Short Term Refi's on the Rise. - 08.17.10
Today's Poll: Are you seeing an increase in 15 and 20 year refinance business?
A. As a matter of fact - yes I am.
B. Not yet, but this may be good for marketing.
C. No, but I'm going to give it a run.
Rate this Program
MortgageAngel: (August 20, 2010 10:45am)
Ditto what iamin said!
mrtgman: (August 18, 2010 11:06am)
Are you guys also a branch mortgage company?
iamin: (August 18, 2010 8:28am)
Frank I just have to say, you look Amazing. Congrats on the weight loss how did you do it?
Fundem: (August 18, 2010 7:26am)
Big feet means big shoes
W.R.Buchanan: (August 17, 2010 9:09pm)
Valuequestor:It will never happen if we don't try. Banks have erroded our business over the last 5-7 years, we can't expect to get it all back over nite. It will take some time, and it will take solidarity. If you don't help us then you are part of the problem. AMC's might not be in the equation much longer anyway. We are working to saddle them with as much BS as they have put on us here in CA and we are having an effect. We just got Henry Waxman Congressman extrodinaire in our CCAP camp. He was made aware of our group recently and said "It's about time they did this" "They" meaning Appraisers, and "this" meaning banding together. We've got his ear! And a valuable ear it will be, since he is one of the senior members of the House Finance Committee. Guys why not join CCAP and become part of the solution, we are having a significant effect after only being in existance 5 months. Every new member equals 100 constituants in the eyes of a congressman. We need numbers. www.cacap.org
GODLIKE: (August 17, 2010 5:36pm)
What do they say about people with big feet, that they are clumsy?
frankgaray: (August 17, 2010 3:08pm)
.....Well you know what they say about big feet....
Valuequestor: (August 17, 2010 3:05pm)
Great Show! Frank!....You Bigfoot you.
Valuequestor: (August 17, 2010 3:04pm)
Great Show! Frank!....You Bigfoot you.
Valuequestor: (August 17, 2010 3:02pm)
Randy: Its a fair and reasonable idea but it will never happen as long as AMCs are in the equation. We stand a better chance convincing the "deciders" to use an industry study such as Alamode's or keep pressuring HUD and VA get into fracus concerning fees. If they decide to do an independent government study to determine reasonable and customary fees it could take years. Then you will start the battle in the courts........ponderous, effing ponderous.
W.R.Buchanan: (August 17, 2010 2:47pm)
Obviously if only a few try this the lenders will just go elsewhere, but if enough people get on board, then it will become the normal way of doing business. Some say the banks will not pay that much for an appraisal. Well if they have to have an appraisal and they can't get one anywhere else, guess what ? They will pay the price! Think about it, it is an idea who's time has come! Randy
W.R.Buchanan: (August 17, 2010 2:43pm)
So why would an appraiser be expected to do a job for a set price only to find out said job is a nightmare and requires twice the time to do as quoted. Do you think a Lawyer would NOT charge for the extra time? The problem is that the established normal fee for appraisals has been "Ground on" by lenders, specifically for the purpose of increasing their profit for any given transaction, and over many thousands of transactions that adds up to MILLIONS. All essentially stolen from one party in the transaction. The appraiser. Guys, start mulling this over in your heads, obviously the banksters are not going to just suggest we do this, in fact they will fight it tooth and nail. continued I am emncouraging every appraiser nation wide to cionsider the concept of "Billable Hours". Talk to lawyers, doctors, CPA's, and others that use this billing system. If it is good enough for them it is good for US! The retaking of our industry must start somewhere. This is a real good place to start.
W.R.Buchanan: (August 17, 2010 2:30pm)
We as appraisers are considered "Professionals". We have to go to school, we have to take a state run test to get a license, we have to buy E&O insurance, we have continuing educvation requirements,and most importantly we have "liability" attached to every job we do. Why is it that in the 10 years I've been an appraiser the fee has been going down? There is a debate going on right now to establish "reasonable and customary fees" for appraisers. Everybody else who is involved in the Mortgage transaction is paid by Comission based on X% of the deal. Per USPAP we can't do that, so why aren't we using "Billable hours" like anyother professional service does. I thnk $75-100/hour is a "Reasonable" place to start. Most "average" appraisals take 5-8 hours to complete in a competant manner. Plumbers currently charge $95/hr, my car mechanic charges $99/hr. Why would $75-100 not be reasonable. Lawyers don't bill up front or quote prices beyond X/hour. Continued
W.R.Buchanan: (August 17, 2010 2:18pm)
I asked this question yesterday and no one responded. I'll try again. If a bank receives Bailout money to lessen the loss on a property shouldn't the recorded price of that sale include the bailout money? It's exactly like a seller concession or a buyer's premium or a Bently in the garage. Except it is going unnoticed by assessors, and everyone else. I have a house down the street that has just fallen out of escrow for the umteenth time for $700K. The bank (BofA and Wells in 2nd) will not refi the property to the current owner for $700K but they will sell it outright for $700K because they are getting $260K of TARP money paid to them on the back side of the deal. Shouldn't the "recorded sales price" on the property be $960K? Think about it? Doing that would push the market in my area up 25%! Join CCAP at www.cacap.org ! Randy
associatebroker: (August 17, 2010 2:14pm)
Don't worry, be happy! Hell, enjoy the Kinks!!
frankgaray: (August 17, 2010 12:49pm)
It's the little blue button looking thing that says uwrefippt.ppt next to it.
jcollins: (August 17, 2010 12:00pm)
WHICH LINK IS THE LINK TO THE FHA LOAN????
jcollins: (August 17, 2010 11:55am)
jsk3600:: DOes the rule really read that way or is that someone interp. Would'nt it be easier to just say no YSP to be paid at all. if it just reads that the LO can not be comp. then we do not. Let's get the real scope. I guess everyone will be working for Banks in the near future. Maybe that will be illegal as well. Welcome to another Soc. law. Via la OBAMA
jsk3600: (August 17, 2010 11:40am)
The law will be no ysp, srp, for anyone. You can only make it off what you charge the borrower and/or the seller. Going back to the eighties. Takes effect April 2011. Fed Policy.
jcollins: (August 17, 2010 11:21am)
Mark:: I disagree. It is the borrower decession of the borrower to rate and rebate. You charge a fee and they chose the rate and total costs. I do agree with you if you are saying that the gov. will not understand their own rules though. :)
jcollins: (August 17, 2010 11:20am)
Mark:: I disagree. It is the borrower decession of the borrower to rate and rebate. You charge a fee and they chose the rate and total costs. I do agree with you if you are saying that the gov. will not understand their own rules though. :)
cpappraisal: (August 17, 2010 11:00am)
If you guys have not done so already please go to this link and e mail your comments as they are asking for our input in regards to the AMC's and HVCC before the laws are implimented. Very important for all of us to e mail them and get our voices heard. http://www.fdic.gov/regulations/reform/index.html
mark: (August 17, 2010 10:52am)
jcollins - what will happen is even though we can get ysp and it rolls up into 801 and then is given back as a credit, they will see it as though we are still being compensated by rate/ysp.
jcollins: (August 17, 2010 10:34am)
MARK::: We do not get paid on the rate or term of the loan anymore. MUTE POINT. I do agree that the law suits will follow though. But, as long as you keep your comp. in line on all loans. It will be hard pressed to win the case.
NewParadigm: (August 17, 2010 10:27am)
@Artisan, while I agree with you in theory, in fact most people (was 98% 3-5 years ago) will not pay more than the minimum payment. That is why Option Arms were so profitable...and contributed to the mortgage meltdown. The 30 year compounded interest + tax advantages + refi/consolidation effects = perpetual renters. Hopefully, this economic collapse has indeed created more prudent consumers.
jcollins: (August 17, 2010 10:02am)
Where do I go to see the FHA PP???
mark: (August 17, 2010 9:41am)
Has everyone seem this information? Originator Compensation/Anti-Steering Rule - This final rule prohibits (1) payments to loan originators, including mortgage brokers and loan officers, based on the rate or terms of the mortgage other than the amount of credit extended, and (2) loan originators from steering consumers to a loan not in their interest based on the fact that the loan originator will receive greater compensation. The rule is effective for closed-end transactions secured by a dwelling where a creditor receives a loan application on or after April 1, 2011. Where do we sign up for the class action suit??
bern2surf: (August 17, 2010 9:30am)
Frank gets knocked out, Howard Jones throw back... brilliant!! Love your format, information etc. Keep it up.
GODLIKE: (August 17, 2010 9:03am)
ARTISAN term is very important because it determines the interest rate. But it is true you can always pay more and cut the term. If you pay one extra P&I payment a year you will cut your 30 year mortgage down to a 20 year and some few months.
joe: (August 17, 2010 8:46am)
@davidp: if your connection is slow, try hitting Pause on the player to allow it to buffer more, If you look at the progress indicator under the video, you'll see a little blue line creeping along left to right. That's the content buffering. Gvie it a minute or so and you'll probably be fine.
Florida Agent: (August 17, 2010 8:46am)
msmammypie...thanks again for the response. To clarify my prior question, I was not asking whther my brokerage could pay a "finders" fee. That is as illegal as it gets. My buyer was asking whether he himself was precluded by any rule, law or otherwise from paying something to this third party. In any case, my next call is the to the State's attorney's office, but your feed back on this clarified question would be interesting to hear. Thanks again.
Artisan: (August 17, 2010 8:39am)
Refinances, Term is so unimportant. I been reading about 10,15 and 20 year refi's but it really is a mute issue. Term, is the maximum number of years you are allowed to keep a loan. I tell my well educated clients to focus on rate, because you can set your own term just by the payment you make. Certainly lower terms give you better rates, but it doesn't mean you can't set a 30 year mortgage to a 20 year term. Just my 2 cents.
mparic: (August 17, 2010 8:39am)
davidp - Smooth video playback is highly dependent on not only the computer viewing the video but also the quality of your Internet connection. If you are having technical difficulties please send an email to support [at] thinkbigworksmall.com. Thanks.
mparic: (August 17, 2010 8:37am)
The PowerPoint file has been successfully downloaded and opened on Microsoft Office 2007 (Windows), Office 2008 (Mac) and OpenOffice 3 (Mac & Windows). If you don't have either Microsoft Office product, you can download OpenOffice for free at http://why.openoffice.org/ and get a full business-class office suite at not cost.
davidp: (August 17, 2010 8:34am)
The daily Shows are really Great & full of good information. If you could have your tech people troubleshoot your video's from preventing the numerous stops & starts during your broadcast it would be helpful to absorb the content presented without having so many distractions.Thanks!
jcollins: (August 17, 2010 7:51am)
which link is the FHA loan PP in?
joe: (August 17, 2010 7:47am)
Wondering how Frank is going to retaliate tomorrow...
frankgaray: (August 17, 2010 7:25am)
You may have to refresh the page to open the power point.
frankgaray: (August 17, 2010 7:24am)
April 17th... yep... that's what I have to work with every day. That's nothing, sometimes he even says the wrong year. I kid him saying "today is Lunar 42, 2112"... That's why we call him Captain Random around here.
frankgaray: (August 17, 2010 7:21am)
Power Point should download okay now...
frankgaray: (August 17, 2010 7:14am)
sorry guys we're fixing working on the power point right now. should be up in a sec.
