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Satish Agra
on Tue Sep 22 2020, 7:08 PM
Wish this news came begining of september than later after rates changed already.
thomas paulson
on Sat Sep 19 2020, 9:04 AM
Is this due to loans moving into delinquncy or because the loans are now being paic current?
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Kent Schrader
Mortgage Loan Officer, Assurance Financial NMLS# 70876
on Fri Sep 18 2020, 8:37 PM
Agree with the comments made, but feel the 8000 lb gorilla in the room is the slack in the economy that hasn't yet been realized due to Fed stimulus and the aforementioned Fed asset purchases. With so many businesses shut down or operating at losses, it is too soon to talk about a long term recovery. Few businesses can operate for long at 50% or...
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Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Sep 18 2020, 8:50 AM
I've warned about this from the beginning. It's not as bad as it was in early August, but it's definitely happening at more than a few lenders.
Ly Pham
on Thu Sep 17 2020, 5:50 PM
adverse fee doesn't apply to loans for Purchase, but my borker quotes higher rates across the board since Monday
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Tue Sep 15 2020, 7:49 PM
Betting/planning on rates dropping when they're already very near record lows, with a new .5% refi tax being added to boot, seems ill advised. I've been locking my loans early since this spring, and it's served my clients well so far.
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Fri Sep 11 2020, 1:44 AM
I'm seeing the .5% "refi tax" coming back into play on rate sheets. Remember, lenders have to pay it on refinances over 125K on loans sent to Fannie/Freddie Dec 1 or later. Since the delivery process can take place several weeks after closing, to be safe, most lenders are adding the charge back in sooner rather than later. Pricing still...
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Wed Sep 9 2020, 4:49 PM
Pricing is steady for the moment, but we won't be able to avoid FHFA's new refinance "tax" forever. Time is of the essence for clients considering refinancing!
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Tue Sep 8 2020, 4:08 PM
That cost does (or will) apply to borrowers refinancing with new loans of 125K+, Eric. When FHFA initially announced it with no notice, and would have applied to a huge number of loans that lenders had already guaranteed pricing on. Due to this, pricing worsened on all loans, not just refinances. Now that the fee has been postponed until Dec 1 deliveries...
Eric
on Mon Sep 7 2020, 12:56 PM
Why should borrowers who aren’t refinancing (conventional loan seekers) be responsible to covering this fee with a higher rate? Why not put the refi fee only on the refi borrowers
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Mon Sep 7 2020, 11:00 AM
If CFPB really wanted to deter these abhorrent practices, they'd ban offending lenders from doing VA loans. It would only take a couple of those for the industry to pay attention and start complying. Token fines aren't effective if lenders have already closed thousands of VA loans.
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Mon Sep 7 2020, 10:58 AM
Sadly, that's still a far too common practice, Jake. Unscrupulous lenders will push the envelope as far as they can, particularly when odds of any repercussions are low.
Jake Cadwell
on Fri Sep 4 2020, 5:04 PM
" Advertisements also created the false impression that the companies were affiliated with the government by using words, phrases, images, or designs that are associated with the VA or the Internal Revenue Service." Most of the IRRRL mailers I get do this
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Fri Sep 4 2020, 4:44 PM
If you knew gas was going to go up $.50 a gallon, you'd definitely fill up before it did, right? Same thing here. If you have ANY intention of refinancing anytime soon, get your loan going NOW, not two weeks from now!
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Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Sep 4 2020, 11:34 AM
Yes
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Thu Sep 3 2020, 7:12 PM
Tomorrow will be interesting to say the least, between NFP jobs report and the Labor Day weekend. While lock desks can be reticent to chop rates before holiday weekends, it's important to remember than Fannie/Freddie's new .5% refinance surcharge will soon apply to most refinances. If you're thinking of refinancing, time is of the essence...
Harold Monroe
on Thu Sep 3 2020, 5:13 PM
Your statement above “Wherever he laid his hat was his home… And when he died, all he left us was a loan.” Oh, sorry, “alone.” This reminds me of the song “I want to get you a loan” from the group Heart. It would be great music-on-hold for mortgage companies!
