Tag Archive for: secondary market

How Mortgage Banks/Loan Officers Get Paid?

We are often asked by borrowers and Realtors how we, as a lender, get paid? The answer is that JVM gets paid if and only if a buyer’s loan closes. We typically quote interest rate options with “no discount points.” The no discount points or “no points” option will usually be associated with a slightly […]Read More

Loans Have To Be “Salable;” No Exceptions For Strong Borrowers

We have seen a few major mortgage companies go out of business lately, despite a strong market for mortgages overall. One of the reasons they went out of business was their inability to sell loans on the secondary market. Mortgage banks fund loans with large warehouse lines or lines of credit. They then sell the […]Read More

Difference Between Servicer and Mortgage Holder/Owner

Borrowers often get confused about the difference between their loan’s “Servicer” and their loan’s “Owner”. After a mortgage bank funds and records a loan, they sell the loan either to other “investors” (big banks, insurance companies, pension funds, etc.) or to Fannie Mae/Freddie Mac. In many cases, however, mortgage banks sell the “Servicing” separately from […]Read More

Why’s It So Hard to “Fund” A Loan? Salability & Cash to Close

We often have borrowers and Realtors wonder why it takes lenders so long to fund a loan after all the documents are signed. First, the entire funding package has to be returned to the lender. Upon receipt of the package, the “funder” has to review the entire package with a fine toothed comb to ensure […]Read More

JVM Is a Both a Mortgage Banker and a Broker; Advantages to Both

JVM Lending is and has been both a “mortgage broker” and a “mortgage bank” for some time now. Both channels have significant advantages. We avoided a mortgage bank affiliation for a long time b/c no mortgage bank could ever guarantee us the service levels and low rates we need to be competitive. In 2014, however, […]Read More