Martin Wareing's Discussions

I'm in Central FL and FHA is buzzing around Orlando like a bad rumor.  I don't and have never done FHA loans in the past, but that is not the point.  FHA is the FL mortgage broker's "subprime" loan.  Although the scenario is not subprime... the FNMA price increase (would not apply here) has been tossed around the lot to scare Broker's into going "Netbranch".  A "typical" mortgage broker does not care how he hooks his client, just that he hooks him. The good news is the consumer will figure it out and will not be happy as the MIP comes to town, but FHA "looks prettier" (slightly higher SRP and no "hits" for inferior ccredit scores) on the surface and to most, this business is "skin deep" and opaque at the same time.  Gotta love it!

JM, I have enjoyed ZILLOW as I have used it since finding it a long time ago for personal needs.  I have enjoyed answering questions and consider that part of this "membership" our responsibility to offer credible information without "pimping ourselves". For the  most part, it has been great and there are a couple threads I have not offered the solution as the chats were going sideways and downhill.  I did already meet with a potential client.  He was what he stated with sky high scores, etc. and 20% down. He visited me personally as I only quote local. For the record, I "redisclosed" the current rate/SRP and showed him the ratesheet from the day I quoted him (7 days before & .375% lower), so I was nervous at time. Perception is reality. All went well, undestood and waiting for Contract.

Mornin' Jennifer & Bryan, Zillow is a great forum to educate people in our communities as the system and infrastructure is in place. My borrowe does not have property address so NOCANDO on the lock anyway and neither can anyone else, but still a little slap of reality. Some Brokers will lock without an appraisal and may have to redisclose depending on LTV, who knows.  I value my lockin and delivery percentage, so I simply make sure my borrower is committed to me first, then I lock.  I very rarely require COD for appraisal or upfront money and fortunately, I have not been burnde for that in over 15 years. JM,  you keep it real without pimping.. Good stuff.. keep it up.  This is a marathon, not a sprint.  Mortgages and Real Estate are not funny, cute or an investment of any sort curently. Realistic sound advice is what is needed to get out of this. Unfortunately, many threads or questions ask for the pie in the sky exceptions and great answers to boot.  Keep rockin.

DY, Just my opinion, but I would doubt they will sell a current paying FNMA loan for 80 cents on the dollar.  I would think they would love to unlaod trash for that price, but that is mainly because it is very apparent that the asset is not worht anymore than that.  Nat City was rumored last year to desparately looking to unlaod 7bil in HELOCS.... NO BID...    I think that is the problem with the system.. We lower/reward the non-payng speculative TRASH and we can't get the elite credit score loan rates lower.  It's Wack.  I enjoy your posts as they remind me of the Talk Radio DJ's that take a stance whether they really believe it or not, but get the corwd going.  Good Stuff Maynard.  Don't buy any MBS from FL as our housing prices have fallend more than 20% leaving your 80 cents on the dollar upside down.  That is why they are still for sale.  Keep rockin.

ksh, You have a "Plain Jane" Vanilla loan and can prepay any amount at any time without penalty.  All of the language you are/were quoting is just YADA YADA..  When you redice the balance, the lender will NOT reduce the orignal amortized payment and future payment "regular" or not will simply put you on a faster track to financial freedom.  In the event of large prepayments of principal, it is wise to notify the LENDER as they do not automatically apply it to principal without your direction and it "sits" (not for long) in a "holding type" section and is apllied 1st towards a negatvie escrow situation first and then the principal.  Just tell 'em where to apply and you'll have ZERO problems.  As far as Bill reading into a $5,000 above principal statement you did not put in your original question  and there is not a prepay from what it said above so don't know how anyone dreams up or potentially asnwers issues not present.  Good luck ot financial freedom.  I'll give a little feedback on Correpsondent Lenders over there.

