Refinancing proposal for underwater borrowers elicits skepticism Bakersfield Californian
A federal proposal that would make it easier for underwater homeowners to refinance their mortgages is a nice idea, but isn't likely to help Bakersfield's beleaguered houseing market, local real estate experts said Tuesday.
As many as 2 million underwater homeowners could be helped under a bill proposed by senators Barbara Boxer, D-Calif., and Johnny Isakson, R-Georgia, that is now under consideration by the White House.
The Helping Responsible Homeowners Act of 2011, or S.B. 170, would:
⢠Eliminate risk-based fees on loans for which Fannie Mae and Freddie Mac already bear the risk;
⢠Remove refinancing limits on underwater properties;
⢠Make it easier for borrowers with second mortgages to participate in refinancing programs; and
⢠Require that borrowers are able to receive an interest rate comparable to that received by other borrowers in good standing who have not suffered a drop in home value and are current with mortgage payments.
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Los Angeles Mortgage Broker Explains Short Pay Refinance
www.mortgagehelplosangeles.com If the market value of your home is currently less than you owe your bank, AND if you are current in your payments ...
How much does a mortgage broker make of a deal for a home refinance?
How much does a mortgage broker make off a refinance loan? vs How much does a bank employee doing a refinance make off a refi loan? Besides ideal credit scores, what steps can be taken to ensure getting the best possible rate?
Ive been managers at a bank over loan officers. Ive been a loan officer at a bank. We paid our loan officers 50-75% of the Loan Origination Fee. Thats it. Its a high turn over job. The reason being is because they are only working for the bank for free training so they can become a broker or work for a broker.
The company I work for is 100%. I pay them a small fee 250-450 dollars per loan. I just use their name.
So to give you the bank example. The bank will price the loan for approx 1.5% YSP and charge a 1% origination fee. Ill pick on wells fargo. If you work at wells fargo as a loan officer and you are new on a 200,000 loan you will get 1/2 of the origination fee. So you made $1,000.
Where I work, Wells Fargo will pay me as a broker 2% YSP, and I take 1% origination. I would as a broker make $6,000 minus 350 bucks I pay the broker.
Brokers can get better deals then the retail side of the bank offers their own clients. The reason is simple. Banks normally will give better rates to the brokers then to their own loan officers. Ive worked on both sides. The reason is because brokers do 95% of their business.
I have a friend that works at say *Bank A* Large Bank. She is a loan officer at *bank A*. She hasnt trained enough to be on her own. She is working on it. She was doing her own loan and *bank A* was waiving the Origination fee because she worked there. She did it through me, and we took it back to wells fargo. Why? Because I still make 3,000 and she saved 1,000. Even though she worked there. She couldnt even come close with her rate sheet to what I was doing. Same bank.
There is alot you will learn over time.
The norm is around 1% of the price.
When you use a Mortgage broker you get wholesale rates.
Most of the major banks have what's called a WHOLESALE division that deals strictly with mortgage brokers. The rates are usually on average of about 3/4 of a point better. So instead of maybe getting a 7% rate at the local bank branch, you could use a mortgage broker and obtain the same loan through the WHOLESALE division of the same bank at around 6.25% normally.
Now Mortgage Brokers are paid by the borrower on what's called the MORTGAGE BROKERAGE FEE (front end), AND also from the bank on what's called the YIELD SPREAD (back end) which is why you don't normally see that 6.25% example wholesale rate, because the mortgage broker is paid a certain amount for anything over the 6.25% that you agree to. These people who posted before me and are saying Mortgage Brokers only make 1% are WAY OFF, trust me. Banks will usually charge arund 1%, but your paying the retail interest rates. I just obtained my mortgage brokers license and most companies I interviewed with try to make atleast 2-4% on average either in the front or the back of any loan or refinance. I've seen Mortgage Brokers make as much as 7% on loans when I first started as a Real Estate Agent, that's what made me go get the additional Mortgage Broker license.
