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Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Tue Jul 17 2018, 1:42 PM
"Legislative blowhards get through their grandstanding more quickly with Powell as the Chair.." Ha, ha! Let us hope he continues to do a good job at minimizing their posturing.
WN
on Mon Jul 16 2018, 10:47 AM
Interesting, Lenders trying to cut overhead with technology that is not free and cost frankly quite a bit. You want to save go back to old school Broker model like I did. NO Retail Lender can beat and I still never miss a close while offering up to a .250-1pt better in rate.
Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Thu Jul 12 2018, 2:11 PM
Oh my goodness... how very long ago it was, after learning someone's specific goal (s), that I learned in refinancing to help direct the comparison to actual monthly savings regardless of rate! It was sales 101 for a Mortgage Consultant, and I had to learn it well as so many people can get fixated on rate. But I understand what you are saying Ted.."a person has their mortgage loan at 3.5% and why would they want to give that up for 4.625%?" Often I have to show the monthly savings comparison after paying off debts and obtaining a rate a point higher compared with what they currently have. And...what if you took the actual savings and used it to pay down the mortgage quickly, how much would you save? Usually, they then would save many thousands of dollars. Rate can be a psychological hurdle though..."oh my goodness...yes I see I save $600 a month, but I do not want to give up my 3.5% rate for 4.625%"! Then there is always the heloc. So often borrowers are paying the interest only and never pay the heloc down while the interest rate may be rising and rising. But they may hope some day they will get a rate to their satisfaction to finally refinance the heloc into a first mortgage only. Also, a heloc is not tax deductible generally unless it was for home improvements, right? I have heard that but am not a tax consultant and always recommend you consult yours before deducting the interest in calculating your income taxes
John Rodgers NMLS 88677
CEO, Prime Mortgage Lending Inc. NMLS 69551
on Tue Jun 26 2018, 11:19 AM
Dan, Sales, and Marketing account for over 60% of loan costs. Many believe that if you build a slick front-end customer solution then you can reduce the costs for sales and marketing. Lenders have cut and are finding ways to cut out or reduce third-party spend but the LO's don't want to participate in cost-cutting. Something has to give and LO's bouncing from company to company chasing margins and bonuses are not a long-term solution.
on Mon Jun 25 2018, 8:56 PM
Collecting borrower data via tech no ology doesn't save $ since LOs still have to review it. There lenders that think a tech-driven system that the borrower just takes a picture of their asset statements with their phone and uploads it will solve the cost issue are clueless. There are so many other wasteful areas for lenders to cut costs before trying to replace the LO with technology.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Jun 22 2018, 8:41 AM
Seems to be an issue of an "economic tracking" mindset versus that of the average mortgage rate stakeholder. From an economic tracking standpoint, this amount of lag time and accuracy is quite good! The catch is that almost anyone who reads articles about mortgage rates is either in the mortgage business or in the market for a mortgage.
Ted Rood
Senior Loan Officer , Busey Home Morgage
on Thu Jun 21 2018, 6:34 PM
Thanks for mentioning Freddie's "somewhat obsolete" rate survey again, Matt. As outdated as it is when it comes out, it gets even worse when media outlets pick it up several days later after rates have had even more time to change. No one would want to track last week's stock movement 4-8 sessions later if they were interested in current stock prices, but for some reason that logic doesn't always carry through to bonds.
on Tue Jun 19 2018, 11:04 AM
The author should have also mentioned the untapped equity for those over 62 with the new HECM or H4P product. Over 50% of baby boomers will outlive their retirement savings and will be looking for ways to tap into their home equity.
Ted Rood
Senior Loan Officer , Busey Home Morgage
on Mon Jun 18 2018, 8:17 PM
Here's your key takeaway: "60 percent is held by homeowners whose mortgages rates are below 4.0 percent". Cash out refinances aren't as appealing (equity or no) if your rate's going to go up considerably. Sure, HELOCs are an option, but their rates are headed up, seemingly every quarter.
on Mon Jun 18 2018, 6:02 PM
Maybe they don't WANT to tap into their Equity, possibly putting their homeownership at risk...
Ted Rood
Senior Loan Officer , Busey Home Morgage
on Tue Jun 12 2018, 5:15 PM
Rates seem quite content where they're at, which is both good news and bad....Good, in that they're no longer rising daily.....bad, in that they're at multi-year highs. Guess it depends on whether you see the "rate glass" as half full, or half empty!
