then letting the stock market and rising home values do it for them."

Two realities have now merged into one: 1) The savings rate in the U.S. is now increasing instead of decreasing as it did the past 30-plus years. 2) Easy credit is quickly vanishing from the American landscape.

The problem is this, consumer spending is the main driver of our economy. With a society that will now be socking away more money into the bank and actually planning for the future and using far less credit; there will be less spending which is the primary component of economic growth.

In coming months, we will be in for a shock as the free-wheel spending and easy credit that allowed even Americans of modest means to occupy McMansions and drive expensive gas-guzzling SUVs comes to a crashing halt. Folks, the party is over.
I think your collections career has made you permanently cynical........... Just kidding....... I agree the pendelum is swinging back slightly, but it seems to me the govt is still counting on Americans spending themselves into oblivion.

If instead of giving Joe Citizen the $150 billion, we could pay down the national debt by $150 billion.......
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Old 02-05-2008, 03:08 PM   #35
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If instead of giving Joe Citizen the $150 billion, we could pay down the national debt by $150 billion.......
ROFLMAO pay off national debt in an election year:confused: What a crazy idea, I've been looking forward to being $10 trillion dollars in the hole for a decade, we are almost there. A war, a bunch of pork, and an economic stimulus package should push us over the top. $10 trillion first country to reach that milestone, USA USA USA we are #1


FinanceDude some free advice go into comedy, stay out of politics.
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Old 02-05-2008, 04:57 PM   #36
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FinanceDude some free advice go into comedy, stay out of politics.
I thought politics was comedy, albeit a Greek tragedy or something........

I can hear the joke in the Senate chambers: "What's $10 trillion among friends"...........
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Old 02-05-2008, 04:58 PM   #37
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I'll second what eridanus said. 13% equity just won't do it these days regardless of your credit score.
If that is truly the case, there WILL be no refinance business. 80% LTV is "SO 1980"!!!
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Old 02-05-2008, 08:30 PM   #38
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According to Chief Economist for Lehman Brothers, Ethan S. Harris, "The long collapse in the United States saving rate is over... People are going to start saving the old-fashioned way, rather then letting the stock market and rising home values do it for them."
This quote misses the point: there is/was nothing wrong with "saving" via home equity or the stock market. Using that equity, and then some, to fuel consumption is not really "saving"...
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Old 02-05-2008, 08:32 PM   #39
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Saw two new trends in online financial stories today.

#1 401k Debit Cards - a debit card tied to your 401k balance, so people can access their 401k for a loan with the convenience of a card

#2 Advice column on 8 ways to cut back in US News (picked up all over the net) has the number six way budget experts recommended: spend your savings.

With these kinds of financial discipline, no wonder all the equity got spent.
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Old 02-05-2008, 09:07 PM   #40
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Saw two new trends in online financial stories today.

#1 401k Debit Cards - a debit card tied to your 401k balance, so people can access their 401k for a loan with the convenience of a card

#2 Advice column on 8 ways to cut back in US News (picked up all over the net) has the number six way budget experts recommended: spend your savings.

With these kinds of financial discipline, no wonder all the equity got spent.
#1 is why I would bet on people finding even more creative and risky ways to keep the party going.
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