Any mortgage guru's on anantech?

[Yukmouth]

I've been in mortgage for seven years and unfortunately 3 to five year arms are a thing of the past.

I'm working at the moment, but not in a position I care to be in.

Just wondering if there are any other people involved in mortgage on anandtech and what you're doing now that ARM's are no longer the rave. Purchase's aren't generally that profitable and refi's are a pain a** without NIV doc guideline's.

Where's the money right now???

 

[OCGuy]

Originally posted by: Yukmouth
I've been in mortgage for seven years and unfortunately 3 to five year arms are a thing of the past.

I'm working at the moment, but not in a position I care to be in.

Just wondering if there are any other people involved in mortgage on anandtech and what you're doing now that ARM's are no longer the rave. Purchase's aren't generally that profitable and refi's are a pain a** without NIV doc guideline's.

Where's the money right now???

I work in an extremely busy mortgage company (not a loan officer, thankfully). Of my ~ 60-70 files right now, most are refinances. However, purchases have heated up due to the government cash back. Also, the FHA 3.5% down FHA purchases are big.

Oh yea, the Fannie to Fannie Refi + and Freddie to Freddie HARP programs are keeping me busy as well.

 

[alkemyst]

Originally posted by: Yukmouth
I've been in mortgage for seven years and unfortunately 3 to five year arms are a thing of the past.

I'm working at the moment, but not in a position I care to be in.

Just wondering if there are any other people involved in mortgage on anandtech and what you're doing now that ARM's are no longer the rave. Purchase's aren't generally that profitable and refi's are a pain a** without NIV doc guideline's.

Where's the money right now???

It wasn't just ARMs that were the problem. A lot of it was due to doing no income/no asset verification on borrowers claiming to be pulling in 300k+ a year and in reality working in a taco bell.

We had a TGIF waiter claiming $10k per month in tip income that he "didn't report" on his taxes. His taxes stated $2x,000 something. We didn't finance him, but another company did.

 

[Yukmouth]

OCGuy ~ You have sixty to seventy active, *closeable* loans right now? I'd imagine you're closing about a third of those each month? What percentage's are broker's getting back on those purchase's and how long have you had the wholesale position if you don't mind me asking?

Alkemyst ~ NIV was the game, more profitable by volume alone .

 

[FelixDeCat]

ARMs will never go away. Theres a sucker born every minute.

 

[alkemyst]

Originally posted by: FelixDeKat
ARMs will never go away. Theres a sucker born every minute.

There is nothing wrong with an adjustable rate mortgage. It's like buying insurance though. You don't always benefit.

The PROBLEM was those doing ARM's that were based on a teaser rate along with being interest only during it. These are the "liar's loans" that we in the business like to call them. The borrowers knew full and well the terms about 99% of the time. Their intentions were to buy and then flip in 2-3 months prior to their payments rising out of their budget range.

Now those same wannabe Donald Trumps are pulling heartstrings and having us bail them out. The main problem with that is most simply don't understand the impact that has to both their own home's value as well as the value of the dollar.

In a declining market an ARM can be a very smart choice vs the costs of refi'ing a couple times on the way down.

We are in a fucked up situation right now we are throwing money left and right at things that are simply irresponsible. The new thing I have read is Student Loans are now forgivable if you go meet certain income requirements and/or your payments extend beyond 25 years.

Today's voter is too fucking emo for their own good.

 

[xSauronx]

Originally posted by: alkemyst


We are in a fucked up situation right now we are throwing money left and right at things that are simply irresponsible.

thats government for you. :-/

The new thing I have read is Student Loans are now forgivable if you go meet certain income requirements and/or your payments extend beyond 25 years.

i thought i heard something like that on the radio or news or something recently. its pretty fucked up.

but then, this is in a country where the government *still* pays farmers not to plant. meh.

 

[OCGuy]

Originally posted by: Yukmouth
OCGuy ~ You have sixty to seventy active, *closeable* loans right now? I'd imagine you're closing about a third of those each month? What percentage's are broker's getting back on those purchase's and how long have you had the wholesale position if you don't mind me asking?

Alkemyst ~ NIV was the game, more profitable by volume alone .

I usually account for closing 1/3 to a little under 1/2 each month. My SO in the same office has a 115+ loan pipe (she has seniority ) Obviously 100% dont end up closing, but most do since they are scrubbed before I ever get them.

I work on the broker side as a processor and correspondent underwriter. Most of my LOs charge .5-1 point origination, and rarely try and make over .25% rebate. In fact, it seems borrowers are willing to pay ~ .5 point discount right now to get into the 4.875-4.99 range.

Fannie Mae had a "verbal only" verification of employment up until last fall. Yes, that was much easier, but it wasnt reality. You can't expect banks to hand over hundreds of thousands of dollars anymore without some verifiable income.

 

[FelixDeCat]

Originally posted by: alkemyst

Originally posted by: FelixDeKat
ARMs will never go away. Theres a sucker born every minute.

There is nothing wrong with an adjustable rate mortgage. It's like buying insurance though. You don't always benefit.

Well, in working with servicing and even helping to develop ARM programs myself over 17 years I can vouch for that statement to an extent. Sure not all ARMS are monsters like those neg am loans (which I always opposed and was almost fired for doing so), but banks and mortgage companies love them. Excluding the investors who used them to speculate on properities, you had your average Joe and Jane Doe who had a 5 or 7 year ARM (or a 7/23 balloon reset loan which I also handled) because the rate was low and they figure they'd move anyway. Turns out they didnt.

Now they have to refi to avoid the rate increase and the bank has a chance to have them pay points on a fixed rate. Thats why we loved making them. And of course *I* personally was the one that had to listen to the mortgagors bitch and moan about their ARM. I had to convince them it wasnt so bad and peak their interest in our Home Loan Center programs if they thought otherwise.

 

[AccruedExpenditure]

Regime Killers 2001