It’s Very Tight Out There: Even Bankers Having Difficulty Getting Mortgage’s in Today’s Rigid Lending Environment

Home » Uncategorized » It’s Very Tight Out There: Even Bankers Having Difficulty Getting Mortgage’s in Today’s Rigid Lending Environment

Speaking of banks, who hasn’t heard that bankers lending criteria has become much more rigorous since the housing bubble burst?   If you haven’t applied lately for a new mortgage you might be surprised to learn just how stringent lending criteria has become – especially for home mortgages

Recently I talked to our banker, Ryan Vertigan of Torrey Pines Bank which is a Billion Dollar bank aligned with Western Alliance Bancorporation, and it is growing even in these past 3 recessionary years.  We meet for lunch every other month and talk about the economy in addition to ProTec’s financial needs.  This past summer Ryan relayed a story to me that summarizes how difficult obtaining a new mortgage has become.

He relayed that “Despite having 10 years of banking experience, the purchase of my first home was a difficult endeavor.   I had heard of numerous horror stories since the housing crisis began related to short sales of properties, foreclosures, and mortgage loan approvals, but I felt that my industry knowledge would help me to avoid these all too common occurrences.  A 7-month process and several gray hairs later, I stand corrected.

We closed escrow on the purchase of our home in July 2010, although we made the first of three offers (all accepted) in December 2009 on the same property.  The home was originally listed as a short sale, which our real estate agent had warned us about due to their low success rates in closing and extended timeframes.  Due to no response from the lien holder regarding the signed contract, we subsequently increased the purchase price.  The second offer, which was accepted by the seller in January 2010, at least prompted the lien holder to order a BPO.  However, before the BPO was completed, the lien holder foreclosed on the home in February 2010.  We had waited patiently for 3 months and made no progress.

After being off the market for 4 months, the property was placed back on the market for sale as an REO in June 2010.  As we still had not found any other homes that fit our criteria, we decided to make an offer again for the third time on this same property.  The seller (original lien holder) accepted our offer, which was actually lower than the second offer that we had made in January 2010.  I thought the worst part of the process was over, but I quickly learned that it was just getting started.

The company that I work for is predominantly a commercial bank in the San Diego area, so I was not able to obtain a conventional mortgage loan through my employer.  As the lien holder was offering certain concessions (i.e. free appraisal and credit report), we submitted a mortgage loan application with them.

Obtaining a quote and a pre-approval was very quick and simple, but the length of the underwriting process was surprisingly difficult, even though our application was very straightforward.  Despite offering a 20% down payment, a good debt-to-income ratio (W2 employees), and excellent FICO scores, we were forced to jump through numerous hoops due to various requirements, as our loan was eventually sold to Fannie Mae.  We were required to provide endless forms of back-up documentation, and they even asked for future bank statements as of a certain date that would not occur for another 10 days.  This delayed the process and made our 45-day escrow difficult to accomplish in time.  Our escrow was also delayed as the HOA put a lien on the property (after the preliminary title report) because the lien holder had not paid any HOA assessments since the foreclosure.

Although we eventually closed escrow, it left me wondering how anyone (especially non-banking professionals) gets through the home buying process in a timely manner and with their sanity.  It seems as though the underwriting pendulum has certainly swung in the opposite direction, and the requirements to obtain a loan are highly restrictive these days.  Although the real estate industry has shown signs of stabilization, the crisis is far from over due to high unemployment and the fact that numerous properties are still working their way through the foreclosure process.  Until the real estate recovery is clearly evident, I do not see the mortgage application process easing anytime soon.


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J. David Rauch Bio

Dave Rauch is the Founder and President of ProTec Building Services (ProTec). He ensures that work quality is consistent.  Dave maintains a consistent presence within the company.  While managing the growth of ProTec, he strives to improve everything that ProTec does, especially exceeding client expectations.  At Mr. Rauch’s previous company he designed the original HOA manual and monthly building maintenance programs specific for each HOA. In 1996 Dave opened ProTec, which now provides maintenance programs to over 600 communities and other services to 2,000 communities.

George Van Oosbree Bio

George Van Oosbree is the Senior Vice President and Director of Operations in Nevada. He has been a manager with ProTec for 17 years. He holds a California/Nevada General Contractors and painting license; as well as, certifications in Playground Safety and SWPPP. He is also a United States Green Building Counsel LEED Accredited Professional and EPA Certified Lead Renovator.  Developers rely on George’s knowledge (nearly 100 High-rise and Mid-rise Projects) and 30 years of experience to construct sustainable and maintainable projects.

Andy Henley Bio

With over 20 years’ experience in construction management and janitorial, Andy knows what it takes to repair and maintain your largest asset, your homes and common areas at your community. Not only will Andy provide unparalleled customer service for all ProTec’s work but he will ensure that all jobs and service exceed client expectations. Call Andy and request to meet at your community. He will walk your community, detailing what maintenance and repairs are needed to keep your property values increasing.

Candy Allen Bio

ProTec’s controller, Candy Allen, has over two decades of experience in accounting and brings a wealth of knowledge and experience to the executive team.  Candy also has extensive HR, office management and organizational skills derived from her years of experience in the service industry.  What truly sets Candy apart from her peers is her energy and zeal to get the job/challenge done correctly and immediately.  She’ll explain that her success comes from devoting herself to creating a team environment in which the company can accurately track and maintain their various business and accounting systems.  Teamwork, honesty and hard work are all core elements of Candy’s work ethic.

