All Encompassing Mortgage and Real Estate Thread

[Rusty Shackelford 414]

@UTPhil2006 would you give some insight on what mortgage rates did today?

[Wulaw Horn 19,069]

24 minutes ago, Rusty Shackelford said:

@UTPhil2006 would you give some insight on what mortgage rates did today?

Not Phil but am a broker... most of my pricing was worse today than yesterday- even with MBS having an Incredibly strong morning. My pricing didn’t get better and might have gotten worse. 

Yesterday was a really good day for rates but today sucked relative to MBS market. My bet is that a lot of people locked yesterday (I locked 5 people sitting in line for a refinance to hit a certain rate and I moved 3 resales I’d locked Friday somewhere else. So 8 locks for me in the system. Give you a concrete example

$400 sale- great credit- Friday I locked that at 3.875 with a 175 point yield to me. Monday afternoon I relock at 3.25 and my yield goes up to 187 bips.today- my production partner texts me that MBS are up 90 or 100 points so I go look at that deal to see if I’m moving it again and my pricing is ... 3.375 (worsened) with a yield at 168 bips (worse for me). Well, what sense does that make?  None, if you are just looking at market pricing, but the capacity is stretched thin in the system and there just isn’t much appetite to do any more deals right now for the lenders. 

Also- the non QM market blew up over the weekend (don’t hear much talk about that), but that’s your jumbos, bank statement loan, bad credit, investment property squirrel deals and other stuff. No liquidity. Poof- those guys don’t exist anymore. 

Thats what we’d have been looking at in the entire real estate market if fed hadn’t acted as decisively as they did 

Edited March 24, 2020 by Wulaw Horn

[horn4life 3,760]

I have a question about Expenses on a flip house for tax purposes question?  I am about to get all my crap together and do the tax work on my first sold investment property.  I have never done this before and wanted to have somebody tell me I am doing this correctly.  The way I plan on doing it is simply adding all my expenses over the 18 months I owned the place and deduct them off the sale price, sold August 2019.  A lot of the expenses occurred in 2018, but I assume they can only be expensed against revenue. 

Second question  somewhat more normal -   We have only been looking at fixer uppers and we are considering selling our homestead and moving into a home about the same price that we think we could improve and probably put $100K+ in equity into the place with the remodel. 

My assumption is that fixer uppers are going to be harder and harder to move in Austin?  This is because My guess is a lot of the cash buyers may soon be holding their cash for liquidity, and simply because of the unpredictability of the speculative market?  So do you or do you not think there may be less competition for fixer uppers.  

[Rusty Shackelford 414]

Not Phil but am a broker... most of my pricing was worse today than yesterday- even with MBS having an Incredibly strong morning. My pricing didn’t get better and might have gotten worse. 
Yesterday was a really good day for rates but today sucked relative to MBS market. My bet is that a lot of people locked yesterday (I locked 5 people sitting in line for a refinance to hit a certain rate and I moved 3 resales I’d locked Friday somewhere else. So 8 locks for me in the system. Give you a concrete example
$400 sale- great credit- Friday I locked that at 3.875 with a 175 point yield to me. Monday afternoon I relock at 3.25 and my yield goes up to 187 bips.today- my production partner texts me that MBS are up 90 or 100 points so I go look at that deal to see if I’m moving it again and my pricing is ... 3.375 (worsened) with a yield at 168 bips (worse for me). Well, what sense does that make?  None, if you are just looking at market pricing, but the capacity is stretched thin in the system and there just isn’t much appetite to do any more deals right now for the lenders. 
Also- the non QM market blew up over the weekend (don’t hear much talk about that), but that’s your jumbos, bank statement loan, bad credit, investment property squirrel deals and other stuff. No liquidity. Poof- those guys don’t exist anymore. 
Thats what we’d have been looking at in the entire real estate market if fed hadn’t acted as decisively as they did 

Great stuff, thanks for the knowledge. Do you think the 10 yr had anything to do with it, since it went the other way from MBS?

[Wulaw Horn 19,069]

37 minutes ago, Rusty Shackelford said:

Great stuff, thanks for the knowledge. Do you think the 10 yr had anything to do with it, since it went the other way from MBS?

I didn’t see 10 year. It went from what (opening) to what (closing)?  10 year Going down (in yield) means MBS should be up. Most of the time works that way. 

[UTPhil2006 3,807]

1 hour ago, Rusty Shackelford said:

@UTPhil2006 would you give some insight on what mortgage rates did today?

Got worse today compared to yesterday. Every day is a learning curve as to what lender by lender wants to do and has the ability to do. As mentioned above non QM loans and companies are falling by the wayside. Angel Oak (fringe lender) suspended all loans regardless of status yesterday, but other stronger normal lenders had very strong 30 years. There are still good rates for strong borrowers but like has been mentioned morning to afternoon or even hour to hour things can change. The secondary market has really kind of changed how MBS and the 10 year play into rates as that is what is controlling what lenders can and can’t do. 

[UTPhil2006 3,807]

Here’s good info from our rep at Flagstar that explains what’s going on from their side of things..

”to clarify what you are seeing on Flagstar’s and other investors rates from hour to hour.  We are all trying to manager multiple risks to our Bank/Companies in this fluid and unpredictable market.  The usual rules and fundamentals that we all have been used to, no longer apply in today’s interest rate market!   Flagstar and other lenders are trying to manage operational capacity, loan run off, Pre-Pay speeds, margin calls etc.…..  What you saw yesterday afternoon was my capital markets group (lock desk) lowered rates mid-afternoon and watched the lock volume come in very very quickly.  Within about 2 hours, we saw roughly $400 to $500 million in locks come in.  It was at that point that they dialed rates back up in order to slow the lock volume ,down  This is a necessity in order to not completely tank our operations and turn time execution. “

[hornbri 1,397]

We listed a house two weeks ago we were renting out, got multiple offers and got a buyer through, they backed out last weekend but at least they released the earnest money to us. Now we have to relist and I worried the market has shifted dramatically. (In cedar park)

[Your Mom 4,805]

Buyer backed out of mine last week.  Put it back on the market today, had 3 showings today.   Got 2 offers and waiting for the 3rd they say is on the way.  One was a lowball, the other is 5k above asking and almost identical to the one I accepted 3 weeks ago that backed out.  There's still people out there willing to pay last week's prices.  This is in Austin.

[Rusty Shackelford 414]

I didn’t see 10 year. It went from what (opening) to what (closing)?  10 year Going down (in yield) means MBS should be up. Most of the time works that way. 

I can’t pull up the chart rn, but the 10 year bonds went lower from open to close (yields went up) while MBS also went up. Fed stepping in the purchase MBS obviously is detaching mortgage rates from fundamentals.

[bluto 4,916]

My realtor checked on the buyer agent today, said everything is a go still. Option period expires Sat

[Wulaw Horn 19,069]

52 minutes ago, Rusty Shackelford said:

I can’t pull up the chart rn, but the 10 year bonds went lower from open to close (yields went up) while MBS also went up. Fed stepping in the purchase MBS obviously is detaching mortgage rates from fundamentals.

Yes- fed is not going to let MBS fail/ crater. They want the housing market as strong as possible to stall of serious damage. If people have jobs that will work. If not... nothing gonna save this. 

MBS closed at an all time high today- and my pricing was 1/4 worse than it was 2 months ago and 3/4 or so worse than it was 3 weeks ago. 

Everything Phil posted in his explanation from his flagstar rep is dead on balls accurate. 

[Rusty Shackelford 414]

Saw this on bloomberg:

Mortgage Bonds Rattle Wall Street Anew With Invesco Joining Pain

Shahien Nasiripour
Invesco Mortgage Capital says it can’t meet margin calls

The $16 trillion U.S. mortgage market -- epicenter of the last global financial crisis -- is suddenly experiencing its worst turmoil in more than a decade, setting off alarms across the financial industry and prompting the Federal Reserve to intervene.

Unlike last time, risky mortgages aren’t the cause. Instead, the coronavirus pandemic is threatening to make good loans go bad -- and simultaneously sapping the market’s funding. There are fears that government efforts to shore up borrowers and financing won’t be enough and that mortgage and property investors again face massive losses.

Measures to slow the spread of the deadly disease are slamming the brakes on commerce, threatening to prevent companies from making payments on their leases and commercial mortgages. Companies are also firing employees, who won’t be able to keep up on their own rents and home loans. Mortgage industry veterans warn of a cascade of defaults.

At the same time, holders of mortgage-backed securities are fielding redemption requests from clients, margin calls from jittery counterparties and drops in their valuations, forcing the funds to solicit offers on billions in assets in emergency sales over the weekend. The pain continued Tuesday with Invesco Mortgage Capital Inc., a real estate investment trust that invests in mortgage-backed securities, also saying it’s no longer able to fund margin calls. If forced sales accelerate, bond prices could fall and put pressure on other investors to mark down or sell their holdings too.