GODLIKE: (August 17, 2010 7:11am)
I haven't done even 1 30 year refi. ALL of them have been 25 year loans of less. It's been amazing how many 10 year refis I've done. 10 year rates are amazing! From figuring many refi scenarios I can tell you that 20 year makes great sense as it's a very good blend of term vs. payment. Both 15 and 10 year loans have hefty monthly payments. I've sold it as probably their only chance the rates would ever be low enough for them to ever be able to do a mortgage of this short a term. For the first time since the election I'm eating more than beans!!
GaryP: (August 17, 2010 7:05am)
Just adding to what I said earlier, reports are showing that americans are paying down debt faster than ever seen before. In addition, the national savings rate has soared from 1.5% to over 6% of income. Obviously, this is a sign of the times and the kind of economy we are living in. I see the same in my own debt management and savings practices. Uncertainty and nervousness are causing folks to pay down and save. That's certainly not a good thing for economic stimulus and is reflected in the lower home purchase & consumer spending statistics that we are seeing now. Everyone is worried about their jobs. Ultimately, I think this will help us in years to come. I know that I could use more borrowers with more cash and less debt (and the higher FICOs that go with it) in my market. However, this all comes down to consumer confidence. People aren't going to return to the markets until they are feeling more confident in the real estate markets and their job security.
100' Tape: (August 17, 2010 7:03am)
Re: list price reductions. There are certain market segments in which sales prices are in the range of 60% to 70% of original list prices. This doesn't seem to reflect a catastrophic market, but rather unrealistic seller expectations, pricing that has a longer historic window than is appropriate, limited number of recent sales and the properties getting stale on the market.
GaryP: (August 17, 2010 6:56am)
What I have noticed on th 15 year refis is that a lot of my borrowers are older home owners with more equity in their home & low balances that allows them to refi. Also, I heard that a lot of refi clients are paying down their loan when refi'ing. Perhaps it's not a matter of these loans being more popular but just that the folks that do have enough equity to do a refi are able to do a 15 yr., and are attracted to it because of the nearness of retirement. They are just making up a larger percentage of the smaller number of refi's being closed. I just spoke to a client last night on a second home loan. They recently paid of a 5 yr. mortgage. That's something I have never even considered offering. Maybe it was just a home improvement loan. I didn't ask. I think this whole phenomenon also goes back to what we were talking about a few days ago, americans are "de-levering." They want to reduce their debts, and do it at a faster pace than in years gone by.
justasample: (August 17, 2010 6:21am)
Todays Tampa Bay area news reports that home values have fallen again in 2nd qtr leaving 45% of homeowners upside down. 1st qtr here had 53% underwater so that is an imporovement, but we are in essence at 2002 values which makes our refinance market pretty much nonexistent. If you take only Tampa into consideration we are even worse off. We have tried to refinance people only to find the propeties won't appraise. The feds are so out of touch with the real world and it is getting harder to see any light at the end of tunnel. Just answering the phone these days brings tearful stories. Fannie doesn't want to own up to the fact that the loans they wouldn't make(which went subprime)they were eager to buy for servicing. I know some pepople that got subprimes that found themselves making payments to Citi and Wells. Hypocrisy and stupidity backed by strong armed pols encouraging Fannie and Freddie to take on these loans has decimated the housing market.
amylee1115: (August 17, 2010 6:07am)
I couldn't open it either....
SGreek: (August 17, 2010 6:00am)
Same problem here with text converter. Yesterday, Wells Fargo issued a notice that they will NOT be participating in the underwater refi program at this time. 1st notice I've rec'd from any of my lenders yet. At least they're being proactive! LOL!
EastCoast: (August 17, 2010 5:06am)
Brian you took Frank out because he has lost some weight!
melnal99: (August 17, 2010 3:59am)
April, 17th.....really?
JohnP: (August 17, 2010 3:13am)
Hey guys, how did you save the power point on the refi's. It can't be opened because it's missing a converter, according to the error msg that I'm getting
GregB: (August 17, 2010 12:54am)
Was that Shelia E playing the drums for Howard lol