Laura Swirski Bio

As ProTec’s Human Resources Manager, Laura Swirski, brings knowledge and experience in HR and Organizational Development from a variety of industries ranging from property management, non-profit, government, public utility, and hospitality.  Laura enjoys an employee focused and hands-on approach to HR.  She believes employees are a company’s most important resource.  An organization is successful when employees are in the right job and are involved, committed, and work together toward shared goals.  Laura is conscientious, a hard worker, and desires to learn, improve, and make a difference.

Fernando Urrea Bio

Fernando Urrea began his ProTec career in 2009. After a short leave he returned to ProTec in 2014 as the San Diego Maintenance Division Manager. He holds a General Contractors License; as well as, EPA Certified Lead Renovator. Fernando worked at Standard Pacific Homes and Pacific Bay Homes in the San Diego Divisions and has over 15 years’ experience in new home construction management. While working in Military Housing for 10 years he was able get hands on experience on all trades and management skills. His new home building and maintenance knowledge are unparalleled and is what makes Fernando a great asset.

Mark Adams Bio

Fascinated by construction from an early age, Mark developed the skills and knowledge to construct and repair any building. Prior to ProTec, Mark honed his skills at Quality Built Consulting on construction defects/diagnostics nationally. Mark is a licensed California General Contractor and a certified applicator in Excellent Coatings (Waterproof Coatings), SIKA Products (Sealants), PROTECTO Wrap (Waterproof Membranes) and Superkrete (Overlay Concrete Systems). Mark has been a manager at ProTec for 15 years and is the top HOA estimator in San Diego County. He prides himself on being able to assist HOA Boards and Community Managers resolve any type of repair or construction project.

Lee Sterling Bio

While attending Arizona State University pursuing a degree in engineering, Lee Sterling enlisted in the United States Army prior to Desert Storm. After completing his service he began working in the property service industry. Duly licensed as a Building (B1) and Roofing (C39) contractor, Lee rose through the ranks of the industry becoming the Division Manager and acting Chief Engineer for properties in San Diego, Irvine and Brea. His commitment to quality and superior service has earned him recommendations from his peers, clients and customers.

Cesar Ibarra Bio

Cesar Ibarra is ProTec’s Janitorial Manager and has been with the company for 8 years. He ensures that the janitorial work quality is consistent and manages the planning of large level custodial projects. He prides himself in his knowledge of janitorial services and has over 10 years of experience in the Commercial Cleaning Industry. He and his team devote themselves to our clients and provide customized janitorial services that are specifically tailored for each community or project.

Paul Mayeski Bio

Paul oversees ProTec’s Maintenance Manuals and Inspections Division. Before joining the ProTec team in 2000, Paul spent 4 years converting his Industrial Arts education into becoming a trained cabinetmaker, followed by 13 years building custom homes and then 7 years administering building maintenance programs and overseeing maintenance manual implementations for one of San Diego’s largest community management companies.  Because of his combined experience in the building and community management industries, he is uniquely suited to ensure that our clients’ projects are successful.

Chris McHenry Bio

Chris has over 25 years of construction experience in the residential and commercial industries. He has done everything hands on from operate heavy equipment, ro build and remodel custom homes, and commercial tenant improvements. He started working in his family’s business building custom homes during the summers in high school. He moved on as a Project Manager for an apartment maintenance construction company in Rancho Santa Margarita. He proceeded to get his contractor’s license and owned his own company for 7 years. Chris also holds the positions of superintendent on a high rise construction project and Project Manager with an industrial/commercial company.

Sal Mendoza Bio

Salvador Mendoza is our Los Angeles regional manager for ProTec Building Services. Since starting with the Company in 2008 he has devoted himself to the challenging world of maintenance for mid and high rise buildings. Salvador’s past experiences of running his family owned construction business, along with his real estate and mortgage banking experience, provide him with a unique perspective within our industry. He has a created the company’s first Planned Maintenance Contract (PMC), which allows for a custom annual maintenance calendar of the building components for each individual building, enabling clients to plan ahead and have an annual maintenance budget

Mirzet Velic Bio

As ProTec’s Vista Maintenance Division Manager, Mirzet brings immense experience in the HOA industry and knowledge of maintenance, repair and construction methodology. Mirzet joined ProTec in 2006 as an Account Manager.  Prior to ProTec he honed his experience at All American Construction as a Maintenance Technician.  With over 15 years of experience in contract management, construction, electrical, and property management Mirzet can solve any technical problem. However, Mirzet’s true tour de force is his Customer Centric service model; he takes care of clients’ needs before they even know they have a need. 

Timothy (Ty) Haisch Bio

Ty is ProTec’s Construction Division Manager for the North County San Diego region, working out of the Vista office.  Ty joined ProTec in 2010 as a Project Supervisor.  He has moved up in the management ranks due to his excellent work record, supervisory skills, hard-work and dedication to getting jobs done in a timely manner that have made him a “go-to” manager at ProTec.  Prior to joining ProTec, Ty was a manager at TDT Construction.  Yes, Ty has many years of experience, but it is mostly his excitement with solving complex problems, that cause Ty to stand out among his peers.  Ty loves challenges and will happily solve our clients most vexing or technical problem(s).

John T. (JT) Anderson Bio

John learned the value of hard work at his family business at the early age of 5, where he started out as a janitor.  He went on to learn additional trades and skills, where he eventually left the business world to attend college at The University of Hawaii and the University of Utah.  He received his degree in Political Science and Business.  After moving to San Diego in 2004 he founded Elite Services, which provided building services to Commercial and HOA clients.  In 2016, John saw an opportunity to join the ProTec team where he has put his many talents to work, expanding ProTec’s list of 172 services and engaging new clients.