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[Fee Simplistic] Mortgage Lending Gluttony Really Is The First Deadly Sin

Fee Simplistic is a regular post by Martin Tessler, whom after 30 years of commercial fee appraiser-related experience, gets to the bottom of real issues by seeing the both the trees and the forest. He has never been accused of being a man of few words and his commentary can’t be inspired on a specific day of the week. In this post, after noshing, drinking and dancing in the conga line during the holidays with mortgage lenders, Marty observes what appears to be a series of quick fixes for looming foreclosure problems. “ …Jonathan Miller

A recent article in the Wall Street Journal described how lenders are dealing with mounting mortgage delinquencies through the latest plug-the -dike quick fix tools created to cope with the easy credit and underwriting gluttony of the past few years. This parallels the diet industry’s post-holiday marketing blitz where all of that rich holiday noshing and drinking has added inches and pounds that are conjuring images of the saftig pre-diet Kirsti Alley.

The latest “crash diets” that the lenders have come up with are:

Of particular interest was a story of a borrower caught in the vise of trying to sell a house in Las Vegas where the market tanked after he bought a new house following a job transfer to Dallas. The man’s dilemma stemmed from his expected sale at $475,000 and the buyer’s bank appraisal of $419,000 compared to his present loan balance of $440,000. Now I have been around this business long enough to sniff out aberrations when I smell them so here it comes.

And so, Dr. Phil, here is my dilemma: