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More than a few people chuckled at me when I told them that I have a plan to bring a new approach to the mortgage finance business.  How often do you hear some nucklehead say something like this?  Usually the culprit is a mortgage broker who had a visionary new idea like sending his past clients more flyers in the mail! Or, pre-2008 financial collapse, only charging 1.5 points of interest on the back end of the loan! The mortgage industry is notorious for spitting out the same tired mortgage products and calling them different or special or unique because you get a Christmas card or a birthday card in the mail. And what are the mortgage industries solutions for individuals with bad credit or no established credit? They basically have no mortgage solutions for these people they just don’t give them mortgages. It is definitely the case that some individuals are not responsible enough or possibly even intelligent enough to qualify for a mortgage but I think this is probably only a tiny fraction of the populus. The reason that so many Americans have bad credit is due to poor education in the area of personal finance more than anything.  It doesn’t take a rocket scientist to figure out how to set enough money aside each month to make a mortgage payment on time. This is a concept that even a young man washing dishes late itto the evening at a Olive garden can figure out.  And once the busboy or the dishwasher has some ownership in this society of ours via owning a tiny house or container home he very quickly begins to take some pride and what is he is accomplishing with himself and with some time he is also building substantial equity.  The young man washing dishes made even decide that he is made to do more with himself than scrape fettuccine and spaghetti off an endless streyof plates.

No, when I say I have a new approach, I have a totally new approach.  And I’m no mortgage broker. Actually, I’m not a financial engineer like many of the folks I used to place on Wall Street with Ivy League educations often including PhDs in mathematics and quantitative analysis.  My new approach to the mortgage business is old school in a way by this I mean it’s easy to understand and client centric.   You will never hear me pitch some sort of mortgage back security or collateralized debt obligation to anyone.  I want to get rich off my mortgage business the old fashioned way-by offering my customers totally outstanding products. One thing I know is that the best ideas are almost always simple and easy to execute.  I believe a financial engineer on Wall Street would be somewhat bored with my ideas but not at all bored by the results I’m going to have.  So here it goes….

Every individual who foreclosures on a mortgage does so for the same reason.  That reason is that he/she can no longer pay the mortgage.  This can happen for a variety of reasons however the cause is usually something somewhat catastrophic.  A mortgage holder has lost his job.  The mortgaged home doesn’t have adequate insurance and the place can not be repaired after a natural disaster.  The mortgage holder stops paying the mortgage because he no longer has the financial resources to make the monthly payment or he is for some reason using his financial resources for other purposes each month.  If the mortgage holder is not putting his mortgage payment first and foremost that he is probably more than anything confused.  After all, it’s hard to accomplish much in life without a steady place to live and lay your head.  I’m of the opinion that a large percentage of individuals with bad credit and no credit have had little to no education regarding personal finances.  This could be corrected by linking these individuals up with a financial advisor and putting together a short course that gives potential mortgage holders all of the basics and essentials of personal finance.  Before any mortgage company that I owned was going to give a loan to an individual I would want them to have completed a basic course in personal finance. 

Now, moving on to the primary reason that individuals default and foreclose on their mortgage. Primary reason for foreclosure has to do with maintaining steady employment.  My two decades of work as an executive recruiter make it very clear to me that a placement agency or an employment office can work wonders for individuals who have trouble maintaining steady work. A good recruiter can help almost anyone find permanent long-term work and for those who are already have steady employment, the recruiter can help these individuals know their worth and hopefully to manage a higher pay and benefits from their employer. 

I told you that my idea is not very complicated! The mandates of my mortgage program are straightforward and simple. Before you can get a mortgage with my company you need to have a job, a full-time job. Next you need to finish our course and personal finance. And lastly, you need to get in touch with a recruiter and maintain a relationship with him so if you ever lose your job you can quickly find a new one.  For the lifetime of your mortgage with us you have a financial advisor and recruiter on your team helping you to obtain the best employment options possible and to make sure that you never have unanswered questions regarding mortgages and investing for your future.

Banks in America are pathetic when it comes to customer service. Once you have signed on the dotted line with them and the mortgage is in place they almost go out of their way to offer no more services to you. And if a mortgage payment is late?  Well, they use a series of fear tactics to make your life miserable until you either make the payment you have missed or foreclose.  These banks are not you partner through life like they should be.   The entire manner in which the mortgage business in run needs to be changed.  We are going to change the entire way that the mortgage industry works.  This is going to put some real pressure on banks and put the worst of the worst of them out of business.

How are we going to pull these changes off you may be asking.  Instead of relying on banks to finance loans we are going to work with fellow Americans who have enough extra money around to invest in the future of Americans like yourself. These American investors will by providing the capital necessary to finance your mortgage. These are Americans just like you who have experienced a little more success already in their professional endeavors and have that extra money around to make a large scale investments in your future.  So when you get a mortgage with us you are actually helping fellow Americans gain income and wealth and prosperity rather than helping a large bank. The only way these banks will make positive change is if they feel it in their pocket book.

My name is Edward Storm and I am the founder of the Street Scout LLC.  You’ll be hearing a lot more from me in the future as my new company gains momentum and the investment we need to be all we can be. If you’re interested in learning more about becoming a mortgage investor or obtaining a mortgage through our services please contact me or one of my colleagues. 

Written by Edward Storm