Posted by Christine Gardner on 2/26/07 10:06am
Msg #177177

Cancellations Galore

Wow, this past week I've had 5 cancellations. I should have been in a purchase transaction as we speak, but title still hasn't received docs. Have a feeling this one will go belly up as well. This is crazy - just had to vent!!

Reply by Charm_AL on 2/26/07 10:14am
Msg #177179

one of the benes! Free roller coaster rides
Pretty soon, you'll be able to do sit ups without moving

Reply by Calnotary on 2/26/07 11:18am
Msg #177194

I have 5 printed loans that are on hold. I was told to hold it for a while, I will be notified as soon as they fixed some "issues".

Reply by Glenn Strickler on 2/26/07 10:41am
Msg #177187

Record month for cancellations for me ........ n/m

Reply by cntrlcalntry on 2/26/07 11:03am
Msg #177191

Re: Same Here! n/m

Reply by LauriecPA on 2/26/07 11:36am
Msg #177199

Re: Here, too! n/m

Reply by MB_AZ on 2/26/07 11:42am
Msg #177201

Re: Here, too!

I wonder if the cancellations are due to the crackdown on the mortgage industry. Arizona Department of Financial Institutions just shut down a mtg co here last week for shady loan practices. They are reviewing lending practices here, as I'm sure they are in other states as well.

http://www.azcentral.com/news/articles/0225mortgageshutdown0225.html

Reply by Glenn Strickler on 2/26/07 12:06pm
Msg #177204

Re: Here, too!

Perhaps some of that, also, the consumers that are in the market right now seem to be a little more savvy and are putting up with a lot less BS from the LO's.

Reply by MB_AZ on 2/26/07 12:17pm
Msg #177206

Re: Here, too!

I tend to get desperate, confused borrowers not the savvy ones. I had a signing Friday where she needed to sign the adjustable rate note. She said, "I was told it was fixed." She called her LO and the LO said "Yes, it is fixed for the first 3 yrs" borrower said "Oh, I understand now...ok." My stomach turned to knots. She was a desperate borrower...needing to pay her delinquent property taxes.

Reply by JanetK_CA on 2/26/07 4:46pm
Msg #177246

An ongoing trend?

Sometimes that "fixed" vs. "adjustable" confusion is a combination of selective listening on the borrowers part and less than frank disclosure on the LO's part. I can't count how many times I've encountered that situation. It never feels good...

My personal opinion on the cancellation numbers is that it is likely to be an ongoing trend. I, too, seem to be seeing a higher percentage of "desperate" borrowers, along with an increasing number who are trying to get out of various types of ARMs. Also, it seems to be the equivalent of a buyers' market in the lending business, too, to some extent. LOs are increasingly having to scramble harder to find clients who, in turn, seem to be shopping around a bit more. And for years, borrowers have been hearing about how low interest rates are, so they can be hesitant to just accept the slightly higher rates we're seeing now. I imagine this will be going on for quite some time.

Just like with signing agents, that increase in activity over the past several years swelled the ranks of LOs. Now many of them, especially the newbies, are scrambling to get loans pushed through and aren't always handling it the best way. (Big surprise there!) I also wouldn't be surprised if we see an increase in "no-signs" at the table.

The savvy borrowers who are in good financial shape refinanced (some multiple times) over the past several years because they could get better terms or to take money out of the property appreciation to invest in upgrading their existing home. That accounted for a great deal of the volume of refinancing in the early part of this decade, but it seems those conditions no longer exist in most parts of the country. So those who have recently remodeled, fixed up their property and aren't planning to move aren't likely to be refinancing again unless they are faced with unexpected circumstances or kids entering college, etc.

I guess we should be thankful for those borrowers who choose ARMs with fixed rate periods coming due over time, or many more SAs would be out of business, too... ;>

Reply by BrendaTx on 2/26/07 7:19pm
Msg #177266

Re: An ongoing trend?

I still say that Texas has had less of this than any other state. This accounts for a flatter NSA market in areas which are more rural. In DFW, Austin and Houston there is more ARM financing and HELOC financing that in farm communities...and lawsy, we have our share of those.

People in Texas actually like to pay off their mortgages--even the boomers.

It was only in 1997 that Texans became eligible for HELOCs / 2nd mortgages. That's when the state's constitution was amended to allow for it and many people still don't even realize that you can take equity out of your house in Texas.

Til 1997, it was all about getting ONE mortgage and paying on it until your house was paid off. Borrowing against one's home for any purpose except life/death is a relatively new concept in Texas.

Reply by NCLisa on 2/26/07 10:41pm
Msg #177286

Re: Here, too!

My theory is that since refi's have picked up a little, the LO's and MB's are getting greedy and just trying to push it all through, even if is not what the borrower wanted. They want the same lifestyle they had 3 years ago!

Reply by Bob_Chicago on 2/26/07 11:56am
Msg #177203

First time for this.Calle TC to ask about dox few hours..

before scheduled appointment.
TC said that they were just abut to call me to CXL because lender
(sub-prime ) had just shut its doors in the last few minutes. TC was
not very happy because lender had been a big customer of their's
Fortunately, TC called bwr to advise.
Sort of like writing a check and having it come back from
bank marked "Returned for insuficcient funds, not yours, ours"