The tensions are flaring up in myriad ways across the property market -- boosting interest rates for home loans last week, leading listing companies such as Zillow Group Inc. to suspend buying programs and prompting industry players from real estate brokers to mall owners to plead directly to President Donald Trump for relief.

In one of the most dire warnings, real estate investor Tom Barrack said Monday that the U.S. commercial-mortgage market is on the brink of collapse and predicted a “domino effect” of consequences if banks and the government don’t take prompt action to keep borrowers from defaulting.

“You have to support the employers” so they can keep paying their rents and employees, he said. “When commerce stops and they can’t pay rent and they can’t pay interest on the debt, and then the banks and the intermediaries can’t pay their investors, it all collapses.”

Groups including the American Bankers Association, the Mortgage Bankers Association and the Housing Policy Council sent federal agencies a list of proposals aimed at homeowners affected by illness or quarantine that results in a loss of income. The groups asked the federal government for financing to cover missed payments.

Negotiations between lawmakers and the Trump administration to prop up households and the economy with a roughly $2 trillion relief package keep stalling. Among the demands, Democrats are insisting on restrictions for corporate bailouts and stronger protections for workers.

The Fed, in a surprise announcement early Monday, said it’s buying unlimited amounts of Treasury bonds and mortgage securities to keep borrowing costs low. It also set up programs to ensure more credit flows to businesses of all sizes and state and local governments.

Read more: Fed sidesteps Congress’s bickering with sweeping rescue plan

But that effort has limits. For example, the central bank is focusing on securities consisting of so-called agency home loans and commercial mortgages that were created with help from the federal government.

There are about $10 trillion of U.S. mortgage-backed securities, of which about 14% don’t meet that criteria, according to the Securities Industry and Financial Markets Association. And when that tally of securities is compared to the Fed’s of about $16 trillion in total U.S. mortgages, the central bank’s announcement suggests that roughly half of all property loans will be eligible for purchase.

Flagstar Bancorp, one of the nation’s biggest lenders to mortgage providers, said Friday it stopped funding most new home loans without government backing. Other so-called warehouse lenders are tightening terms of financing to mortgage providers, either raising costs or refusing to support certain types of home loans. One prominent mortgage funder, Angel Oak Mortgage Solutions, said Monday it’s even pausing all loan activity for two weeks. It blamed an “inability to appropriately evaluate credit risk.”

Also retreating: A new generation of sophisticated home flippers, who use data and debt to buy and sell homes in quick order. Zillow said Monday it has stopped purchasing homes, following rivals SoftBank-backed Opendoor and Redfin Corp. “No one can say what a fair price is right now, so we’re not making any instant offers,” Redfin Chief Executive Officer Glenn Kelman said last week.

Interest Rates Up

Banks are facing pressures that will make it hard for them to step in by making or purchasing mortgages others are dumping. Corporate borrowers have been drawing down credit lines at banks, siphoning off cash and raising the prospect that the lenders will eventually incur losses.

It all means households are being charged mortgage rates far above where they ought to be, with no end in sight, said Jeremy Sopko, co-founder and CEO of Nations Lending Corp. Even broker-dealers, whose job is to match buyers and sellers, are uncertain, “and they’re normally the guys who have their pencils sharpened the tightest,” he said.

Interest rates on traditional 30-year fixed-rate mortgages typically follow yields on the 10-year Treasury note, a benchmark that helps determine the cost of borrowing throughout the U.S. economy. But this month the gap between the two is set to reach a record, according to monthly data compiled by Bloomberg dating to 1998, in a show of how tumult in markets impacts what the average American has to pay on a mortgage.

For Wall Street, the moment that crystallized the extent of problems in mortgage markets came Sunday, when some firms rushed to raise cash by requesting offers for their bonds backed by home loans. Eager sellers included investor AlphaCentric Income Opportunities Fund and Annaly Capital Management Inc., a mortgage REIT.

Such solicitations are known as “bids wanted in competition,” or BWIC.

“I ran dealer desks for over 20 years,” said Eric Rosen, who oversaw credit trading at JPMorgan Chase & Co., ticking off the collapse of Long-Term Capital Management, the bursting of the dot-com bubble some 20 years ago, and the 2008 global financial crisis. “And I never recall a BWIC on a weekend.”

Then on Monday, mortgage fund AG Mortgage Investment Trust Inc. said it failed to meet some margin calls on Friday and doesn’t expect to be able to meet future margin calls with its current financing. And TPG RE Finance Trust Inc., which focuses on commercial real estate debt, said it’s starting talks with lenders because of uncertainty about meeting future margin calls.

