Tag Archive for: mortgage banks

Why Mortgage Banks and Democrats Hope Trump Is Wrong; BLS Proved To Be BS Again

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I. The Bureau of Labor Statistics (BLS) has been releasing employment reports for several years running that have been ridiculously inflating job growth – and sending rates way up! What […]Read More

Owner of Mortgage Servicing Vs. Owner of Mortgage: So Much Confusion

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This is another mortgage concept agents should understand: Servicers vs. Mortgage Note Holders – what’s the difference? About 20% to 30% of mortgages are portfolio loans, meaning they are still held by the lender that loaned the money.Read More

Blame Mortgage Banks For High Rates! The One Thing That Makes The Fed Cut Rates

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The Fed looks at many factors when deciding to cut rates, including inflation rates, GDP projections, consumer sentiment, manufacturing output, retail sales, and more. But there is one thing that […]Read More

Mortgage Banks Vs. Commercial Banks – What’s The Difference?

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Here are some of the major commercial banks that are heavily involved in residential mortgage lending: Wells Fargo, Bank of America, JPMorganChase, U.S. Bank and PNC Bank. Here are several major mortgage banks that now help dominate residential mortgage lending: Rocket Mortgage; United Wholesale Mortgage; CrossCountry Mortgage; loanDepot; Fairway Independent Mortgage; Guild Mortgage; Guaranteed Rate; and American Pacific Mortgage.Read More

Mortgage Banks Do Not Report to ICE, Homeland Security, IRS, FBI or Any Other Agency – Unless They See Obvious Fraud

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We unfortunately have a lot of nervous potential homebuyers on the sidelines because of what is currently taking place on the immigration front – with respect to deportations in particular. Hence, I am reminding blog readers that mortgage banks NEVER report anyone to any agency ever…unless they see blatant and obvious fraud.Read More

Are Things FINALLY Turning Around For The Better?

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“Things Are Turning Around” Barry Habib told us today in his morning update. He pointed out that rates are finally falling consistently, existing homes were up in November (despite record-high rates when those buyers were shopping in October), and inventory is climbing as well. All this is happening during “slow season” too, so things should be far better by the busy spring selling season.Read More

Who Buys Loans From Mortgage Banks; How It Works & Why It Matters

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Most mortgages in America are funded by “mortgage banks” – which are entities that solely originate, underwrite, and fund mortgages; they do not hold deposits or do any of the […]Read More

Commercial Banks Pulling Out Of Jumbo Market; Why & What It Means

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Commercial banks are pulling out of the jumbo market rather suddenly – after dominating it for the last year or so. The question is why and what does it mean? […]Read More

Pyramid Lending = Death of Mortgage Banks

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During boom times, when there is excess business and margins are fat, “pyramid lending” can work. But – when business slows and margins compress like what has been happening this year – pyramid lending not only does not work, it will kill off many mortgage banks. This is because borrowers can shop for rates and apply for loans more easily than ever nowRead More

The 3 Primary Mortgage Lending Channels: Banks, Mortgage Banks & Brokers

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JVM was in the mortgage broker lending channel for years but we left because we had appraisal and service issues, and we needed far better jumbo rates. Brokers do not underwrite or fund loans. They only “originate” loans and then send them to outside “wholesale” lenders for underwriting and funding. The broker channel dominated mortgage lending prior to the 2008 meltdown.Read More

5 Reasons Why Mortgage Banks Charge Different Rates

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The issue every time though is that the mortgage banks increase the rates the loan officers have to charge their borrowers in order to cover the cost of the co-marketing (because higher rates generate more yield premium/commission when the loans are sold).Read More

“Non-Bank” Mortgage Lenders vs. Banks; Who Are The Players? Why It Matters

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The only “non-bank” player that most Americans have heard of is Quicken Loans, and that is because of its massive amount of advertising and because it is now the largest mortgage lender in the world.Read More

Low Rates & Early Pay Off Penalties; Six Months Is All We Ask

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Rates have fallen about 1/4 percent over the last few weeks and they are almost 1% lower than their peak only a few months back. As a result, everyone is […]Read More

How Mortgage Banks & Loan Officers Get Paid

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Borrowers and Realtors often ask how mortgage banks and loan officers get paid. The answer depends on whether points are paid, how loans are sold on the secondary market, and the structure of the lender. JVM’s model creates a cost advantage for buyers — here’s how it works.Read More