Agency Direct Meets Great Rates

Mortgage and Lending with Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, NMLS #138061 MMCD #1141

Agency Direct Meets Great Rates



     In the past, I've blogged extensively about the benefits of agency-direct mortgage products (loans sold direct to Fannie Mae, Freddie Mac, and Ginnie Mae).  These products are a must-have for lenders that work with real estate agents to ensure less than perfect borrowers still had a straightforward loan process with no snares of investor overlays.  Overlays have been a bane to the mortgage business, and often loan officers don't even know the overlays of the agency direct mortgageinvestors their employer sells loans to -this causes those last minute "oops" that can at best delay a settlement, or at worst, derail the entire home purchase.



What are some perks of agency-direct products?



- No overlays for FICO scores.  If Fannie, Freddie, or Ginnie like a file enough to issue an automated approval, the lender will do the loan (provided everything else meets requirements).  Some lenders have implemented high FICO overlays (some will only do 660+ FICO scores for FHA borrowers and 640+ for conventional), but with agency-direct, lower FICO scores can be approved as well.


- No minimum borrower contribution.  100% of what the buyer has to put down and pay closing costs is a gift?  With many investors, this poses a problem.  In the world of agency-direct, this is perfectly OK.


- Investor want to buy a home but already owns 5 properties?  Many investors won't finance someone if they already have 4+ properties with mortgages on them, but with an agency-direct product, we can finance up to 10 properties.


-  Many, many more scenarios that fit agency guidelines that many investors won't touch.



     In the past, agency-direct was a great perk, but it came at a cost.  Rates were higher (while some investors had many pesky overlays, the risk mitigation resulting from those overlays allows more competitive pricing).  Now, Mason McDuffie has matched the pricing on all agency-direct products to all investor products!  What does that mean?  Simply put, the best of both worlds - no pesky overlays, and rock solid interest rates.  



     We can now offer our lowest rates on agency-direct products for BOTH conventional and government (FHA/VA) products.  This move will allow us to save clients more money and streamline the underwriting process, which is a win-win for everyone involved.  



     Bye-bye overlays, bye-bye guidelines that vary by investor, and hello to common sense, by the book underwriting coinciding with great rates!  When everyone wins, it's a beautiful thing!


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Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hi John, this is great information, many investors may not even know they can finance multiple properties. Who doesn't like to save money?? Thanks for sharing your knowledge.

Jan 26, 2016 05:00 AM #1
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Haha ... boy do we know about "overlays" and how oh so many naive consumers get sucked in with new construction lenders that bait and switch.  Great post!

Jan 26, 2016 12:42 PM #2
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Great rates are always an awesomely effective way to do things and I support it fully in every way!

Jan 26, 2016 03:13 PM #3
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

The overlays are always interesting that way and I wouldn't expect anything else in that sense.

Jan 26, 2016 03:16 PM #4
Kat Palmiotti
Grand Lux Realty, 914-419-0270, - Monroe, NY
The House Kat

It sounds as though consumers win as they will get a great product to service their needs. 

Jan 26, 2016 07:40 PM #5
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the information. I will mention this to investors. 

Jan 26, 2016 07:53 PM #6
VRI Commercial Real Estate - Hazlet, NJ
Commercial Real Estate Specialist

John Meussner Great info.

I'm just curious as to whether ALL lenders offer Agency Direct services?

Anticipating your reply . . .

Jan 26, 2016 08:55 PM #7
Rob Spinosa
Guaranteed Rate, Marin County, CA - San Anselmo, CA
Vice President of Mortgage Lending, Marin County

Great information to put out there.  A little technical to those not in our industry, but can be summed up with your sentiment above --- work with a lender that has access to direct product.  It will save a lot of deals.

Jan 26, 2016 09:25 PM #8
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

John Meussner 
Always learn so much reading your posts!!! Thanks for the clear explanation. And beautifully said - "When everyone wins, it's a beautiful thing!"
All the best -

Jan 26, 2016 10:19 PM #9
Corinne Guest, Managing Broker
Barrington Realty Company - Barrington, IL
Barrington, a Luxury, Country Suburban Lifestyle.

I come from a background of mortgage underwriting in England, where it was all direct lending a company's own money. The investor thing was a wild new idea for me to grasp when I got into real estate here. Overlays is a new term for me but it makes sense. What you're describing here makes total sense, bravo to the company that stepped up to logic!

Jan 26, 2016 11:02 PM #10
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

This guy John Meussner  should be teaching Mortgages 101 in classrooms. That's all I know

Jan 26, 2016 11:18 PM #11
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Great post highlighting the benefits of agency-direct mortgage products.  I've found the multiple property/investor options to be of great assistance for my Chicagoland clients, John Meussner ... something valued and needed.  Thankfully these options exist ...


Jan 27, 2016 12:31 AM #12
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

John Meussner ~ how do you spell winning? When you say bye-bye to  guidelines that vary by investor, and when you say hello to by the book underwriting, common sense, coinciding great rates, and John Meussner

Jan 27, 2016 01:04 AM #13
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Thank you sir!  WINNING indeed : )

Jan 27, 2016 02:07 AM #14
David Alan Baker Laveen & South Phoenix Realtor
HomeSmart - Laveen, AZ
Your local Expert

Sounds like a nice change coming to benefit more folks.

Jan 27, 2016 02:16 AM #15
Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

Good to know John. Thanks. I worked for an agency direct lender but they had their own overlays. It didn't work very well.

Jan 27, 2016 06:00 AM #16
Bruce Brockmeier
Internet Marketing Consultant to REALTORS® - Yorba Linda, CA
Coached By Crouch

Hi John Meussner

I'm always happy to hear about a win-win!  

It's wonderful to learn that common sense really does still exist.  

Jan 27, 2016 10:13 AM #17
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

John Meussner - well, sure it looks like best of both world! Best rates and lower FICO is acceptable.

Thanks for sharing...

Jan 27, 2016 01:17 PM #18
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Getting away from Big Banks and there over lays is important.  I also think that we are starting to see more creative (but healthy) financing in the market right now.

Jan 28, 2016 12:31 AM #19
Kelly Turbeville
Keller Williams - Lake Forest, CA
Turning Real Estate Dreams into Reality

Thanks for the informatiion John Meussner, I was just speaking with a client abou the importance of working with a lender who offers direct products... 

Jan 29, 2016 01:50 AM #20
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#MortgageMadeEasy Walnut Creek, CA 484-680-4852
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