My personal suggestion would be go to a Mortgage Broker preferably ME :-), but if not that's ok, and tell them you want the PAR rate but you'de be willing to pay them a 2% mortgage brokerage fee to obtain it. The PAR rate means that the Mortgage Broker is NOT receiving a YIELD SPREAD on the backend of the loan from the bank. You will be amazed at the rate you can get and most Mortgage Brokers will do this for you because you'll sound like you know what you're talking about.
So I hope this helps,
Please don't stone me fellow Mortgage Brokers ..lol
Harry J. Misner
888-352-8199 ext #1
What do you do when your mortgage broker lies to you about your refinance?
Working with a mortgage company to refinace my home and the agent keeps telling me not to worry, we will close guarnateed. Now after a month and we still havent closed, we havent made a house payment in 2 months because he told us not to, and now the loan may not close because we are late with the mortgage payment. What do we do?
- Always, always, always, keep your existing loan payments current!
- Your missed payments have probably hurt your credit score too much for the loan he had in mind. Most home loans are bundled together by banks and sold as a block on the secondary market, so they must follow specific Fannie Mae-Freddie Mac guidelines in reqards to credit scores and other qualification issues. Find a local lender that does not package and sell their loans and so does not have to follow these guidelines. A small community bank, for example. Explain to them what happened and they may overlook any recent credit score problems resulting from this situation.
- Report the Mortgage broker to the Better Business Bureau, and the State Real Estate Licensing Board as Mortgage Lenders in most states have to have a Real Estate License.
Good luck!
Use the link below
http://www.ftc.gov/ftc/consumer.htm
I'd consult a lawyer to see what your rights are.
If you have a problem, I would start with the manager in charge of the office of the mortgage broker. If that does not work, contact the agency in your state that licenses mortgage brokers and file a complaint. You can also contact the Better Business Bureau for your area to file a complaint.
In the meantime keep up with all payments on your home. Your home equity is at risk if you don't.
Which bank offers the lowest interest rate for mortgage refinance in California?
I need to refinance my second/investment home in Milpitas California and I'm looking for a mortgage broker or a bank that offers lowest interest rate based on 700 or more fico score. Preferably a loan program with minimum monthly payment is preferred.
find the best rate you can find and then add 1% (1 point is what is the standard to add when dealing with an investment home)
A mortgage broker is supposed to find you the best rate from all the companies she works with. If you don't have a good one shop around.
Here is a website to find the average and best rates:
http://www.bankrate.com/brm/default.asp
Funding for log-style construction vacation home, refinance?
I am a mortgage broker searching for a funding source to refinance a 2nd home in northern California. LTV will be under 75%, credit scores over 700 and full doc. Property is the question, exterior is log cabin style and rock facia. Interior is finished drywall with log style beams in roof and rafters. Loan amount will need to ba jumbo - $550,000. Does not qualify as conforming jumbo. Any thoughts?
brokeroutpost.com- ask in general area all your answers will be givin in seconds.
scottsmanguide.com - get a subscription
stay away from hard money lenders or broker out deals. deal seems simple and easy to close.
http://www.orbitbusinessloans.com/
http://www.orbitmerchantsolutions.com/
I want to broker auto loans from my home office, but have no ideal how to get started... advice, please!?
I currently work in the mortgage financing industry. I would like to be able to refinance my customers auto loans along with their home loans. Many of them do not have the equity to pay their auto loans off and many have rates on them ranging from 18-26%. This would allow me to provide another beneficial service and supplement my income.
Any suggestions on how to get started? Companies that employ auto finance brokers remotely?
Can I be removed from the mortgage I share with my boyfriend?
I have a contract on a home and we're supposed to close in one week. My boyfriend and I are both on the mortgage loan. I tried to get the mortgage broker to switch it to just be in my boyfriend's name, without me involved. Well, he dragged his feet and today told me to do so would take another 21 days which would put us behind on closing and my bf is pressuring me to get over it so we don't have to postpone. So, My question is, if I am on this joint mortgage loan with my bf, and something bad happens between us and I want out of the relationship, what can I do. I've heard I can have my name removed from the loan so that the lender can never come after me for funds in the future? is this true? Is it expensive/complicated? Or is the only option to refinance the mortgage just in his name? What is the process for this? Thanks for any help. I feel stuck between a rock and a hard place. Want to know my options should something go wrong with us... Thanks :)
if you are unsure do not place your name on the note,
if you two where to separate you will still be liable for the note until he refinanced, in today's market, not knowing the terms of your loan, he might not be able to refinance any time soon, then you will be stuck to this guy even thought you are not dating because of the note
To get your name off the mortgage your b/f will need to refinance the mortgage. It will entail going through a lender and getting approved for a new mortgage, paying closing costs, etc. Basically all that you are both going through now.
