August 27th, 2012

Super-Sized Loans, Part III: Explaining Debt Ratio

Posted by at 12:53 pm

A common problem for both jumbo loan borrowers and investors is the debt ratio. The wealthy (aided by their financial advisors) are extremely crafty at not showing income. When they attempt to qualify for their loan, it is common for this demographic to not understand why showing $500,000 in gross income is not enough to get a $1 million loan with 30 percent down. It takes a savvy, experienced–and equally crafty–loan officer to tactfully explain that $468,000 in expenses and deductions means they have a bottom ratio of 248 percent. After explaining this, one would be wise to duck for cover or move the phone six inches away from the ear, since the seemingly entitled borrower will be frustrated to the point of finger pointing, epithet hurling and raising the volume several decibel levels. The typical wealthy patron will blame...
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August 6th, 2012

Ask Our President: Brett Morgan on Bay Equity’s Greatest Accomplishment

Posted by at 7:00 pm

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We have weathered the storm so far, from starting Bay Equity as the market was deteriorating in 2007, to overcoming the challenges of getting a mortgage company started with no track record. We have been able to get our company from a balance sheet perspective through retained earnings to where we are now considered a quality counterparty, and eligible for key industry programs that will help us get to the next level. In 2011, Bay Equity was named to the San Francisco Business Times list of the “Top 100 Fastest-Growing Private Companies” in the Bay Area. The list ranks the fastest growing independent and privately-held organizations in San Francisco and the surrounding Bay Area by revenue growth from 2008 through 2010 as identified by PricewaterhouseCoopers. Bay Equity revenues grew more than 1,500 percent in that time frame and the company expects its...
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