GUT-FLOP (On it's Own Page)

re: GUT-FLOP (On it's Own Page)

Jeff Statz — Fri, 07 Oct 2011 15:37:59 GMT

I wish this article could be bumped with a new comment. If that were the case, I'd bump it every day.

re: GUT-FLOP (On it's Own Page)

Damian Fischer — Thu, 05 Feb 2009 15:21:08 GMT

Great piece.. I can say it covers it and wil be a great training tool for me to share.

re: GUT-FLOP (On it's Own Page)

Matthew Graham — Wed, 04 Feb 2009 20:58:19 GMT

Yeah, I think that deserves to be added instead of implicit Frank. Good lookin' out.

re: GUT-FLOP (On it's Own Page)

Frank Ceizyk — Wed, 04 Feb 2009 20:45:13 GMT

The only consideration I would add to this is loan size. I had several $417k refis I completed last month as "no cost" transactions, that I considered low risk and locked. Since every .125% in price reduction meant $520 of additional lost profit, I locked them in after extensive lock strategy conversations with the borrowers, and am happy to say funded every single one. I had several $200k loans that I assigned to "mid risk", since every .125% meant $250 out of my pocket. I prelocked half and floated the other half, and in the end made more than I lost on the floats as I find most borrowers are risk averse once they are educated about how much it will cost THEM to float a loan. I make it clear to the initial prospective floaters exactly how much every .125% will cost them--(which is probably why the high end borrowers all wanted to lock). Most of my clients floated their stock/bond portfolios and lost an additional 20% before they put the remainder into cash--so convincing a borrower not to float is not that hard if you put in the perspective of what happened to the "wait and see" approach fund managers used with their 401ks the past 6 months. Just additional food for thought....

re: GUT-FLOP (On it's Own Page)

AQ — Wed, 04 Feb 2009 20:35:14 GMT

not much change...slightly improved Nate

re: GUT-FLOP (On it's Own Page)

Nate Miller — Wed, 04 Feb 2009 20:22:52 GMT

Got our .125 back! guess MBS found some takers!~

re: GUT-FLOP (On it's Own Page)

DallasLoanGuy — Wed, 04 Feb 2009 20:19:04 GMT

My Gut has been flopping or a week....