“The Fed is going to do whatever it takes to restore normal functioning in the market,” said Karen Dynan, a Harvard University economics professor who formerly worked as a Fed economist and senior official at the Treasury Department. “But we need to remember that the root of the problem is that financial institutions and investors are desperately seeking cash, so in that sense the Fed’s announcement is not everything that needs to be done.”

Edited March 25, 2020 by Rusty Shackelford

[UTPhil2006 3,807]

Hopefully the stimulus package provides some normalcy to the market

[msucolt45 4,057]

I was able to lock-in today
Told the wife (no pics) that we’re rolling the dice! I really wanted to wait this out, but financially it was a deal to hard to pass up.

This COVID-19 situation needs to end so everyone can start getting back as close to normal as possible. Hook’em!

[msucolt45 4,057]

I was able to get less than 4.0% (30years).
I don’t know why that part was deleted from my previous post.

[Wulaw Horn 19,069]

10 hours ago, UTPhil2006 said:

Hopefully the stimulus package provides some normalcy to the market

From your lips to gods ears. 

[LCHorn 2,616]

Re: Rusty’s article-yeah, servicing rights are basically worthless at the moment.  
 

There’s probably some permanent structural changes coming out of this.  Quicken, for example, isn’t allowing locks until the loan is CTC and I bet other lenders follow suit.  Lenders with big hedge operations are getting eaten alive.  
 

I said in a previous post that I think more than a few lenders are going out of business and I bet that gets accelerated.  I’d also be worried if I was a broker.  This reminds me a lot of 2008, absent the fact we (as an industry) didn’t do this to ourselves.  

[Wulaw Horn 19,069]

9 minutes ago, LCHorn said:

Re: Rusty’s article-yeah, servicing rights are basically worthless at the moment.  
 

There’s probably some permanent structural changes coming out of this.  Quicken, for example, isn’t allowing locks until the loan is CTC and I bet other lenders follow suit.  Lenders with big hedge operations are getting eaten alive.  
 

I said in a previous post that I think more than a few lenders are going out of business and I bet that gets accelerated.  I’d also be worried if I was a broker.  This reminds me a lot of 2008, absent the fact we (as an industry) didn’t do this to ourselves.  

I heard that on quicken and was floored. Ok so let me get this straight- I send my file to you and can’t tell my buyer/borrower their rate, and then when we get all the way to the closing table you will give me whatever rate you want to on that particular day?  Couldn’t be a harder pass. 

 

As for the brokers being in trouble I have absolutely positively no fear (maybe famous last words) of that being the case. 

Just not even slightly concerned for my job or way of doing it. Maybe I’m an idiot, maybe I’m wrong, but I’m always on the look at for things to freak out about that are possible existential threats to my being and I don’t see it at all. I’m sure some will go bust over this, but your flagstar, freedom, caliber etc’s if the world will be fine. 

If I had to bet on somebody blowing up out of this it would be UWM. I don’t consider small shops blowing up to be a thing. Sure it might happen but if you don’t have any market share why should I care? 

[Horns99 155]

So are those of us looking for jumbo mortgage in the near future basically SOL ? Even with great credit scores


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[Wulaw Horn 19,069]

3 minutes ago, Horns99 said:

So are those of us looking for jumbo mortgage in the near future basically SOL ? Even with great credit scores


Sent from my iPhone using Tapatalk

From a broker perspective yeah- I think it looks that way. Wells Fargo type deal now. Maybe some bigger regional banks. My guess is they underwrite the shit out of them. 

We might see high balance loans up to $700k or so in Texas now- they’ve been doing that I’m California forever and I think they go up into the mid $800’s there. Guideline type underwriting with a half point kicker I’m interest rate. That’s a ways down the road. 

Who knows what the future holds but for now if it ain’t a Fannie, Freddie, Ginnie product it is probably frozen/illiquid.  

[KeysPhoneWallet 807]

So it is a bad time to refinance right now bc nobody wants the mortgages? And rates aren’t as low as one would think based on the recent drops in 10yrs?


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[UT_OB1 2,218]

2 hours ago, Wulaw Horn said:

I heard that on quicken and was floored. Ok so let me get this straight- I send my file to you and can’t tell my buyer/borrower their rate, and then when we get all the way to the closing table you will give me whatever rate you want to on that particular day?  Couldn’t be a harder pass. 

