Tag Archive for: mortgage bank

Everyone Wants To Jump In The Mortgage Pool! Come On In – The Water’s Boiling

Interest rates fell this week more than most analysts expected, and the 10 Year Treasury Yield is down to 4.67% - surprising everyone, given that we heard so many predictions about the 10-Year staying above 5%. Here are a few reasons why: (1) The Fed announced yesterday that they are not raising rates (and many analysts think they are done raising); (2) More and more prominent analysts and hedge fund managers are predicting a recession and lower rates soon; (3) There are clear cracks in the labor market; and (4) Consumer and manufacturing surveys are yielding surprisingly negative results.Read More

A Crashing Mortgage Industry, Led By Better Mortgage; Uh Oh…

Better Mortgage dominated the refi market for years all the way through COVID by pretty much giving away loans in order to capture market share – like so many tech firms do. And … it didn’t work. At all. Investors like SoftBank and Goldman Sachs originally fell for Better’s story (tech and model made it the “Ferrari” of mortgage lending) investing $1.5 billion. But, Better lost well over $1 billion in 2021 and 2022 (when times were still good) and almost $90 million in Q1 of this year. And … it didn’t work. At all.Read More

Mortgage Banks (Like JVM) Can Broker Loans Too!

A Few Quick Reminders: FHA Rates Are 1% Lower – in some cases: This is a quick reminder that FHA’s interest rates can be as much as 1% lower than […]Read More

Why Would a Mortgage Bank BROKER Loans?

There Are Three Primary Channels In Which Consumers Can Garner Mortgage Loans Commercials banks and credit unions (they do commercial loans, offer checking & savings accounts, and do mortgage loans) […]Read More

Chaos In The Mortgage Broker Channel (UWM Sues Its Customers); Fascinating Observations

I have blogged about the three channels for mortgage banking several times. The channels include (1) banks and credit unions that offer mortgages along with checking, savings and commercial lending; (2) mortgage banks that only underwrite and fund mortgages (JVM’s channel); and (3) mortgage brokers who only originate loans but package and submit them to other “wholesale lenders” that underwrite and fund them.Read More

Jumbo Lending Explained – How We Target Jumbo “Investors” For Every Borrower

We had an appraisal come in low last week, and the agents seemed to believe that our choice of “jumbo investor” (PenFed) had something to do with the low appraisal […]Read More

JVM Is A “Direct Lender” – Does It Matter?

A few weeks ago, we had an appraisal come in under contract price for the usual reason – the total absence of bracketing comparable sales in a very hot market. […]Read More

JVM’s Relationship With Its Mortgage Bank

We were getting recruited last fall by America’s third-largest mortgage bank. B/c of our size and unique model, the CEO showed up to review our entire tech stack, our Salesforce […]Read More

Big Lender vs. Small Lender – Which Is Better?

In July, we aligned with a new, much larger mortgage bank that has the resources to hire a lot more operations staff (underwriters, doc drawers, funders) – and our turn-times […]Read More

HUGE News In The Mortgage World! Nobody Outside Of Mortgages Noticed… Why?

This was a front-page story in the WSJ yesterday: United Wholesale Mortgage Goes Public. United Wholesale’s (UWM’s) valuation was $16 billion and they will get a cash infusion of over […]Read More

JVM Aligns With New Mortgage Bank; The Need For Speed & Jumbo!

We recently aligned with a new mortgage bank for three reasons: (1) to drastically shorten our closing periods; (2) to offer even lower rates; and (3) to access much better […]Read More

Mortgage Banks vs. Commercial Banks; What’s the Difference? What’s Better?

The Wall Street Journal featured an article recently that stressed that buyers in a competitive market need a lender with a stellar reputation, an ability to close quickly, great communication […]Read More

Mortgage Bank vs. Commercial Bank; What’s the Difference?

Mortgage Banks Mortgage banks only underwrite, fund, and sometimes service loans. They do nothing else. They hold no deposits, and they fund all of their loans with large warehouse lines […]Read More

Our Rates Are Lower; How & Why? Rate Surveys & Lending Channels

INTEREST RATES AT JVM We want to address interest rates again b/c we sometimes get compared to some of the large banks offering promotions. LOWERED OUR RATES First and foremost, […]Read More