Mark's weekly blogging

Hello everyone!  It seems that the funding firm of DEWEY, CHEATHAM & HOWE is back in business again.  We are getting an increasing number of deals from borrowers and/or realtors are telling us should be able to get funded.  These deals have, in most cases, been reviewed by another firm (a short email in most cases without a lot of pertinent data) and had an LOI issued to the borrower.  Our firm is contacted somewhere in this mix and given the same minimal amount of data to work from.  At this point, we request more data and do not issue any sort of documentation because we have nothing to base a valid assessment on.  The next thing we hear is that people have given substantial monies, and NON-REFUNDABLE, for this LOI that was issued without sufficient data.  The funny thing is - no one that we talk to ever understands how this could possibly happen. hmm...

DOES THIS STORY SOUND FAMILIAR TO ANYONE?

The fact of the matter is - use some common sense when looking at any of your financing requests!  As commercial and business underwriters, we do not want to have to worry about running a business when someone else fails.  This means that the underwriting requirements for everyone are grounded in the same basis of thinking.  The moral of the story is...if your client has poor credit, no money, or no business experience in the field he or she is trying to borrow money for - they will not get funded in today's market.

The lending markets are controlled by Wall Street (secondary Market) not the banks and not your local mortgage company.  The fact of the matter is they are not taking questionable paper for the time being.  If you do not believe this and live in some fantasy world where someone will fund garbage deals in today's environment - then you and your client will find one group
(and one group only) to work with you and they are the funding firm of DEWEY, CHEATHAM & HOWE.

Mark