Harold Monroe
on Thu Sep 3 2020, 1:38 AM
The last sentence of the article said "the only difference is that rates will have to drop roughly 0.125% (one eighth of one percent) farther than they otherwise would have". Does this mean that the .5% fee will cause rates to go up by 0.125%?
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Wed Sep 2 2020, 5:49 PM
Homeowners have a pretty compelling reason to move quickly here, knowing that pricing for most refinances will worsen by .5% within weeks. Sure, we "could" pick that up with improving bond markets, but that's hardly a given. Thinking of refinancing? Now is the time!
Rob Brunswick
on Wed Sep 2 2020, 9:53 AM
LOL NO!
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Tue Sep 1 2020, 5:12 PM
My pricing improved noticeably today, was able to get some clients rates I couldn't yesterday. With Labor Day weekend and NFP looming Friday, I'll be looking to lock most loans before end of day Thursday.
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Mon Aug 31 2020, 5:14 PM
Thanks, MG, it's great we recouped nearly all the pricing we lost the last couple of weeks. Might be good for borrowers to note that pricing does vary depending on lock length, and most lenders have robust pipeline volumes, so are taking longer than normal to close loans.
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Fri Aug 28 2020, 6:03 PM
Priced several loans out today, and we were still near August's best pricing. Not sure how much longer this will last, so getting as many folks going as I can while rates are amazing!
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Thu Aug 27 2020, 4:58 PM
Thanks to your astute analysis, MG, I've been locking my clients loans early for several weeks. Sure not going to start floating new ones now, given this continued move towards higher rates.
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Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Thu Aug 27 2020, 1:29 PM
Thank you Dean
Dean Chaney
on Wed Aug 26 2020, 10:07 PM
Yet again in layman's terms a complete summary of what happened, what is happening, and what might happen, with the proper dose of anecdotal input. I could not agree more with the approach to refinance now, refinance later if it makes sense to refinance later. One does not preclude the other, and the savings are immediate. Win now, maybe win but...
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Wed Aug 26 2020, 7:19 PM
Loan pricing is based on numerous criteria, including equity, location, loan size, loan purpose, credit score, property type, lender margins and more. Anyone who quotes a rate without first confirming all the pertinent details is not doing his due diligence.
John Marshall
on Wed Aug 26 2020, 6:04 PM
Its funny how things repeat themselves. Back in the 70/80's, it was not uncommon to pay 3 points for a rate. Later in the '80's people wanted to pay points. We would offer a quarter percent increase in the rate for every point. Now people are trying to market this. WOW. They need to understand IRS implications and consider how long you plan...
T O
on Wed Aug 26 2020, 5:05 PM
Great rate! Congratulations! I wonder how much location/state varies among rates. I was happy when we locked at 2.75 with $4700 in closing costs. Just had our appraisal. I think we just have to move forward....
Jimmy Kay
on Wed Aug 26 2020, 4:18 PM
contact your lenders again. Make sure to search for at least 10. also, lenders from the internet are a lot cheaper than banks or credit unions or local brokers 2.5% no point is back. Just contact some lenders, if your LTV is les than 75%, your credit is over 740 and you have stable W2 job over 2 years
Jimmy Kay
on Wed Aug 26 2020, 4:17 PM
It should go down It was unjustifiable for some companies to raise by more than .25% interest rate. all those rates locked last week will be seeking new rates and lenders will keep the price up to make up all the locks they burned. what a mess anyways, 2.5 with 1600 lender credit is back on at this one online mortgage company
Vogol
on Tue Aug 25 2020, 6:35 PM
JB Green - Great. I will contact your email next. Thanks a lot.
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Tue Aug 25 2020, 5:34 PM
Well, better for FHFA to fix this now than not at all. It'll definitely be interesting to see how lenders and investors adjust their rate sheets. Hopefully we'll get back down in the 2's for top tier scenarios again!
Vogol
on Tue Aug 25 2020, 4:03 PM
@ Jimmy Kay do you mind telling me which bank you got your 2.5% from? @ Sam G do you mind telling me which bank you got your 2.5% from?
