Is First Magnus Sinking…Drowning in a Sea of Agressive Underwriting?
On the “What’s Up with First Magnus” forum topic, secret insiders comment on “How to Torpedo Your Mortgage Company in 15 Easy Steps” and suspect
that “First magnus is about somewhere between steps 7 and 8! Every single one of steps 1 through 6 DESCRIBE First Magnus to a T…”
What I found most interesting is that for First Magnus to be at step 7 and 8, means that they have passed Step 4:
4. Advertise aggressive underwriting. Push underwriters to process more files. Accept “alternative” documentation. Don’t verify anything. Do lots of stated/stated or no documentation loans. Become the leader in those type of loans. Do a lot of “niche” products that no one else has. Become known for “getting the hard files done”. Teach your sales people how to work around underwriting guidelines. Pressure underwriting, compliance and legal to stay out of the way.
…And First Magnus also glided past Step 6:
6. Load up on a bunch of crap loans.Fund a ton of stated/stated loans, 100% LTV loans, investment property loans, condominiums, alt-a and sub-prime loans. Fund away - you’ve got plenty of bidders and buyers. Load up your warehouse lines, use up your credit. They’ll be more - your warehouse bank account rep promises to give you a temporary line increase if you need it.
So as First Magnus ‘funded away’ gleefully raking in the $$$, all of sudden when the tide turned and the tsunami’s of foreclosures are coming in … they now look for scapegoats and target us, Maria Gudelis and Rudy Straat, to take attention away from their loose lending policies.
More will be posted on our new blog, FirstMagnusNews.com (oh and by the way, we also have FirstMagnusSucks.com but thought we should not resort to the same tactics as First Magnus just yet and keep all News from us above board and factual). However we will consider opening up FirstMagnusSucks.com as a Wiki to other people that have been damaged by First Magnus. Why, because we are not the only ones hurt by their tactics, see an example of someone else who fought back at First Magnus finding First Magnus liable for RESPA illegal kickbacks…and won!
Filed under: Miscellaneous