Ted Rood
Senior Loan Officer , Busey Home Morgage
on Fri Jun 8 2018, 7:05 PM
As an 18 year loan officer, I'd love to hear more about those 100%, no appraisal loans, guessing if they really exist they are strictly a very local (likely CU) product. As far as the data, it's from the Urban Institute, which is hardly an objective party here. To say "default rates are "as low as they can possibly be" is completely subjective and hardly factual.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Jun 8 2018, 5:11 PM
Greg, why do you assume it's "the author?" Jann is a reporter who is reporting on research published by the Urban Institute. Don't shoot the messenger.
on Thu Jun 7 2018, 2:18 PM
This may look good for manufactured housing, and some will cheer this. But a close reading of various industry commentary would suggest that Fannie is giving yet another head fake. Example: http://www.mhpronews.com/blogs/daily-business-news/fannie-mae-touts-mh-advantage-program-but-manufactured-housing-association-slams-plan-as-illegitimate-bait-and-switch/
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Tue Jun 5 2018, 5:12 PM
The source material didn't include AK/HI on the charts, and AK wasn't even mentioned in the text of the report except as a line item on one table. It included the following stats: Delinquency: 2.9%, Foreclosure: 0.5%, Non-Current: 3.4%, yr/yr change in non-current: -4.1%. That puts it at number 15 in terms of loans in any stage of delinquency (non-current is an umbrella that includes the other 2).
on Mon Jun 4 2018, 2:32 PM
Why is data for Alaska & Hawaii not included in those graphs showing a state breakdown of Payment-to-Income? Just wondering if it's a space issue, one regarding the availability of that data, or something else. Most of our mortgage origination is in Alaska, so it's especially interesting to me.
on Wed May 30 2018, 12:02 PM
Mortgage Rate Recap
on Tue May 29 2018, 12:25 PM
This article helps create confidence in first time home-buyer programs, especially the ones that involve an infusion of government accountability and financial support. If you are short on time, please read the following two key sentences. Please read this if you want to see young people have a shot at owning a home. Not only are HFAs more likely to require full documentation and careful underwriting, they also serve as a third-party monitor on the partner lenders originating loans through the state program, creating an additional incentive for careful screening by the lender. This highlights the potential role for policies that increase the transparency of lender origination practices and that incorporate mechanisms for monitoring by third-parties.
on Tue May 1 2018, 9:43 AM
The fed should remain acutely aware of the effect of raising interest rates on the affordability of home ownership as well as the foreclosure rate on variable interest rate mortgages.
on Tue May 1 2018, 9:43 AM
The fed should remain acutely aware of the effect of raising interest rates on the affordability of home ownership as well as the foreclosure rate on variable interest rate mortgages.
on Fri Apr 27 2018, 2:45 PM
hahaha. Thanks! So true on every point. I think I want to give this to every new client.
on Tue Apr 24 2018, 12:33 PM
It all about efficiency through automation of marketing activities, particularly on social media. Internal statistics at my company show that LO's are able to close an extra loan per month by engaging on Linkedin alone! However, content must be able to pass an audit for compliance so utilizing a platform that archives and monitors all social media activity can greatly increase ROI and leave lenders feeling less inhibited when it comes to utilizing their social networks for lead generation.
on Thu Apr 19 2018, 9:02 AM
I have been an Underwriting Manager, Operations Manager and Training Manager for over 20 years. I can assure you that everywhere I have worked rental history has been taken heavily into account when reviewing a potential borrower's liability payment history. It is considered at the top of the payment hierarchy and adds or subtracts from the layering of risk of the overall loan. I am not sure what companies are not considering rental payments in their underwriting reviews, but maybe those companies need underwriting training, not people spending time doing research on something that should be an underwriting standard.
on Wed Apr 18 2018, 2:22 PM
Costs to originate mortgage loans are overwhelming many lenders. Direct-to-consumer models are now trending as one remedy. Digital mortgages are going from "nice to have" to "must have." Gained efficiencies and cost reductions from using a true point of sale platform like BeSmartee is a viable tool to combat rising costs.
on Tue Apr 17 2018, 11:09 PM
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Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Tue Apr 10 2018, 2:14 PM
These results from polling in March showing such an increase in those indicating it is a good time to buy a home compared to February when there had been a decrease in favorable responses, are certainly boosted by optimism in the overall direction of the economy, as you point out. March thru June seems to have been the hottest time for home sales for some years now in our area. I would also be interested in adding a question in polling of would be home buyers: "how often have you viewed televised shows on home shopping and renovation on TV or the internet? I think these shows inspire more people to want to own their own home.
Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Tue Apr 10 2018, 1:53 PM
Pauline, You might look into possibly utilizing a DPA program be it a "silent second" in which you owe the money provided for the down payment but do not make any payments on it until the first mortgage is paid off or you sell the home. A grant is another possibility wherein after a period of time the assistance loan is forgiven. There are income restrictions on obtaining these. However, if you do not quite fall within the guidelines regarding income we provide one down payment assistance program with no restriction on income level. If within certain income parameters it can eventually be a forgiven debt. Otherwise, it would be like a "silent second". In some cases one could even get assistance on closing costs (income restrictions). In high priced areas home buyers with only one person moving in, have qualified while making beyond $100,000 a year.
on Thu Apr 5 2018, 2:32 PM
I would love to buy a house or townhouse here in Los Angeles. I can afford the monthly payments, but I'm not going to drain my IRA for the down payment. That's been the main reason why I am unable to purchase another home.
