Posted by Clem/CA on 9/12/13 12:23pm
Msg #484360

Rates rising, banks hit the brakes on mortgage business

http://www.cnbc.com/id/101022916

Reply by Notarysigner on 9/12/13 12:29pm
Msg #484362

You think SS will be "hitting" the breaks on payments? You betcha...we need to monitor who's late with payments and keep everyone informed.

Reply by 101livescan on 9/12/13 2:41pm
Msg #484385

Why Won't SS's pay?

Because they can't. Especially those with no diversity, those who sprang up out of nowhere with no loyal customer base and no working capital, no business skills, completing lacking in integrity and professional behavior.

They will wring this towel until it is completely dry. Notaries will be sucking wind. Phones will be disconnected, websites will go down.

The carnage will be humiliating, dumbfounding, bleak and just devastating to so many notaries who've worked hard for peanuts and not compensated.

I hope that every one does their homework. Where do these companies office, get after hours numbers, are they licensed to do business, are they also notaries in good standing?

Be on HIGH ALERT. Although available orders have dwindled, ONLY WORK FOR THE BEST, and know who the worst ones are by doing your homework on this and other forums.

Reply by ME/NJ on 9/12/13 12:56pm
Msg #484366

Rates are down, love the delayed info media says to scare people. In the last week I've seen avg 30 yr fix between 4.37-4.65 3 weeks ago it was over 5%

Calls have also picked up this week for me booked solid this week and a normal amount scheduled next week and missed out or declined a large amt of Quicken deals in last week.

Reply by pat/WA on 9/12/13 1:53pm
Msg #484374

Rates go up - borrowers buy and agree to higher interest rates - borrowers cannot afford to pay mortgages - banks foreclose - government steps in - loan modifications begin

Reply by Yoli/CA on 9/12/13 2:01pm
Msg #484381

Friday, had a 30-yr fixed $357,181 FHA at 3.750% purchase of a brand new home.

Seems the low rates are still out there. Just a matter of finding the right broker. In this case, broker is a friend of theirs.

Reply by LynnNC on 9/12/13 2:09pm
Msg #484382

They probably locked before the rates went up.

Reply by janCA on 9/12/13 3:41pm
Msg #484397

Or possibly bought it down.

Reply by Bear900/CA on 9/12/13 6:58pm
Msg #484420

Apples and Oranges

FHA is typically .375to 0.50 lower then Agency (Fannie & Freddie) on a daily basis.

Borrower paid closing costs keeps the rate lower than if the lender pays the closing costs.

This is true with the same broker and same lender. Friend or foe, rates are rates.

Brokers can't cut a deal like they used to. If loan fees are going to be lender paid, the broker is locked into a compensation agreement with the lender by law. They can't cut their own mother a deal.

Track MBS daily. If they go up, rates go down. Doesn't matter lender or broker. Don't track 10 yr, 30 yr , blah, blah. If I were a borrower I would look at a few other things:

1) What compensation fee is the broker or LO locked into? You can ask.
2) Shop title and escrow fees. There are some wide spreads these days. Sometimes more then double.
3) Save $300+ by not using a notary service!
4) Don't finance your tax and Ins reserves required by the lender if you can save up for it. Watch the time of the year you finance as more reserves are required at different times.
5) Buy the rate down
6) Get a 45 day lock. Cheaper than an extension
7) Have impounds
8) Get your FICO above 720. Use a service if you have to.
7) Ask to use a lender that they have the cheapest comp plan with. One lender may be paying them 1.5 pts, another 2 pts. Rates for any lender can be the lowest one day and the highest the next day.
8) Ask what the lender fee is. It could be $1,000 +. Sometimes lenders have specials.
9) Ask what the processing fee is. Are they using outside or inside processing?

These can affect your loan costs, and if the lender pays the loan costs you pay a higher rate.

Reply by desktopfull on 9/12/13 8:45pm
Msg #484441

I had one like that last week too, but did you look at the MIP payment? On the loan these people were going to be paying a MIP payment of $189.00 per month for the life of the loan. That comes to $68,040.00, then add to that the $4800.00 in closing costs that they rolled into the loan. IMHO, these people would have been better off with their 4.75% conventional loan that they replaced. They had already paid on the loan for 6 years.