 

As for the brokers being in trouble I have absolutely positively no fear (maybe famous last words) of that being the case. 

Just not even slightly concerned for my job or way of doing it. Maybe I’m an idiot, maybe I’m wrong, but I’m always on the look at for things to freak out about that are possible existential threats to my being and I don’t see it at all. I’m sure some will go bust over this, but your flagstar, freedom, caliber etc’s if the world will be fine. 

If I had to bet on somebody blowing up out of this it would be UWM. I don’t consider small shops blowing up to be a thing. Sure it might happen but if you don’t have any market share why should I care? 

In small easy to understand terms, why would UWM be in danger of blowing up?  And, as someone who just refi’d using them 2 weeks ago, would that impact me at all?  

[Wulaw Horn 19,069]

1 hour ago, UT_OB1 said:

In small easy to understand terms, why would UWM be in danger of blowing up?  And, as someone who just refi’d using them 2 weeks ago, would that impact me at all?  

No impact to you- no. Someone else would just service your loan. 

I’m basing this under nothing more than a hunch as to the sense I get interacting with my AE, how aggressive they are looking for volume and a couple little tidbits I’ve heard on them getting stuck keeping some paper in a bad time that they ought to have unloaded. 

Its based upon nothing other than a WAG

[Wulaw Horn 19,069]

2 hours ago, KeysPhoneWallet said:

So it is a bad time to refinance right now bc nobody wants the mortgages? And rates aren’t as low as one would think based on the recent drops in 10yrs?


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Bad time?  Not really. Rates are really good.  Rates not as low as one would think based upon the 10 year?  Or MBS?  Absolutely the case. 

[LCHorn 2,616]

2 hours ago, Horns99 said:

So are those of us looking for jumbo mortgage in the near future basically SOL ? Even with great credit scores


Sent from my iPhone using Tapatalk

You're most likely going to have less options that a few weeks ago (which means it'll be more expensive).  Underwriting is going to be much stricter.  Non-QM is gone for the foreseeable future so it's going to limit the self-employed who don't like to pay taxes.  I'd imagine a lot of jumbo lenders are going to be less competitive on fixed rate mortgages and more so on ARM's (but that's not a huge change from the present). 

2 hours ago, KeysPhoneWallet said:

So it is a bad time to refinance right now bc nobody wants the mortgages? And rates aren’t as low as one would think based on the recent drops in 10yrs?


Sent from my iPhone using Tapatalk Pro

There's little to no relationship between rates and Treasury notes at present.  There's only some relationship between rates and MBS pricing. 

Now is a great time to refinance, but it's not as good as two weeks ago and there's just of a ton of uncertainty.  It could be that faith is restored in the secondary market and rates improve, or there could be a cascade of problems resulting from forbearance concerns and rates jump.  The short answer is if you like the way we've done business over the past decade (lock the rate and forget about it) then you need to refinance now. 

1 hour ago, UT_OB1 said:

In small easy to understand terms, why would UWM be in danger of blowing up?  And, as someone who just refi’d using them 2 weeks ago, would that impact me at all?  

I don't know anything about UWM but lenders with large servicing portfolios not backed by deposits are going to be in for some short-term pain and probably need Fed help to not drown. 

Main impact to you is you might see your note sold a few times; you'll need to stay on top of where your money is going so you don't have a payment accidentally missed.  Otherwise, nothing to worry about on the consumer side. 

[Wulaw Horn 19,069]

3 minutes ago, LCHorn said:

You're most likely going to have less options that a few weeks ago (which means it'll be more expensive).  Underwriting is going to be much stricter.  Non-QM is gone for the foreseeable future so it's going to limit the self-employed who don't like to pay taxes.  I'd imagine a lot of jumbo lenders are going to be less competitive on fixed rate mortgages and more so on ARM's (but that's not a huge change from the present). 

There's little to no relationship between rates and Treasury notes at present.  There's only some relationship between rates and MBS pricing. 

Now is a great time to refinance, but it's not as good as two weeks ago and there's just of a ton of uncertainty.  It could be that faith is restored in the secondary market and rates improve, or there could be a cascade of problems resulting from forbearance concerns and rates jump.  The short answer is if you like the way we've done business over the past decade (lock the rate and forget about it) then you need to refinance now. 

I don't know anything about UWM but lenders with large servicing portfolios not backed by deposits are going to be in for some short-term pain and probably need Fed help to not drown. 