Sajer Guy
on Tue Aug 25 2020, 2:48 PM
Can you clarify if these new Fannie/Freddie fees would apply to a VA IRRRL refinance? Thanks in advance!
Jimmy Kay
on Mon Aug 24 2020, 10:49 AM
I am currently locked with 2.625 with 1400 lender credits. This was done after that 0.5 increase by FHHA. I will only have to pay 1300 third party closing costs and for escrow (roll into the loan or pay and get refunded). The other company I put the app I am floating down. They said hopefully they can get me down to 2.375 with 500 lender credit. The...
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Mon Aug 24 2020, 12:43 AM
Not saying those aren't true quotes, Jimmy, but until you have a locked LE, all they are are quotes. Guessing your loan size is at higher end of conforming range and equity is high as well.
Jimmy Kay
on Sun Aug 23 2020, 3:09 PM
2.625 interest is with 2.63 APR and 2.5 interest is with 2.56 APR My credit is close to 800, and I have a stable W2 job though, if that matters
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Sun Aug 23 2020, 2:21 PM
JB, lenders are required to honor locked LEs (Loan Estimates) unless a valid "Change of Circumstance" occurs, such as loan to value. credit scores, or loan purpose changes. Tell your lender he needs to close your loan per the LE (presuming you HAVE a locked LE) or you'll forward to state banking commission.
Jimmy Kay
on Sun Aug 23 2020, 2:10 PM
Just got offered 2.625 with 1400 lender credits. Another one is offering 2.5 with 800 lender credits This is for a fixed 30 year. Anyone offering more than 2.75 is not giving a good deal. Keep looking
Sam G
on Fri Aug 21 2020, 8:37 PM
Locked in a rate at 2.5 with about .8 points in credit (pre FHA nuke). I'm assuming it'd be about .5 points in credit to go with 2.375% which would mean out of pocket closing costs of about of around $750. Break even would be around 2.5 years. Do you all believe rates will eventually fall below 2.375% and that I'd refi again in the next...
WN
on Thu Aug 20 2020, 6:15 AM
Sally, 2.50% 30 yr is out there, you just have to meet all the 'bells and whistles', and no points either. . $80k loans ain't cutting it..
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Wed Aug 19 2020, 9:22 PM
Bottom line, rates at least weathered FHFA's stunning 50 bps g-fee increase. For a few minutes last week, looked like we'd be in 3's now, but top tier scenarios are still comfortably in the 2's. Like your rate? Lock it. Don't mind if it gets worse? Float away, but realize the risk.
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Wed Aug 19 2020, 9:13 PM
NO, Sally. I would be stunned if anyone was offering that now, after last week's 50 bps mortgage pricing adjustment.
Sally Hom
on Wed Aug 19 2020, 5:30 PM
@ J.Jons did you lock in already with Cityworth? What rate do they offer for 30 years? If We apply with multiple lenders and if all approved our refinance applications, what do we? Does it impact your decide score?
John R
on Wed Aug 19 2020, 12:21 PM
@Sally Hom It is Better.com I locked in before FHFA levied 50 basis points crap fee.
Sally Hom
on Wed Aug 19 2020, 3:05 AM
@ John R. Can you tell me which lender do you use for no points no fees at 2.5% 30 yrs. @trood do your bank offer no points no fees 20 yrs conventional loann@ 2.5%?
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Tue Aug 18 2020, 5:10 PM
There's no way FHFA drops that tax, J Jons. I wouldn't float in hopes of it not applying on your loan.
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Ted Rood
Mortgage Banker, The Federal Savings Bank
on Tue Aug 18 2020, 9:38 AM
Gotcha, just thought I'd mention the possibility.
T O
on Tue Aug 18 2020, 7:32 AM
@Ted Rood - Thank you! Yes, the value is over that limit. Unfortunately our rate is based on 70% LTV so I don’t think we can lower the value without jeopardizing our rate. Too bad. We will just pay for the appraisal and be thankful we locked in on the 7th before the rates jumped.
 

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