ksh, DY is on the money there.  The designation of Correspondent Lender is a mortgage originator that closes/funds the loan in their own name with "their own money".  Most times, leverage is used and they actually "borrow" the money from a credit line.  Correspondent Lenders DO NOT SERVICE LOANS.  They are a "Broker on Steroids".  Sometimes they can get a little better pricing, BUT that efficiency or bulk savings is hardly ever seen by a consumer directly.  What funding allows a Correspondent Lender to do vs. a Broker is NOT HAVING TO DISCLOSE THEIR INCOME FROM THE LOAN.  The funny part is a Broker, Lender, or Correspondent has a right to be paid/compensated for work and if the interest rate/costs were the same form these 3 different parties, the compensation would also be very close, yet it is only the Broker who must show it as he did not fund it.  There's your Correspondent 102 info as DY gave you the 101.  Good luck on  your closing.

MB, I can offer a little helpful guidance, but I don't want you to take this out of context or consider it chastising.  You declared Bankruptcy a few years ago effectively relieving yourself from your old debts and pressure; you have marginal credit ( I am in hopes you simply mean a lower score from the Old BK and not late payments since the BK); you make $15,000/month and you have 3 -5% down, probably 5%.  If that is the case, I would not buy a home in this condition.  You have not "saved" enough money for emergencies. I don't know the situtation as to your BK, but I know it is mainly when people can't handle debt. Why would you want to be that leveraged right off the bat?  I would suggest that you wait until at least 10%, get a good mortgage LO to guide you through what you need to do to get a CONV rate (FIXED) and settle for nothing less. Patience will save you 10's of thousands to 100's of thousands in interest.  Good luck.

BC, Keep doing the right things every day and you'll build a solid foundation for being an expert in your field in your area.  Trying to capture the world doesn't work for anyone... Not ELoan, Quicken, etc...  I have had several CONV loan quotes that net 1.1% total compensation be "Declined" by "shoppers", so we can't get bent out of shape as the truth surfaces at 1 point or another in the process.  We all drink from the same wells, so it is our "margin" and potential efficiencies that affect the final price to our clients, but nobody works for free.  Keep rockin'.

Is "Loan Guy" Bank of America?  If not, regardless of recommendation, you don't need Loan Guy to pull your credit as you already know you are Golden. If he is not BofA, tell him not to pull your credit, but 1 inquiry will have no negative impact on your score and you will easily qualify for a mortgage. 2ndly, if "loan guy" is a competitor to BofA,  when you pick out a house, compare the 2 quotes (same rate or same lender fees) and you will see the winner.  BofA is a great Lender, but there nocostsopmi is not for free and you will see that it is simply "packaged" differently.  3rdly,  You may and  do say may (depending on income, etc) be ablet write off/deduct the MI portion of yur payment as well on taxes AND some day you could get it completely removed.  I do not think BofA will reduce your interest rate in the future.  Either and/or both should be very open to answer the questions/concerns as candidly as I do or you should look elsewhere.  Just remember,  there is not a Lender that is an oasis.  I simply mean, we all have the same products, we just have different marketing techniques and vocabulary.  Good luck and I'm sure you will be treated like royalty as excellent credit is a very valuable comodity.

JM, The consumer will inevitably get what they ask for. We all want the lowest price...  Apple Stock at 1985 prices...etc, so I can't blame them for trying, but now that I am an old fart at age 43, I know that the "spread" from 2-3 different competitors for anything (paint, fences, attorneys, mortgages, realtors, etc) is within 10% of the costs for the same product or there is something wrong.  Nobody gets/delivers any loans below cost and stays in business.  Not me, you, Andrew or anyone. We feel "cheated" when a consumer hits decline on a tightly priced deal and you see what some other BS was fed, but when I met with my prospect last FRI, he had jsut left another Lender/Broker's office and he received a GFE (ZERO/ZERO) 30 year fixed and the beginning number on the quote was not a 5. I am not a smoke-n-mirror Broker, so quoting may be a hamstring to me upfront, but it is about localizing Zillow to my radius and answering a few questions here and there.  Keep doin what you do.