Main impact to you is you might see your note sold a few times; you'll need to stay on top of where your money is going so you don't have a payment accidentally missed.  Otherwise, nothing to worry about on the consumer side. 

This is a great post. I’m not near as bearish as you, but I could see a world where my shop goes from 15 servicers to 7 or something like they. 

Edited March 26, 2020 by Wulaw Horn

[LCHorn 2,616]

4 minutes ago, Wulaw Horn said:

This is a great post. I’m not near as bearish as you, but I could see a world where my shop goes from 15 services to 7 or something like they. 

Thanks--my Dad was president of the Texas Association of Mortgage Brokers back when I was in undergrad and I've long-held interest in the viability of the small-shop broker business (the world is just a lot less interesting if the big bank cartel makes all the money). 

[UTPhil2006 3,807]

 9 hours ago, UT_OB1 said:

In small easy to understand terms, why would UWM be in danger of blowing up?  And, as someone who just refi’d using them 2 weeks ago, would that impact me at all?  

They're not.  If anything they're in a strong position to take over the #1 spot from Quicken.

 11 hours ago, KeysPhoneWallet said:

So it is a bad time to refinance right now bc nobody wants the mortgages? And rates aren’t as low as one would think based on the recent drops in 10yrs?


Sent from my iPhone using Tapatalk Pro

Still a very good time to refinance, especially if it's just a simple rate and term and on a 30.  Good credit and below 80% LTV even better.

 11 hours ago, Horns99 said:

So are those of us looking for jumbo mortgage in the near future basically SOL ? Even with great credit scores


Sent from my iPhone using Tapatalk

Conventional High Balance is gonna be what you're looking for.  And better than Jumbo's anyway.

 12 hours ago, Wulaw Horn said:

I heard that on quicken and was floored. Ok so let me get this straight- I send my file to you and can’t tell my buyer/borrower their rate, and then when we get all the way to the closing table you will give me whatever rate you want to on that particular day?  Couldn’t be a harder pass. 

 

As for the brokers being in trouble I have absolutely positively no fear (maybe famous last words) of that being the case. 

Just not even slightly concerned for my job or way of doing it. Maybe I’m an idiot, maybe I’m wrong, but I’m always on the look at for things to freak out about that are possible existential threats to my being and I don’t see it at all. I’m sure some will go bust over this, but your flagstar, freedom, caliber etc’s if the world will be fine. 

If I had to bet on somebody blowing up out of this it would be UWM. I don’t consider small shops blowing up to be a thing. Sure it might happen but if you don’t have any market share why should I care? 

Yeah that wouldn't fly with 90% of my borrowers on Rate.  Another reason I'd like to see Quicken fail.

12 hours ago, LCHorn said:

Re: Rusty’s article-yeah, servicing rights are basically worthless at the moment.  
 

There’s probably some permanent structural changes coming out of this.  Quicken, for example, isn’t allowing locks until the loan is CTC and I bet other lenders follow suit.  Lenders with big hedge operations are getting eaten alive.  
 

I said in a previous post that I think more than a few lenders are going out of business and I bet that gets accelerated.  I’d also be worried if I was a broker.  This reminds me a lot of 2008, absent the fact we (as an industry) didn’t do this to ourselves.  

F Quicken.  Contrary to Wulaw's post, I'd love to see UWM take over the number 1 spot.  They've been doing this well, I've been very happy with them, Mat Ishbia is a great CEO and very transparent, etc.  As far as our broker shop, I'm not worried at all but as can be seen that can change when all else seems rosy

[Wulaw Horn 19,069]

1 hour ago, UTPhil2006 said:

They're not.  If anything they're in a strong position to take over the #1 spot from Quicken.

Still a very good time to refinance, especially if it's just a simple rate and term and on a 30.  Good credit and below 80% LTV even better.

Conventional High Balance is gonna be what you're looking for.  And better than Jumbo's anyway.

Yeah that wouldn't fly with 90% of my borrowers on Rate.  Another reason I'd like to see Quicken fail.

F Quicken.  Contrary to Wulaw's post, I'd love to see UWM take over the number 1 spot.  They've been doing this well, I've been very happy with them, Mat Ishbia is a great CEO and very transparent, etc.  As far as our broker shop, I'm not worried at all but as can be seen that can change when all else seems rosy

I said I’m placing a bet on UWM being most likely to blow up merely as a hunch- nothing more. It’s highly possible that I’ve gotten that impression by other account reps that might be jealous or maybe they’ve got a paradigm that’s better and everyone else is sucking wind. It’s literally a WAG on my part and I’m hopeful that’s made clear now for non industry types. We can compare notes in 6 months either way. LC’s got all of us blown up as a broker model (no wholesalers he’s saying would be his reason for that) Ive got a significant number of places closed (but still robust broker corner of the market) and you’ve got UWM as the number one shop hopefully. 

