My recent post has generated some very healthy feedback which I am going to try to share as I put the puzzle pieces together over this coming month. As loyal readers may know, I try to see the Vue from multiple perspectives, including the perspective of MCL and the Vue sales team, and try to share those as best and as fair a way as I know how.
The perspective you are going to get in this post is from that of a HIGHLY SKEPTICAL BUYER (HSB). How the Vue addresses the issues of the HSB will be key to its longevity.
The HSB asks…tell me Vue Charlotte, what happened to the most prestigious brand name lenders in Charlotte? Myers Park Mortgage, Bank of America, MetLife, Wells Fargo? Gone? Why? Who is the new ‘Preferred Lender’? Sorry, could you repeat that? Guaranteed WHO????
The HSB hears the explanations. The brand name lenders were ok but they had x,y, and z issues so the Vue decided to change. They weren’t the right fit for what the Vue was trying to accomplish.
The HSB understands that there is a market crossing a broad spectrum and that not everyone buys IBM or GE or shops at Nieman Marcus and Nordstroms. Some want small caps…high risk, high reward; smaller retailers, smaller banks. The HSB is by no means implying anything derogatory about GuaranteedRate. But just as the Republicans claim Obama is no Reagan; just as Dan Quayle was told he was no Jack Kennedy; the HSB would claim GuaranteedRate is no Wells Fargo. The HSB has a point here; let’s face it, in Charlotte, they are not a brand name; and when the top brand names in Charlotte lending are dropped as Preferred Lenders, the HSB has every reason to have their guard up!
Next, the HSB muses on the Preferred Lenders of old and asks, what was the problem? What went wrong at the Vue? Did they not give it their best shot? Were these folks doing like OBAMA used to say (but doesn’t anymore)…not lending enough? Were they trying to continue to destroy our economy just the way they allegedly did during the mortgage crisis? Were these evil bankers and mortgage lenders trying to ruin the Vue Charlotte by hoarding their cash?
Well, the story, in the HSB’s mind, is a little different. And the HSB doesn’t pretend to know every problem that the Vue may or may not have had with the original lenders, and who is in the right or in the wrong. But if you get to the essence of it, whether you are an HSB or not, it is this. The Preferred Lenders are indeed lending…they have money to lend…and are eager to lend to qualified buyers. But in the Vue’s case, the problem was not the lenders, who are ready and willing to lend; rather, it was the combination of the economic position of the buyers mixed with some devastating numbers from the appraisers.
If anyone can make or break sales at the Vue, it is not going to be the lender. It is going to be the appraiser. And from the view of the HSB, the appraisers have been consistent and from what the HSB has seen completely fair and thorough in their assessments. And so if sales are going to suddenly lift off from the new lender, it can and only will mean that there is an appraiser working in cahoots. That is against the law, and would be a huge problem for GuaranteedRate if it were ever to come light. And from folks that the HSB has spoken to, there is no reason to believe that GuaranteedRate would participate in such an endeavor. But either way, this is a no-win situation. The appraisals are not going to change (if they are legitimate). The appraisals up to now have been genuine and arm’s length from the Developer and from the lender (as they legally need to be). If they do change, it will raise many ethical questions. If they don’t change, GuaranteedRate will not make the loans the Vue wants and needs them to. Either way the Vue Charlotte loses, and sales remain low.
This, in summary, is the Vue from the perspective of the HSB. Are you an HSB? Or do you think the HSB is off base? Please send your feedback to Vuebuyer10@yahoo.com.