Tag Archive for: mortgage bank

Rates Shoot Up On Hot Jobs Report! Uh Oh – Huge Mortgage Bank Starts Clothing Line?

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I have concrete proof that mortgage banks are getting absolutely desperate – and I will explain why below. But First – Uh, Oh – The Economy Is Hot! On Wednesday, I blogged about how the economy might be much hotter than we realize – and how that will put upward pressure on rates. And sure enough, we got a very hot jobs report today, and it pushed rates way up again. It was a BLS report (so not particularly trusted), and many jobs were in government and healthcare (less healthy growth), but it still contained many reasons for optimism. I say “uh oh” above because a hot economy and strong jobs reports push rates up. And this was not on any mortgage bank’s bingo card earlier this year – when I predicted rates would fall to 5.5% (right before Iran and oil price spikes pushed rates up by almost 3/4%).Read More

More Mortgage Concepts Every Agent Should Know

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There are three primary channels through which borrowers can obtain mortgage loans: (1) commercial banks and credit unions; (2) mortgage banks; and (3) mortgage brokers. Commercial banks like Chase and Wells Fargo hold deposits, offer checking accounts, make commercial loans (and do all traditional “banking” activities) as well as offer mortgage loans. They also hold loans in their portfolios.Read More

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

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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…

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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!

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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?

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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

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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

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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 when that was not the case. Because the agents were smart and very seasoned, it occurred to me that I should explain the nature of jumbo lending in the mortgage banking world.Read More

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

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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

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Our plan is to continue growing indefinitely by taking advantage of our competitive edges (low-cost producer, lower rates, smoother client experiences, faster and better tech adoption, exceptionally talented team, training program, powerful sales and marketing machine, etc.).Read More

Big Lender vs. Small Lender – Which Is Better?

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The drawback to the much larger mortgage bank is more bureaucracy. Because of its size, it necessarily has to apply far more “one-size-fits-all” rules that are not always the most efficient way to do things.Read More

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

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The broker channel has many advantages for loan officers including flexibility (can submit to multiple different lenders and shop for all kinds of loan products), low rates for conforming and FHA loans, and low overhead (maintaining an entire underwriting/banking division is very expensive).Read More

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

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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?

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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