Posts

How Likely Are You to Get an Appraisal Waiver? Hint: Not Very :)

WHY WE REFUSED REFINANCES IN 2020 This is a quick aside but a reminder that we stopped accepting refinance applications in 2020. It cost us millions in lost revenue but we did so anyway because we wanted to make sure we could maintain our service levels for purchase business. This is because we knew that […]Read More

How Monkeys Close Loans in 10 Days; Purchases? Not So Much…

30-MINUTE LOANS Closing a conforming (Fannie/Freddie) refinance for a W2’d employee with good credit can take less than 30 minutes of effort on the part of a lender. This is because lenders can now use artificial intelligence to underwrite clean files, and verifications of employment and assets are pulled automatically via the lender’s loan application […]Read More

Fed Speaks – Rates Up; Paying Off Student Loans With Mortgage; Interest-Only Loans

Fed Chair Powell spoke yesterday and sent the bond market into a tizzy, as investors sold off their bonds and pushed rates sharply higher. What crazy thing did Powell have the audacity to say? He acknowledged that the economy is strengthening and that there is an uptick in inflation. In addition, a statement by the […]Read More

Purchase Applications Hit 11 Year High; Refis = 63% of Volume

The Mortgage Bankers Association surveys multiple mortgage banks every week and then releases all of the data. The most recent survey, discussed in this National Mortgage News article, is particularly interesting. Here is just some of the data: Purchase applications are at an 11 year high. Refi applications are 106% higher than last year at […]Read More

Mortgage Rates Barely Move; Hell Actually Breaks Loose; Fed Cuts Rates to Zero

FED CUTS FED FUNDS RATE TO ZERO; $700 BILLION IN QUANTITATIVE EASING In a shocking and surprise weekend move, the Fed cut the Fed Funds Rate to 0% yesterday – which may or may not have moved mortgage rates for reasons I explain often (cuts in short-term interbank borrowing rates don’t often translate to cuts […]Read More

Do Borrowers Get to “Skip” a Payment When They Refinance?

NO COST DOES NOT MEAN NO “CASH TO CLOSE” Almost all of our refinances are “no cost” loans, meaning that we, as a lender, cover all of the “non-recurring closing costs” (title, escrow, appraisal, underwriting, etc.) with our commission or rebate. Borrowers often get confused though b/c they interpret “no cost” as “no cash to […]Read More

What Ever Happened to Shadow Inventory? Gov’t Policy Worked?

For years after the foreclosure crisis of 2008 and 2009, everyone expected a huge surge of “shadow inventory” properties to flood the market. This never happened, and will likely not happen. Shadow Inventory includes all the properties held by banks after foreclosures, properties with pending foreclosures b/c of late payments or no equity, and properties […]Read More

As Values Climb, Refi’s for Many Now an Option

We have a borrower who has been stuck with a 6.5% interest rate for years b/c he thought he did not have enough equity in his Antioch home to refi. We checked today, and his loan-to-value ratio is under 90%; we can lower his rate 2% at no cost to him. He will now save […]Read More