Couldnt agree more about Quicken. Their practices disgust me in many ways as being anti for the good of the consumer. Can’t tell you how many gfe’s Ive gotten from them where they are charging major amounts of points for essentially a market

rate for me- on first time homebuyer stuff- so they can give the lowest rate. The customer Doesn’t know what they don’t know, and when you explain that to them they get pissed. It’s bad for the industry imo to take advantage of people or trick people into a deal that doesn’t work for them. I will dance a jig if they blow up. 

[HookEm 2,467]

We have a jumbo locked in at 3.625 with Chase.  Supposed to close on 4/23, but our broker is recommending that we move it up to ASAP.

[UTPhil2006 3,807]

1 hour ago, HookEm said:

We have a jumbo locked in at 3.625 with Chase.  Supposed to close on 4/23, but our broker is recommending that we move it up to ASAP.

Probably not the worst idea if possible.

[Storm the Field 5,294]

Got probably 4-5 months of construction left on my new house (assuming no further restrictions or contractors getting sick). Also gonna need to sell the existing one at some point mid to late Summer. Interesting times ahead.

Edited March 26, 2020 by Storm the Field

[LCHorn 2,616]

Our CEO is expecting Redwood and PennyMac to go under soon.  That's two more jumbo lenders out of the market place. 

Echoing Phil--if you have a jumbo loan that's currently being worked on and/or looking to refi soon you'd better get on it.

Quicken's probably too big to fail at this point, but I said the same thing about Countrywide. 

[UTPhil2006 3,807]

As long as Quicken loses more market share to up and coming UWM I'm happy

[UTPhil2006 3,807]

Dow up 1300, 10 year down .05.  One of our lenders today went to you can only lock only once you're out of Underwriting, which i suspect from some of the lower level outfits, become somewhat of a trend.  I don't like it, but I'm guessing they got filled up on all they could handle last week when they were considerably lower than everyone else, so this is their way of stifling future loans for the time being. 

Such is the new norm for now, juggling lenders and who can handle it/offer the best rate.

[Gil Bang 25,944]

21 hours ago, Wulaw Horn said:

From a broker perspective yeah- I think it looks that way. Wells Fargo type deal now. Maybe some bigger regional banks. My guess is they underwrite the shit out of them. 

We might see high balance loans up to $700k or so in Texas now- they’ve been doing that I’m California forever and I think they go up into the mid $800’s there. Guideline type underwriting with a half point kicker I’m interest rate. That’s a ways down the road. 

Who knows what the future holds but for now if it ain’t a Fannie, Freddie, Ginnie product it is probably frozen/illiquid.  

Conforming is up to around 765,000 in Los Angeles, a shade over 700,000 in San Diego.

[Gil Bang 25,944]

I've got exactly 1 deal in escrow.  The other agent (he's got the buyer) has been in the business 60 years.  

60 years.

He's convinced that rates will go down into the 1's in the next month.  He spent several minutes telling me that.   I asked him if he wanted to wager our commission on this deal.  He declined.  

[Wulaw Horn 19,069]

7 hours ago, HookEm said:

We have a jumbo locked in at 3.625 with Chase.  Supposed to close on 4/23, but our broker is recommending that we move it up to ASAP.

Absolutely. 

[Wulaw Horn 19,069]

4 hours ago, LCHorn said:

Our CEO is expecting Redwood and PennyMac to go under soon.  That's two more jumbo lenders out of the market place. 

Echoing Phil--if you have a jumbo loan that's currently being worked on and/or looking to refi soon you'd better get on it.

Quicken's probably too big to fail at this point, but I said the same thing about Countrywide. 

Redwood pulled one CTC on me the other day that should have closed this week. I was slightly less than happy. Was sort of glad to see all the other trouble so i didn’t stand out as picking a janky company. 

[Wulaw Horn 19,069]

11 minutes ago, Gil Bang said:

Conforming is up to around 765,000 in Los Angeles, a shade over 700,000 in San Diego.

Nice. What’s high balance?  

[Wulaw Horn 19,069]

8 minutes ago, Gil Bang said:

I've got exactly 1 deal in escrow.  The other agent (he's got the buyer) has been in the business 60 years.  

60 years.

