Posted by Art_MD on 1/14/05 1:00pm
Msg #16744

# of loans that recind

Anyone have a good feel for how many loans recind?
I know of 3 that recinded of the 380 I did in 04. Less than 1%. Am I lucky or is is this average? I see so much on this board about not getting paid or trip fee only on recinded loans. Is this common or just venting over isolated cases?

Art

Reply by Dotti_CA on 1/14/05 1:06pm
Msg #16745

Art, I had 3 that I know of. How do I know? I did the resigns. Dotti

Reply by CaliNotary on 1/14/05 2:22pm
Msg #16763

I think it definitely falls into the venting over isolated cases category. Of course it happens occasionally, but I can't imagine that it's a huge percentage of anybody's business in here.

Reply by Robin_IN on 1/14/05 9:53pm
Msg #16821

I worked at a title company as a Closer for a year and I only saw one time that the loan rescinded. I agree with Cali - definitely "venting over isolated cases category".

Reply by ItsMe123 on 1/14/05 11:31pm
Msg #16831

Also depends one portions of business from certain lenders

Recission is a part of the business and the percentage in which it occurs, most certainly correlates with the type of paper and the lender. A-paper in most cases is going to have a almost non-existent recission rate (or negative correlation for you math nuts while subprime), especially paper that is retail orginiated rather than brokered out wholesale, is going to have a much higher recission rate. If you find yourself with a large percentage of assignments that are orginiated by one of the larger retail subprime lenders you are going to have a much higher rate of recission/trip fees. In this case then I would say no it is not venting if one comments about recission/trip fees.
However, the ratio of recssion/trip fees viewed, perhaps, as negative revenue to what would have come in if the loan did fund should balance out in the end, as one should be negiotating a higher fee structure from sub-prime retail than one would negiotating with A-paper.