This is a long, somewhat narrow plot of land with multi-unit townhouse buildings set in two rows (the narrow side facing Foothill).

Far in the back I see completed, or what appear to be completed, buildings. It’s difficult to determine if they are actually finished both inside and out, though.

Closer up toward Foothill are buildings in various stages of construction (like with the first layer of roof on) or cleared lots.

I haven’t seen any pick up of labor activity since a couple weeks ago when it seemed awfully quiet for a workday. There is no labor being done whatsoever on the buildings “in progress”. I do see some sign of activity way in the back on the more advanced units. My guess is this is mostly interior work.

This site had lots of trucks, equipment and laborers a few weeks ago. So, unless I’m missing something, progress seems on hold.
Same low level of activity I noticed a couple weeks back.

I’m wondering whether there are many half-built “communities” in the bubble states of Nevada, Arizona, Florida and our dear California. At the very least, I could see these “homebuilders” slowing down the pace of construction on started projects just to keep inventory down.

In a truly ‘neutral’ environment where a borrower were to go to another lender, sure, it seems harmless.

That’s a pollyanna view, however.

The buyer has entrusted this financially and emotionally gigantic transaction to the realtor - trust being the operative word.

For a realtor to then ‘refer’ the borrower to a CFC LO without disclosing that a referral fee is attached to me is unethical, despite it being blessed by the DRE et al. Who do you think pays for the referral fee? The lender? Sure…. in the same way that a seller pays for closing costs. If you’ve read any of Doc’s explanations, you’ll recognize that it’s the BUYER who is paying the costs in the form of a higher sales price, or in the case of a mortgage, a higher rate or fees.

You say ‘casually referred’ - there’s nothing casual about the referral when money exchanges hands.

The direct referral from a trusted source, a so-called warm lead, means the CFC has a much greater chance of closing the loan than does some ‘other lender’. And contrary to the concept of competing on equal footing, internal CFC policy permits management to close a loan just to beat the other guy even if the loan loses money.

Why is this bad? Because the next borrower in line is NOT given the same deal. If EVERY borrower was given the same deal, then such a business model would be non-discriminatory and truly competitive. Why should borrower B who doesn’t go to another lender to beat the price down not benefit from the same terms as borrower A who did? And in the end - again - who do you think ends up paying for the discounted loan, and the referral fees? The next borrower in line.

Good marketing means competing on a level playing field. I don’t consider paying to play an example of a level playing field. In some arenas, it’s called bribery, though here it’s called a JV or ABA and sewn up nicely by the attorneys.

I would like to encourage you and your readers to join me in convicting the criminals behind this growing pandemic. I am not talking about the mortgage broker or borrowers who committed fraud while inflating their incomes. I am talking about the kingpins. The debt rating agencies, analysts and investment bankers who were selling the illegal drugs…I mean loans.

This catastrophe will effect the innocent and the guilty. Those who inflated their incomes and those who did not. Numerous laws were promulgated after the S&L crisis to protect our financial markets from another catastrophe, but the regulators and others dropped the ball.

Have we gone insane, lazy or completely ignorant? These criminals need to be prosecuted!

http://www.youtube.com/watch?v=3MrfX3C8P04
www.discountrealty.com
michaelsblomquist@gmail.com
408-399-0590