Posted by Glenn Strickler on 1/5/10 12:39pm
Msg #316729

Mortgage Approvals

Does anyone have a good source to determine what percentage of home mortgage applications / loans are actually being approved? Banks and lenders don't want to let that info out. Someone must have an accurate number. This is just for my own curiosity. I did have one loan officer tell me that a very high percentage of his are approved due to a pre-screening process. They don't take applications from those who don't pass a pre-screening.

Reply by mwm143 on 1/5/10 1:11pm
Msg #316751

Wonder what is considered pre-screening without taking an application that doesn't violate ECOA, RESPA, HMDA and about a dozen other acronyms. Slippery slope.

If banks/lenders are disclosing that information at all it's probably through a government agency.

Reply by Shoshana/AZ on 1/5/10 1:30pm
Msg #316755

What I have just learned (from listening to a GFE webinar) is that if the 6 application triggers are present, the LO/Broker must issue a GFE. However, that GFE expires in 10 days if nothing is done with it.

Reply by Glenn Strickler on 1/5/10 1:32pm
Msg #316756

I don't know. He would not elaborate. When you do go to many lenders websites, they do have a box where you can enter the size loan you want and your income and in some cases, your credit score and they will tell you if you will qualify or not. There has to be a legal method to pre-screen people. No one wants to say, though. Quite obviously, if I want a $300,000 loan and only make $2500 per month, that isn't going to get it.

Reply by ReneeK_MI on 1/5/10 1:52pm
Msg #316763

You can get what we called an "in-file" credit report without triggering the RESPA hot-button. It's not all that accurate nor very in-depth, but that plus a clue about what the 'pre-applicant' is interested in can sure stop a lot of wheels from just spinning and going nowhere.

There wouldn't be a way to track these 'pre-applicants' because the industry doesn't WANT to - and what would be the trigger for a 'pre-application'? Talking to someone on the phone? Giving just general info and not specifics? The logistics just don't work.

Once it's a fully-fledged application that's originated, tripping the RESPA rules - that no doubt can be tracked but wouldn't likely be put up on billboards. Nobody likes to waste time (time is money) trying to fit a round peg into a square hole, though. Besides, how often have we read that originations were up (see, it is tracked) and everyone gets all starry-eyed for what will come through the pipeline ...only very little does. I never paid attention to increases in originations for that reason.

Reply by Glenn Strickler on 1/5/10 2:08pm
Msg #316767

Thanks, that helps a lot.

What triggered my curiosity were the hundreds of empty houses in my area and the claim by local real estate people that sales are way up. And of course, the local paper makes the case that "sales" are up. They are counting homes that enter escrow, not the transactions actually being closed.

Well, as it is turning out, offers and homes entering escrow are are way up, but there are still only a trickle actually being closed. The actual numbers seem to be a national secret.

Reply by ReneeK_MI on 1/5/10 3:09pm
Msg #316776

about sales being up ...

I'm not sure what "entering escrow" means here, Glenn?

I do think sales are happening at a decent pace ...just not a decent price. LOTS and lots and LOTS of foreclosure sales going on here. (Lots - did I say lots?)

I did some research for comps around a house my family will be selling - 14 houses sold within 1 mile, within the last 12 mos. Like I said - lots. Now, as for PRICE ...don't ask, too depressing. From what I see - it's mostly cash, too.

Reply by tony1994CT on 1/5/10 8:46pm
Msg #316841

Does anybody know how we are going to make a living once interest rates start to go up and all the people that have to refinance will have refinanced their mortgages?