On a personal note, it sounds like you aren't all that sure of the future for you two. You need to think long and hard about this because if you are on the mortgage note and the relationship goes bad and ends up in a breakup it may not be easy to get him to even go for a new mortgage. If your name is on the title of the property (which it definitely should be if you are going to be financially responsible for the mortgage), you could try and force a sale of the house to get him to either buy you out (forcing a refinance) or force a sale to get you out of the debt.
All they have to do is pull your information out of the file and send it back to the underwriter, which depending on the complexity of their system, can take anywhere from 15 MINUTES to 3 days. It's called "removing a borrower", it does not require originating a new loan, and it's done all day, every day.
If you purchase this home with your boyfriend, and you break up, and if you cannot reach an agreement of who owns the house, your ONLY option, is to seek a legal remedy in court. Neither one of you will be able to sell or refinance without the signature of the other.
With that said, you can't 'sneak' and have his name only on the loan, and don't be suprised if your boyfriend might agree to be on the loan alone and DENY your name on title...after all, your name shouldn't be on the title if you are not married and not on the hook for the loan.
What I think the mortgage broker is doing, is that it almost sounds like that you won't qualify for the loan if only one of you are on it...and that is why he is lying in saying that it will take an additional 21 days.
Now, keep in mind, if BOTH of you are on the sales contract, that is NOT a legal reason to delay the closing, and you can get into some hot water with the sellers if you miss your closing date, especially at this late date.
At the same time, there is no way I would purchase a property with someone that I wasn't related to by blood or marriage...too many legal issues that come up and as an unmarried couple.
Proceed with caution.
YOU ARE responsible for the mortgage payment if you sign. He would have to refinance - and you CAN'T MAKE HIM do that, so if you break up, chances are, he'll just let the house go into foreclosure and you'll BOTH be responsible.
Get your name off NOW or it's never going to happen.
We're talking about 21 days here, it's not a big deal.
Do we have to use 1003 Loan Application when we purchase residential house?
Hi
Year 2006 I purchased house ($625K). I hired mortgage broker and he applied loan for me. BB&T was my lender and loan was approved in 20 days. I put $125K for deposit and got $500K loan. Last year one of my friend told me that BB&T is not a wholesale lender. There must be a loan officer. I was wondering because from the begging to the end I was contacted by my mortgage broker. He was acting like BB&T was a wholesale lender.
I requested full documents from the lender and I reviewed it. When I saw Loan Application I was confused because it was not 1003 Loan Application. It was Bank’s Retail Loan application. I am not sure but I think that retail loan application is for personnel loan, student loan, or home equity loan etc NOT FOR RESIDENTIAL PURCHASE LOAN… * I said I am not sure.
And my loan is-5 years Installment loan- That means I pay $3400 for 59 months and 60th I have to pay about $400K. On settlement day I was out of town and mortgage broker told me that my father could sign the settlement documents if I give him on authorization (Power of attorney). So we did. I believe my father didn’t know what he was signing.
Q.1 They (Lender) don’t have to use 1003 when we apply for residential home loan?
2. Is there any violation that I was not contacted by Bank’s Loan Officer or others from Bank?
3. What do you think about my loan program?
4. Refinancing is my best solution?
P.S. When I applied loan, mortgage broker got all my information on blank paper. He said “I will fill loan application out for you”.
I called mortgage broker….NO ANSWER
Heard rumor that he went to jail.
Thanks.
It sounds like you signed up for a 5 year balloon mortgage which means you need to refinance or come up with 400K to payoff the loan.
I have never seen anyone use anything other than a 1003 for a mortgage application.
