Same day home loan approvals do happen. I have them happen quite often, and yesterday it was less than thirty minutes after I submitted a file.
The key to a quick turn around in underwriting a home loan is the quality of the submission. The quality of the submission is dependent upon a seasoned loan originator who knows what documents are needed, assemble them in a clear order, document the file with an explanation of the contents. Of utmost importance in the quality of the submission is the person seeking the home loan providing the loan originator with … (1 comments)
After many months of saying the implementation of TRID - the cfpb's Know Before You Owe rule, would NOT be delayed, the cfpb is issuing a proposal to delay implementation until October 01, 2015. Here is the statement that was issued by Richard Cordray late yesterday.
"We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks. We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers … (5 comments)
Are there still sub prime loans available? Over the last few years the mortgage lending field has changed a lot. Recently the "qualified mortgage" has been analyzed and implemented. The CFPB set new guidelines for a qualified mortgage, ability to repay, loan originator compensation and a host of other rules that affect mortgage lending. (Interesting enough one of the directors who spearheaded this move has now left the CFPB to run a company offering loans that are not qualified mortgages.) For some folks sub prime mortgage loans are the only answer … (2 comments)
When shopping for a home mortgage loan how easy is it to fall for glitz and glamour? I've been in my industry for quite some time now and I have seen companies come and go. More particularly I've seen loan officers who went beyond the bus stop benches to billboards. Catchy phrases, outlandish promises and sky high egos. As I'm typing this morning I wonder... what ever happened to these guys? I was checking out a competitor today and saw average closing times 14 days, loan declines less than 1.5%. The boasting is there to draw … (0 comments)
Some days I just want to shout at borrowers PLEASE STOP PLAYING WITH YOUR MONEY! As most seasoned loan originators I go to great length at the beginning of a loan process to collect bank statements and reinforce how important documenting transfers and deposits of funds is to their closing. It seems more and more these days, and maybe because we overall have a more qualified home owner, borrowers have multiple accounts and they move money around between them as often as one changes one's underwear. Even when funds can be documented, less is more in … (4 comments)
borrower: Supreme Court Says Discount Points Don't Equal Lower Rate
- 05/25/12 08:20 AM
Supreme Court Says Discount Points Don't Equal Lower Rate Wow, I don't want to get all giddy here, but this looks like some common sense! According to an article written by Brian Collins in National Mortgage News, the supreme court ruled in favor of Quicken loans regarding a suit where the borrowers say there was a RESPA violation. The borrowers felt if they paid a discount point they should have received a lower rate for it. The lender says they did; they say they did not. Who Cares? What I care about is by ruling in favor of the lender the Supreme … (13 comments)
borrower: HOW DO MORTGAGE BROKERS GET PAID?
- 05/07/12 07:10 AM
HOW DO MORTGAGE BROKERS GET PAID? How I get paid comes up early on in a conversation with a home loan applicant. Mortgage brokers are paid by either a consumer or by a lender, but not by both. Prior to April 2010, mortgage brokers could get paid by a combination, but the loan officer compensation rule that went into effect on April Fools Day put an end to that. When a lender accepts a loan from a mortgage broker they pay "yield spread premium" or YSP. A mortgage broker is required to disclose to the borrower the gross amount of money (YSP) the firm … (6 comments)
borrower: WHY DON'T BORROWERS UNDERSTAND LOAN TERMS?
- 07/18/11 05:47 AM
WHY DON'T BORROWERS UNDERSTAND LOAN TERMS? As a loan originator who has worked in the industry for nearly 14 years I simply cannot understand why a borrower would call me and say they have been quoted a 4% interest rate on a thirty year mortgage and want to know if that is a good deal. Heck yeah! That rate, with zero origination, zero points, no built in buydown using the equity, low closing costs, fixed for thirty years, no prepay penalty, Trust me, I'm glad to get the call but it is frustrating that consumers are so easily misled! Once that carrot … (4 comments)
borrower: WHAT ARE LOAN LEVEL PRICE ADJUSTMENTS?
- 07/05/11 07:27 AM
WHAT ARE LOAN LEVEL PRICE ADJUSTMENTS? - OR OTHERWISE KNOWN AS LLPA'S IN MY INDUSTRY. HERE IS WHAT THE CONSUMER NEEDS TO KNOW about loan level price adjustments. What are they? Do all borrowers get them? Can they be avoided?
Fannie Mae reeling with losses on mortgage loans has implemented "loan level price adjustments". These adjustments can change the interest rate significantly, or can increase fees at closing for borrowers. These fees apply to the mortgage loans that are underwritten according to fannie mae guidelines. When housing is struggling to recover it would make sense that there not be roadblocks … (2 comments)
borrower: WHAT IS THIS REALTOR PROCESSING FEE?
- 05/16/11 05:22 AM
WHAT IS THIS REALTOR PROCESSING FEE? I am about to begin work on a home purchase and the borrower tells me there is a "Realtor processing fee" for the real estate company. I've run into this a time or two, but what is it for? Real estate companies charge a commission that comes from the seller's proceeds usually. A few companies are charging a "processing fee" on top of that commission. It happens that this particular loan is only about $50K. I've not put the figures together yet, but the "processing fee" could put this over the line into a high … (4 comments)
borrower: LENDERS MUST VERIFY BORROWER'S ABILITY TO REPAY . . . REALLY???
- 05/11/11 07:11 AM
LENDERS MUST VERIFY BORROWER'S ABILITY TO REPAY - REALLY??? It seems housing recovery just can't get a break. There is a constant flow of new rules and regulations to "protect the consumer" increasing costs and reducing qualified borrowers. The Dodd-Frank duo are busy at work writing rules for the latest dagger to the heart of real estate recovery. The latest rule that Lenders Must Verify Borrower's Ability To Repay - would be an oxymoron to most of us in the industry. Isn't that what underwriting does - verify the borrower is apt to pay back the loan? REALLY! It's long been a required of … (1 comments)
borrower: HOW TO APPLY FOR A HOME MORTGAGE
- 04/11/11 11:50 AM
HOW TO APPLY FOR A HOME MORTGAGE In my 14 plus years in the home mortgage business I've seen a lot of applications for mortgages. While it is always great to work with someone seeking a mortgage, when the borrower is organized and somewhat prepared it is even more rewarding. Here a few tips to assist a borrower who wants to get ready to apply for a mortgage; some of the first questions I ask a potential borrower. 1) Have you been employed at least two years? If you are self employed, have you filed at least two years to tax returns … (0 comments)
borrower: ARE THE AWESOME INTEREST RATES GONE FOREVER?
- 12/23/10 11:54 AM
ARE THE AWESOME INTEREST RATES GONE FOREVER? In my industry there is a lot of discussion these days about how the interest rates in December have escalated so . We were seemingly stuck in a rut, rates were low (and they still are, really), the really important things like housing and employment were not improving, so there was not a lot of fear of rates rising. Well, at least not by a lot.
Now here we sit a few weeks later and oh, if only we had a crystal ball. That is always the case with long term interest rates. In … (0 comments)
borrower: YES I NEED ALL THE PAGES OF YOUR ASSETS
- 10/05/10 04:02 AM
YES I NEED ALL THE PAGES OF YOUR ASSETS. One of the hardest thing to get from borrowers is a copy of their bank statement. Why is this? When I gather information for a loan application and I request a copy of the last bank statement or 401K statement to prove the assets. I usually get one of the following: One page with the balance on it. (Hm-mm where did the money come from?) One or more pages that have no reference to the borrower's name or account number (Hm-mm, is this your account?) A printout on plain paper from the … (3 comments)
SAME DAY HOME LOAN APPROVALS
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