Comments on: Mortgage Rates on the First Day of Summer http://raincityguide.com/2008/06/20/mortgage-rates-on-the-first-day-of-summer/ Seattle's Leading Resource for Real Estate Information Sat, 21 Nov 2009 06:01:18 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Rhonda Porter http://raincityguide.com/2008/06/20/mortgage-rates-on-the-first-day-of-summer/#comment-320805 Rhonda Porter Wed, 02 Jul 2008 03:57:53 +0000 http://raincityguide.com/?p=1950#comment-320805 Bottom line, Roger, I would not depend on the Gov to find me the best rate or mortgage advice. :) I'm heading out to catch the last of the sunset and making raspberry sorbet for the kids (we had 5 teens--including our 3 over for dinner tonight). I'm going to take a much deserved break on the deck! Bottom line, Roger, I would not depend on the Gov to find me the best rate or mortgage advice. :) I’m heading out to catch the last of the sunset and making raspberry sorbet for the kids (we had 5 teens–including our 3 over for dinner tonight). I’m going to take a much deserved break on the deck!

]]> By: Roger Ingalls http://raincityguide.com/2008/06/20/mortgage-rates-on-the-first-day-of-summer/#comment-320804 Roger Ingalls Wed, 02 Jul 2008 03:53:43 +0000 http://raincityguide.com/?p=1950#comment-320804 Rhonda: To begin with, the government thinks it is pretty important for the borrower to know WHO gets paid WHAT. The WHO may or may not matter to the borrower, but it certainly does to the broker (you and me) and the lender. The discount point discussion gets pretty serious if you have some doofus broker/originator charging a mortgage broker fee, a discount point, AND earning a YSP, like the idiots that got caught doing exactly that at A-plus mortgage. Let me read this REAL SLOW, for anyone that doesn't know yet. YOU CANNOT HAVE BOTH A DISCOUNT POINT FEE AND A YSP FEE! If your GFE has both, grab your wallet, and run like hell for the exit!!! You and I both lose deals to liars and deceivers, and it will probably always be that way, no matter what the regulations are. But you and I will be around long after they are gone, with far more friends worth having. Rhonda:

To begin with, the government thinks it is pretty important for the borrower to know WHO gets paid WHAT. The WHO may or may not matter to the borrower, but it certainly does to the broker (you and me) and the lender.

The discount point discussion gets pretty serious if you have some doofus broker/originator charging a mortgage broker fee, a discount point, AND earning a YSP, like the idiots that got caught doing exactly that at A-plus mortgage.

Let me read this REAL SLOW, for anyone that doesn’t know yet.

YOU CANNOT HAVE BOTH A DISCOUNT POINT FEE AND A YSP FEE!

If your GFE has both, grab your wallet, and run like hell for the exit!!!

You and I both lose deals to liars and deceivers, and it will probably always be that way, no matter what the regulations are.

But you and I will be around long after they are gone, with far more friends worth having.

]]> By: Rhonda Porter http://raincityguide.com/2008/06/20/mortgage-rates-on-the-first-day-of-summer/#comment-320333 Rhonda Porter Wed, 25 Jun 2008 21:08:29 +0000 http://raincityguide.com/?p=1950#comment-320333 Roger, you're going to get me on a soap box! I think line 808 is plain stupid! Just how confusing are we going to make things for consumers? A point is a point. And does it really matter where it's at? Line 801, 802, or 808--bottom line the consumer is or is not paying points. The very definition of discount point should mean that all points are discount points, wouldn't it? Consider the following example (rates are examples and not quotes): A loan priced with zero points (nothing in lines 801, 802 or 808) with the rate of 6.500%. A loan priced with 1 point providing a rate of 6.25%. The 1% lowers the rate (regardless of what line we're suppose to put the point on). By the way, it's been well over a year since I've brokered a loan, so I never have to use line 808...but just think of the consumer... they're all ready confused when they call in saying "so and so lender down the street just quoted me 6.375%.." Me: Did you pay any points for that? Them: No discount points Me: How about an origination fee? How about line 808... And then...what if they're working with a lender who does not provide a GFE? I'm going for a walk to vent...argh! Roger, you’re going to get me on a soap box! I think line 808 is plain stupid! Just how confusing are we going to make things for consumers? A point is a point. And does it really matter where it’s at? Line 801, 802, or 808–bottom line the consumer is or is not paying points.

The very definition of discount point should mean that all points are discount points, wouldn’t it? Consider the following example (rates are examples and not quotes):

A loan priced with zero points (nothing in lines 801, 802 or 808) with the rate of 6.500%.

A loan priced with 1 point providing a rate of 6.25%. The 1% lowers the rate (regardless of what line we’re suppose to put the point on).

By the way, it’s been well over a year since I’ve brokered a loan, so I never have to use line 808…but just think of the consumer… they’re all ready confused when they call in saying “so and so lender down the street just quoted me 6.375%..”

Me: Did you pay any points for that?

Them: No discount points

Me: How about an origination fee? How about line 808…

And then…what if they’re working with a lender who does not provide a GFE?

I’m going for a walk to vent…argh!