If the loan documents that were signed at closing by your father were different from what you agreed to you may have a grievance to file with your local state attorney generals office. Just because you were not there to sign does not excuse the broker from pulling a switch on loan programs.
Added part. I would go for a loan modification.
Modify or refinance.
There is no loan officer in a transaction like yours...there is what they call an "account executive" who handles the contract between BB&T and the broker until it closes and an "assignment of transfer" can be completed...BB&T essentially funds the loan.
A 1003 Loan Application is for MORTGAGE LOANS....this is the standard form that ALL BANKS and brokers are REQUIRED by federal lending regulations to use.
There was no violation...this was a straight forward transaction...unfortunately, you didn't care to be at the closing, because it wasn't that important to you..and sometimes there is a price to pay for that.
Just because you didn't do additional research, doesn't mean anyone did anything illegal.
If you gave your father a Power of Attorney (which must be signed and recorded along with the note), that bears the SAME legal weight as if you were there.
So it doesn't even matter if something changed at the last minute...YOU made the CHOICE not to be there.
You signed a copy of the FINAL loan application at closing and in the initial disclosures that you mailed back...it is a common practice for brokers to fill these out for clients so all they have to do is sign them with information that you supply...when you signed another copy at closing, your signature VERIFIED that you reviewed the document and you signed that it was ACCURATE.
When I owned my own mortgage brokerage...I did this all the time and it's 100% legal.
Sorry...it's not what you want to hear.
I can also tell you by the figures, you got ripped off on that loan.
Should I refinance my home for a lower fixed rate?
I owe 82,383 on my mortgage at 7.25% fixed rate for 30 yrs. My mortgage broker is offering to refinance at 6.25% fixed - conventional loan. Closing costs add up to 5,620.00 which are rolled into the new mortgage of 88,000. It has been stated that I could save about 25,000 over the life of the loan (30 yrs). Currently, My payment is about 866.00, which includes an escrow account for taxes and insurance. I pay 34 dollars extra on the principal and insterest on my monthly payment. any comments? Thanks.
1. How long do you plan to stay in your home?
2. Have you checked around for 30 yr. pricing elsewhere?
3. Have you carefully reviewed your Good Faith Estimate?
4. Have you checked pricing on 15 or 20 year mortgage?
5. Will you recoup your costs within 24 - 30 months?
6. Few people ever stay in a home for 30 years, so you would do better to build equity by getting a 15 year mortgage...you'll save a lot more than the 25K you mentioned.
What Can We Do To Our Mortgage Broker or the Company She Works For?
We bought a home and my husband has a judgement against him that is being garnished out of his check and it is a large judgement. When getting the mortage loan our broker told us that she could get us the loan with no problem because it was being deducted from his paycheck so that is a form of him paying it and that she would also refinance us on our home and now we have found out that she was not suppose to do that and that she altered the loan with the title company and no one else will refinance us with that judgment and she will not return our phone calls and when we go to her office we will see her car outside but they will tell us that she is not in. We are approaching the 2 year mark when our payments will go up and we do not want to sell the house and move because we have 5 children and with that many kids it is hard to find a home to rent. What are my options with this broker?
I don't see how she altered the loan considering the judgement was not on title to the home prior to purchasing it. During the last 2 years, the courts may have put a lien on title. You can prove that payments are being made on a judgement when getting a loan.
It really does not sound like you have a lot of re-course if the courts put the judgement on the home after the fact. That has nothing to do with the broker or the title company.
I need to refinance my home....?
I chose to refinance my home about three years ago, and the mortgage broker told me about this ARM/ interest only loan that was this "wonderful" option... or so she said. My hubby and I did this. Here we are, three years later, trying to get out for this ARM loan and back into a 30 year fixed. I just paid to have the house appraised and I am $25,000 upside down on this house. I have two year before I MUST get the home refinanced, or I get into this fluctuation interest rate situation. I am not sure what to do! I have thoughts of selling the house, but I owe more than it is worth. My hubby said he wants to stop paying on it and let it get foreclosed on. I just don't know what else to try. Any suggestions? Please.
Since you have another 2 years before you have to do anything at all I would sit tight, this should all have corrected itself by then.
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