Tag Archive for: PPI

LOs Can Quote ANYTHING When You’re Not In Contract; Owner-Occupancy Fraud Alert! Hot Inflation = Higher Rates

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We lost a borrower during the pre-approval stage to another loan officer (LO) who quoted an “estimated” interest rate that was 1/4% lower than ours. We tried to explain to the borrower that LOs often quote below market rates to lure borrowers in before they’re in contract – but our borrower fell for the ruse. LOs get away with this because they know they don’t have to lock in the rate before borrowers are in contract. The LOs hope that rates will fall, that borrowers will have short memories, that they can tell borrowers rates went way up since the last quote, or that borrowers just won’t want to go to the trouble of going to a new lenderRead More

Dangerous Myth: “Market Is Soft So I Can Lowball”

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One of the biggest misconceptions our pre-approved buyers have is that the market is soft because of today’s higher rates. While it is a fact that today’s higher rates are keeping an enormous number of potential buyers on the sidelines, it is also a fact that inventory levels remain at record lows.Read More

5 Fail-Safe Recession Indicators

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Three pieces of news surfaced yesterday that should have pushed interest rates through the roof! 1) Inflation (CPI) came in much hotter than expected; 2)The Fed made comments about “rates needing to stay higher to ensure inflation is tamed;” and 3)An employment report (jobless claims) came in much stronger than expected. When I saw this news surface, I thought we’d see rates climb at least 1/4% yesterday, but instead they actually fell a bit.Read More