]]> By: Roger Ingalls http://raincityguide.com/2008/06/20/mortgage-rates-on-the-first-day-of-summer/#comment-320328 Roger Ingalls Wed, 25 Jun 2008 20:50:06 +0000 http://raincityguide.com/?p=1950#comment-320328 Thanks for the double helping of generosity. I'd like to add to the definition of points to include line 808 form the GFE "Mortgage Broker Fee". This is the line that mortgage brokers are required to use, and can be considered the equivalent of an Origination Fee (that term is exclusively reserved for banks, and correspondent lenders). A Discount point, by law, MUST only be used as a payment to the lender/bank to reduce the rate. Putting origination fees in the discount points place was one of the violations found in HUD's audit of Aplus Mortgage. Honestly, they really should come up with a better GFE. I just upgraded to Point 6.1 and there are a few changes in the GFE, I think related to the coming mandated changes. Oy! Thanks for the double helping of generosity.

I’d like to add to the definition of points to include line 808 form the GFE “Mortgage Broker Fee”. This is the line that mortgage brokers are required to use, and can be considered the equivalent of an Origination Fee (that term is exclusively reserved for banks, and correspondent lenders).

A Discount point, by law, MUST only be used as a payment to the lender/bank to reduce the rate. Putting origination fees in the discount points place was one of the violations found in HUD’s audit of Aplus Mortgage.

Honestly, they really should come up with a better GFE. I just upgraded to Point 6.1 and there are a few changes in the GFE, I think related to the coming mandated changes.

Oy!

]]> By: Rhonda Porter http://raincityguide.com/2008/06/20/mortgage-rates-on-the-first-day-of-summer/#comment-320308 Rhonda Porter Wed, 25 Jun 2008 18:26:23 +0000 http://raincityguide.com/?p=1950#comment-320308 FOMC has voted to keep the Fed Funds rate unchanged...home owners with HELOCs are safe from having their rate increased...for now! The next meeting is in September (and they can always adjust prior to a scheduled meeting, although it's unlikely). There was "concerns of inflation" and mortgage bonds are reacting as expected (for the worse)...LOCK YOUR LOANS--DON'T FLOAT. Rates will be posted on Friday. FOMC has voted to keep the Fed Funds rate unchanged…home owners with HELOCs are safe from having their rate increased…for now! The next meeting is in September (and they can always adjust prior to a scheduled meeting, although it’s unlikely).

There was “concerns of inflation” and mortgage bonds are reacting as expected (for the worse)…LOCK YOUR LOANS–DON’T FLOAT.

Rates will be posted on Friday.

]]> By: Sam Chapman http://raincityguide.com/2008/06/20/mortgage-rates-on-the-first-day-of-summer/#comment-320121 Sam Chapman Sat, 21 Jun 2008 16:01:25 +0000 http://raincityguide.com/?p=1950#comment-320121 With jumbo loans now becoming investments for big banks as they look to keep them on the books for 5-7 years, rates are up for those buyers. With jumbo loans now becoming investments for big banks as they look to keep them on the books for 5-7 years, rates are up for those buyers.

]]> By: Rhonda Porter http://raincityguide.com/2008/06/20/mortgage-rates-on-the-first-day-of-summer/#comment-320112 Rhonda Porter Sat, 21 Jun 2008 05:09:11 +0000 http://raincityguide.com/?p=1950#comment-320112 It's my youngest sister's birthday today and I suggested we girls (there's three of us and I'm the wisest i.e. oldest) go...but I don't think we're going. Just lots of talk at this point. Something else that would be fun to do that I've never done before...not quite the Fremont Solstice Parade--but close: The Rat City Roller Derby! It’s my youngest sister’s birthday today and I suggested we girls (there’s three of us and I’m the wisest i.e. oldest) go…but I don’t think we’re going. Just lots of talk at this point.

Something else that would be fun to do that I’ve never done before…not quite the Fremont Solstice Parade–but close: The Rat City Roller Derby!

]]> By: ARDELL http://raincityguide.com/2008/06/20/mortgage-rates-on-the-first-day-of-summer/#comment-320109 ARDELL Sat, 21 Jun 2008 05:02:27 +0000 http://raincityguide.com/?p=1950#comment-320109 LOL, Rhonda, that eyefull may last me a lifetime. Once may be enough. But I do highly recommend that everyone go to see it at least once. The bicycle parade, that is. LOL, Rhonda, that eyefull may last me a lifetime. Once may be enough. But I do highly recommend that everyone go to see it at least once. The bicycle parade, that is.

]]> By: Rhonda Porter http://raincityguide.com/2008/06/20/mortgage-rates-on-the-first-day-of-summer/#comment-320105 Rhonda Porter Sat, 21 Jun 2008 02:31:09 +0000 http://raincityguide.com/?p=1950#comment-320105 Thank YOU, ARDELL...posting rates was a great idea for showing market trends. :) We just finished dinner on the deck which included some watermelon and kalbi ribs--it's SUMMER! Tomorrow's the Fremont Solstice Parade--I was just thinking about how we (you, me, Kim and Deborah) went there for the first time--what an eyefull! Thank YOU, ARDELL…posting rates was a great idea for showing market trends. :) We just finished dinner on the deck which included some watermelon and kalbi ribs–it’s SUMMER!

Tomorrow’s the Fremont Solstice Parade–I was just thinking about how we (you, me, Kim and Deborah) went there for the first time–what an eyefull!

]]> By: ARDELL http://raincityguide.com/2008/06/20/mortgage-rates-on-the-first-day-of-summer/#comment-320101 ARDELL Sat, 21 Jun 2008 01:32:00 +0000 http://raincityguide.com/?p=1950#comment-320101 "The rates go back to when ARDELL first requested me to quote rates at RCG." And I really, really appreciate it! Thanks Rhonda! Have a great weekend. “The rates go back to when ARDELL first requested me to quote rates at RCG.”

And I really, really appreciate it! Thanks Rhonda! Have a great weekend.

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