Posted by JK/TX on 11/2/07 9:51pm
Msg #219541

Had a Subprime Today ! .....

Sale Price $124,000,.... Loan amt. $107,000. at 10% fixed, 30 yrs.... Seller paying $7150. of buyer c.c./ppd's. Broker fees including processing $5600.(4 points for origination fee). Lender/Investor fees were normal... Cash from borrower $19,000. Borrower was expecting to bring in $10,000 to $12,000....... didn't close. I swear, I just don't know how some of these brokers sleep at night.

Reply by OR on 11/3/07 1:05am
Msg #219548

Re: Had a Subprime Today ! .....I had one on thursday too

A Countrywide Subprime. Who knows what is going on in the lending world. I think that the Sky is falling, the sky is falling maybe. Just kidding

Reply by Loretta Reed on 11/3/07 8:29am
Msg #219553

Re: Had a Subprime Today ! .....I had one on thursday too

I did a scary one last week. Loan amount $197,000. Appraised at $256,000. An FHA loan, 160 pages.
2.5% lender discount fees, 2% loan origination fee, ready for this......

$5,697 for a broker "consultation fee (never seen that before). After all of their other fees, it was $19,000 in closing costs. That is 10% in lender fees which is "highway freaking robbery".
8.5% interest 30 years fixed rate with pmi/mmi. Their payment was around $1,800 a month.

Felt bad for them and had one underwriter tell me that this loan was a no-no. She said lenders can't charge over 5% of loan for lender fees. Don't know who is right but these people were desperate.

Reply by JK/TX on 11/3/07 9:40am
Msg #219558

Re: Had a Subprime Today ! I had one on thursday too-You win

That is sad! Was the $5,697. "Con & Insulting Fee" POC by lender ? Hope that lender doesn't plan on selling that loan! I've been told the broker fees cannot exceed 5%.

Good thing... borrowers now have a fixed rate. Funny, I remember back in the mid to late 90's, 8.5% was a good interest rate (if you didn't have to pay 2.5 discount points).

Reply by MrEd_Ca on 11/3/07 9:36am
Msg #219557

Another shocker!!

One I did last week : APR of 16.083%, Amount financed $87K of which 11K went to Broker Commission, Loan Origination ect. This one was going into, maybe was already in, foreclosure. Nice family but, yes, lots of toys ..... I don't know about the brokers but I have trouble sleeping at night thinking of things such as this.

And, on another note ---- an article in this mornings SF Chronicle about Real Estate appraisals:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/11/03/MN10T5DS5.DTL&tsp=1

Reply by jba/fl on 11/3/07 7:10pm
Msg #219608

Re: Another shocker!!

"an article in this mornings SF Chronicle about Real Estate appraisals"

Have seen this same article written by others in various places - not such a shocker really.

Did a World Bank pick a payment this am - lots of crap still out there. these people already got rid of their toys, want to get rid of house, again: who will buy? Older homes just not moving - builders building like crazy still and if buyer gets choice of brand new w/updated appliances, etc., why take older home? Even if it is built better sometimes. Our collective mindset is skewed...