He's convinced that rates will go down into the 1's in the next month.  He spent several minutes telling me that.   I asked him if he wanted to wager our commission on this deal.  He declined.  

Honestly I don’t think rates could ever get into the ones. I think there’s probably 2.0-2.25 points built into the overhead of the money guys and the brokers and servicers. I honestly can’t see anything lower than around 2.5 on a 30 and 2 on a 15. And I think that what we are conclusively proving in this boom is it’s not even possible to get that low without crashing for the entire system. 

Maybe I’m wrong and we do see 1’s in our lifetime but I’d be surprised. I will literally I on record that it’s impossible in a month. 

[UTPhil2006 3,807]

11 hours ago, Gil Bang said:

I've got exactly 1 deal in escrow.  The other agent (he's got the buyer) has been in the business 60 years.  

60 years.

He's convinced that rates will go down into the 1's in the next month.  He spent several minutes telling me that.   I asked him if he wanted to wager our commission on this deal.  He declined.  

I just don't see any way that happens.  And like I've been telling people, if it does get that far down for whatever reason, your home loan/refi will be the least of your concerns

[horncyclist 1,387]

Things are moving along with my 3.625 cash out refi. Broker I had reached out to before locking and then took a week to get back to me thinks rates will go lower. I'm in underwriting and already did an appraisal. I shouldn't even bother right? There's no telling what's going to happen, no? I also had an assurance from the lender that if rates are lower after I'm approved they could float down. 

 

[UTPhil2006 3,807]

38 minutes ago, horncyclist said:

Things are moving along with my 3.625 cash out refi. Broker I had reached out to before locking and then took a week to get back to me thinks rates will go lower. I'm in underwriting and already did an appraisal. I shouldn't even bother right? There's no telling what's going to happen, no? I also had an assurance from the lender that if rates are lower after I'm approved they could float down. 

 

Yeah no real reason to go back to broker

[ZB'Tejas 593]

21 hours ago, HookEm said:

We have a jumbo locked in at 3.625 with Chase.  Supposed to close on 4/23, but our broker is recommending that we move it up to ASAP.

Nice deal here. I'm on the fence here but am starting to look around. Is this a fixed 30 year?

[MonkeyDoughnut 10,233]

If you haven't tried some of the local credit unions, they were easily beating the bigger bank offers I saw.

I went with TDECU, locked two weeks ago on the dip and rates are back down in that area. I got a 15yr cash out refi @ 2.75

They have also been way, way more responsive that trying to refi with my current bank. I applied with Wells Fargo 3 weeks ago and have only gotten email that they will call me.... no other contact (20+ year Wells customer)

https://www.tdecu.org/rates/

Edited March 27, 2020 by MonkeyDoughnut

[UTPhil2006 3,807]

1 hour ago, MonkeyDoughnut said:

If you haven't tried some of the local credit unions, they were easily beating the bigger bank offers I saw.

I went with TDECU, locked two weeks ago on the dip and rates are back down in that area. I got a 15yr cash out refi @ 2.75

They have also been way, way more responsive that trying to refi with my current bank. I applied with Wells Fargo 3 weeks ago and have only gotten email that they will call me.... no other contact (20+ year Wells customer)

https://www.tdecu.org/rates/

Ya Wells Fargo, etc lenders haven't before, and likely still don't care enough.  Just a number in a system to them.

[HookEm 2,467]

Nice deal here. I'm on the fence here but am starting to look around. Is this a fixed 30 year?

Yeah, 30 yr fixed. Hopefully it will hold up.

[Tailgate 3,021]

PLEASE HELP. My tenants organized and are saying they won't pay rent this month. ALL OF THEM. What can I do?

Someone please tell me this is going to be ok, I have no idea what to do. I own an apartment building in Houston with 32 units. This is my SOLE source of income. Tenants have apparently been talking to each other, and this morning they delivered a letter signed by EVERY SINGLE UNIT saying they will not be paying rent for April, and will continue refusing to pay rent this until the coronavirus is over and they can go back to work.

Um....wtf am I supposed to do? I can't possibly evict all of them at once, and especially right now how am I even going to find new tenants if everyone is out of work? Is this illegal? What do I do, someone please give me advice I am seriously freaking out over here.

\[uPDATE\] Thanks for your input everybody. I did not expect so many responses and I have to take a break from reading and writing back. I scheduled a video chat with a lawyer that starts soon, so I'll update again later today. And someone thought this was fake, so I will ask her if I'm allowed to post the letter from the tenants if I cross the names out.