In three decades of doing loans, I have mostly done what is known as “A” paper loans. Before there was QM and non-QM, loans came in a letter grade. I always try to put my people in the best possible loans i.e. “A” paper, even if it requires that they clean up their credit some. Sometimes the situation calls for measures outside the box.
So it was one November years ago that a previous client who is was a counselor, referred one of his clients to us. He had determined that she was depressed and unlike some forms of depression, felt that a visit to us might be able to remedy the situation. Upon reviewing her file, it was clear that she was caught in that middle age crisis where life had thrown her a lot, like life does. Her husband wasn’t working and her teenager was a challenge. I will call her Louise. Louise was an engineer for a local high tech firm and made a good living. She only owed a small balance on her home, but it, like many other things in her life needed repairs. My heart went out to them when after coming in for their appointment, the working one of their four cars that they chose to drive in to see us wouldn’t start and they had to push it out of the parking lot.
We went through the drill of reviewing the file with our favorite lenders who all said, “no thank-you”. We moved it to the lender that had B through D paper. Our Account rep came by and he shook his head looking at the credit. Then when the property appraisal came in that was even messier! Not only did they need a new roof, there were safety hazards like a rotten deck with no stairs or rail – just a drop off! It was one of those nightmare kind of deals. Borrowers with no funds to fix and no loan without a fix. After a lot of finagling and repair bids, we got the lender to agree to a deal that solved all of the problems. However, when I got the final approval, it was D paper and the rate was about 3 points higher than typical market rates. I dreaded making that call, in fact I dreaded everything about that file after awhile because nothing about it was happy.
Just the same, I picked up the phone and called Louise to tell her what would need to happen, what the terms would be and that the good news was that she would sign just before Christmas. Louise began to cry. She said that this was the best Christmas present she could have gotten. My heart was touched. In my own need to make things go by my version of perfect, I had totally missed the point of what the importance of the “bandaid” loan was for her. Really, she is the one that gave me the gift, teaching my then very young self what it meant to use my work to come alongside someone and help them in a way that was most meaningful to them – not in my pristine idealistic mentality.
That has become part of my work philosophy – I want to help my clients get financing that makes the most sense for them in a way that is most meaningful to meet their goals and their situation, whatever that is. When others succeed, I feel successful. Always willing to talk through scenarios, goals and plans and provide as many options as I can come up with.
Have helped buyers of all types and financial levels and worked on 1000's of loans.
There is always something new!
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