I have now seen my first loan fallout form this fiasco: a beautiful four million dollar construction loan in Greenwich, Connecticut.My loan application package was complete, the loan almost ready to close, and the lender decides they want fully documented tax returns for the last three years.Of course, someone who can lives in a nine million dollar house and afford a four million dollar mortgage payment, probably cannot document their income.So, the loan falls away.

     Am I mad!! All that work and my loan cannot close! Of course not!! I immediately sent my loan to a local savings and loan where I have done business before and know upper management. I will get an extension on the mortgage contingency clause and have an approval faxed to me within a week.Call me super broker; because that is how a feel.The fact is, it is very important to have a network and good relationships in any industry.However, I am finding this most important and meaningful to me at this point.

     I find it so odd that large lending institutions are going out on a dime and colleagues are closing their doors after 30 days. I thought people were stronger and smarter and am crushed by the fallout I see around me.I am upset and surprised by the number of companies that did not have enough liquidity to stay in business more than a month after hard times hit. It should be a lessoned learned, but the industry did not learn in the 80’s or 90’s.I can only assume that they will not learn now….only forget.

Wow, do I need that vacation!

-Dale Siegel