Why Banks Charge you More

April 5th, 2008 7:35 PM by Andrew Walter May CEO

Countrywide - $28,000,000,000 loan; Bear Sterns - Bankrupt; CitiBank - $25,000,000,000 in quarterly losses. Wait until Wachovia and Wamu start announcing those wonderful $500,000,000,000 in negatively amortizing loans.

What's a client to do? Stay away from retail banks. They have over 100,000 branches that they need you to pay for.

The Federal Government bailed out Bear Sterns by guaranteeing the losses, when JPMorgan announced they were purchasing Bear for $2. Actually, it was $2 a share (down from $150 a share 6 months earlier). How'd you like a 401k at Bear! One employee wittled the 401k from over $1 million to $12k. OUCH!

So, why do we tell you this. Because it's all about trust at ADR. We make sure you are happy. Banks are notorious for changing terms on you. We still have yet to receive a better business bureau complaint, in nearly 3 years of operations.

Select a professional when you get your mortgage. One that isn't simply 18 years old (that is the only requirement to sell mortgages if you work at a bank). One that isn't living in a foreign country - cold calling you every 15 minutes (we don't have a call center that bothers you).

Our volumes were up 200% in 2007 over 2006. That's pretty good given the environment we were in. In 2008 our volume is up 20% for the first 3 months of the year, over 2007's first three months.

Call Andy May at 919 771 3379 if you are experiencing any issues with working with ADR. We'll help you through it. Take care and thank you for considering


Posted in:General
Posted by Andrew Walter May CEO on April 5th, 2008 7:35 PM

Andy, What do you think of the US Treasury Department's Blueprint for a Modernized Financial Regulatory Structure? it would expand the Fed's abilility to lend money to and regulate investment banks, eliminate the thrift charter and force conversion to federal bank charter status, and create a new Mortgage Origination Commission (MOC) to evaluate, rate and report on the adequacy of each state's system for licensing and regulating mortgage originators, among other things. Do you think its good or bad for the mortgage industry in general and mortgage originators specifically? Thanks! Craig
Posted by Craig Focardi on April 9th, 2008 11:04 PM

Always good to hear from you Craig. I think anything that simplifies the maze of regulatory structures is good for the country. Right now the Office of Failed Supervision (aka: OTS) is again at the center of all these bank failures. The OTS allows banks to run wild without the same regulations that brokers have. If the Treasury is successful it will be truly wonderful, if not, it can't get any worse than the OTS, FDIC, OCC, NCUA, State regulatory bodies (only brokers are regulated by the sates, got a complaint about a bank? Call Washington). In any case, less is always better. Less regulation. Less burden. That's what brings lower rates. If the Treasury can do that I'm all for it.
Posted by Andy May on April 22nd, 2008 2:43 PM


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