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GOVERNMENT BACKED MORTGAGES - A THOUGHT

If one were to go back in time and review the sequence of events that not only caused the Federal Deposit Insurance Corporation and the Federal Savings & Loan Insurance Corporation to be formed and then what happened thereafter, it might be eye-opening.

But you'd have to consider the various bank and savings and loan association problems that caused it to evolve to what it is today.

Nevertheless, from almost the beginning, for a financial institution to be a member of the appropriate insurer, the institution had to be a member and pay dues based on its risk to the insurer.

If you owned a member bank that made lousy loans, you paid more in premium percentage than did the conservative bank of the same size.

So in essence what this meant was to be able to borrow Fed funds and insure the accounts of clients, each bank had to participate in the losses of the whole.

Perhaps the lack of membership by mortgage brokers in the federal backed loans they broker is the fly in the ointment. Perhaps mortgage brokers should be required to be members of an insurance corporation that guaranteed mortgage lending losses.

And perhaps that premium would be calculated and assessed on the default ratio of the mortgage broker.

After all, it's not very smart to allow mortgage brokers to generate income for themselves all the while knowing that they will not be held financially responsible for the loans they made that turn out to be burdens.




Copyright 2008 - William S. Cherry

All Rights Reserved
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THE PROS AND CONS OF REVERSE MORTGAGES

Reverse mortgages have been around for a number of years, but only recently have they been legal to market in Texas.
 
Basically, the idea is that senior citizens needing more cash and income than they have, can borrow a substantial portion of the cash equity from their home, and they can then live in their home without making a mortgage payment for the remainder of their lives. 
 
I have been in the real estate business for the majority of my life.  And I have also been an officer and director of three banks.  On top of that, my graduate education is in real estate, banking and life insurance.  Combining all of that into a big pile, one would probably think I would be licensed to sell reverse mortgages.  I'm not and I don't plan to be.
 
Thus far, everyone who has spoken with me about reverse mortgages, at least in my mind, has been a poor candidate for that product.  Reverse mortgages are not cheap, and they are predicated on what the future holds for the borrowers.  In most cases, seniors have no business going into the waters of the mysterious.
 
If you would like to have an easy to understand four-page piece that explains Reverse Mortgages in a question and answer format, I have written one and I'll be glad to send you a copy.  You may email cherrysells@aol.com or you can order it toll free by calling 1-800-314-7110 and leaving your name, mailing address and email address.  You can be assurred that you will not be called.
 
Should you then decide that a reverse mortgage is a proper product for you or a friend or family member, I'll be glad to put you in contact with a specialist who is honorable and above board. 
 
BILL CHERRY, REALTORS
DALLAS
1-800-314-7110
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SOME HOTELS HAVE BECOME DEADBEATS

           BILL CHERRY
 
I want to tell you of two recent and interesting experiences.

While in "real life" I am a Realtor, for years I have also tuned pianos. Why? Because I have always loved pianos. And I've played side gigs for more than 40 years. Why? Because I love pianos.

Now the way you find me is from a referral from one of your friends or from my piano tuner web site wee.billcherrypianotuner.com

And the web site makes clear what the price is, that I only take cash or check, and that there is no credit for anyone. Period.

And when people call to schedule my services, I tell them the price and that I must be paid by cash or check at the time of the tuning. No credit cards, no accounts payable.

Individuals understand this. And until recently, hotels did as well.

However,during the past two months both a Marriott brand and a Hilton's Doubletree in Dallas called at the last minute begging that I come quickly and tune the hotel's piano...they had a function that required the instrument be in tune.

I rearranged my schedule each time and tuned the pianos. And that's when the person who hired me told me that it was against the hotel's policy to pay at the time of service.

I would have to turn in my invoice and a 1099 and wait for a few days before the check would be sent to me. Nevermind that wasn't our deal!

"You knew the deal. You chose to deceive me"

And then I said, "You know if I brought six people in for dinner in your dining room, and when the waiter brought the bill, I told him I'd send my personal check in a few days, you would call security, wouldn't you?

"And that would be because I had no credit arrangements with you.

"Now you made no credit arrangements with me, yet I'm supposed to play by your rules because you are a national hotel chain."

So how did things come out? The Marriott took more than a month to pay me. The Hilton Doubletree near NorthPark still hasn't.
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