Ted Rood
Senior Loan Officer , Busey Home Morgage
on Thu Apr 5 2018, 11:10 AM
I can't say I find month-to-month changes in average LTV's or credit scores indicative of decreased "mortgage credit availability". If agency requirements haven't tightened (which they haven't), fluctuations in loan parameters are really more a gauge of borrowers' qualifications rather than mortgage availability.
on Sat Mar 24 2018, 8:37 PM
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on Thu Mar 22 2018, 11:01 AM
"a huge dose of fairness" . Self servings comments like these from Florida's Realtors Vice President help explain why the real estate industry has a bad reputation. In typical Realtor fashion he does not look at what the long term consequences would be of automatic debt forgiveness, my guess is all he is worried about is earning a commission.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Mar 16 2018, 2:00 PM
Thanks Michael. We fixed it.
Larry Gray
Senior Mortgage Banker, Guarantee Mortgage
on Wed Mar 14 2018, 8:54 PM
Jann, you provide a reaffirmation of the importance of location, location, location even for millennial homebuyers as it has been for gen x and baby boomer homebuyers. It is one thing to look at commuting over an hour to a new housing development in a semi rural area from work in a metropolitan or suburban area, and another to look where they really want to be...closer to work and often closer to more cultural/entertainment amenities along with access to better schools. In my state we see new home developments are cropping up all over the place in big numbers if not sufficient numbers. The big challenge is building in specific metropolitan/suburban areas for which there is a very strong demand for housing. Potential construction in these areas are far from large as in the agricultural areas converted to housing, and thus usually only a few, small lots. The so called NIMBYS in suburban areas...oftentimes unfairly described that way...could be already feeling crowded by adjacent housing. Housing advocates are often asking them to allow new construction at a level that has been inappropriate for a more suburban, non metropolitan area. Nonetheless, the housing need is real, and the desire to purchase by Mellennials will only continue to increase. So if there are areas like on the West Coast...greater Seattle, Portland and San Francisco where businesses are growing and prospering in record numbers and in constant need of new employees, there is an obvious need for more housing. That only 2% of Mellennial homebuyers are purchasing condos does lead one to believe that there is a shortage of affordable condos in the metropolitan or suburban areas they wish to buy in. At some point young people planning a family generally want a single family house but many will initially purchase a condo when it is affordable to them. I currently have a loan in process for a Mellennial purchasing a condo in a desirable part of a city. This is one unit in a former warehouse converted to a condominium complexe. More of these are needed all over the S F Bay Area and single family houses where ever they can still be built. However, many Mellennials who insist on a single family home over a condominium will need to accept making a long commute!
on Mon Feb 12 2018, 10:20 AM
Under the new Tax Reform , interest on 2nd loans is not tax deductible. This means that all those folks with ultra low fixed rates will have to refi into a higher rate if they want to extract equity with tax advantages. That is if you meet the $750,000 loan max threshold.
on Mon Feb 12 2018, 9:32 AM
When are lenders going to jump back into 2nd Mortgages. I believe they are really missing out. This is a great way to pick up the slack for refis and not to mention help with future demand!
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Feb 9 2018, 8:06 PM
There are a lot of people who would say they seem a lot higher as well. Take the widely-followed Freddie Mac survey, for instance. My rate calculations have been persistently higher than theirs throughout this sell-off. (See the chart on this page: http://www.mortgagenewsdaily.com/data/30-year-mortgage-rates.aspx). If anything, I'm pushing the pace when it comes to letting consumers and LOs know just how fast rates have moved higher. If you're not seeing the same, there are a few common reasons. The most common is that your particular lender is behind the curve, or simply somewhere in the middle of it. Given that you work for a subsidiary of Stearns, this is entirely possible as they're not currently the most aggressively priced lender (about middle of the pack). The other potential crossed wire would be that the highlighted rates are the most prevalently-quoted rates for top tier scenarios (i.e. no LLPAs). Finally, it's also possible your shop hasn't tightened margins as much as many shops have into the rate spike. Affordable rate buydowns have resulted in more quotes going out with origination/discount points in order to keep the note rate lower. My "prevalent" section doesn't account for compressed margins or increased upfront costs. All that having been said, if we're talking about top tier scenarios, 4.375-4.5 is widely available with little-to-no discount/origination.
on Thu Feb 8 2018, 3:18 PM
Where might you be getting the "Most Prevalent Rates" information? They seem much lower than what's actually going on in the market.
on Wed Feb 7 2018, 10:02 AM
Wake-up America-- FNMA/FMCC is a property rights issue! The Government "needs to protect the taxpayer" from publicly traded compnaues that produce BILLIONS of dollars in Net income?? The Conservatorship is a FRAUD! The 2008 "deal" was once FNMA/FMCC paid back the Treasury the stakholders would get back their shares,, FNMA/FMCC have PAID BACK the money,so why havnt the stakeholders gotten back their shares??? I authored a Resolution that was UNANIMOUSLY passed by the RNC..Go to GOP.GOV,,, go to bottom of Home,,click on Rules and Regulations..To date RHINO Corker and rest of Congress just wants to STEAL stakholders cash flow and profits to fund their greed..Demand the GOP honor their Resolution,DEMAND Congress return stakeholders what is rightfully the stakeholders..If the Government can STEAL the shares of FNMA/FMCC,then who's next?? APPLE ?? WAKE-UP America !!!
 

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