All Lenders are not the same

sd · Joined: 07 Mar 2006 Posts: 19

I have worked in the secondary market for mortgages for 18 years and it is interesting that people are always trying to find the best lender. It is a constantly changing market and there is not a set lender for all people. You have to find the one that suits your loan parameters not your friend or neighbors. Then you can look for the best pricing.

treyking44 · Joined: 05 Mar 2006 Posts: 4

Interesting topic you bring up. Could you expand your thoughts a little? I agree that your friend/neighbors lender may not be suitable, but can you offer some insight as to what various lenders offer that others don't?

Clearly, some lenders cater to individuals with poor credit or low income borrowers, but other than that what are the major differences you had in mind?

I only ask because I am trying to select a lender right now and I'm seeing little difference between the whole bunch.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Residential Mortgage lending for 2005

Wells Fargo Home Mortgage - $200 Billion +
Countrywide Home Loans - $150 Billion +

Staggering difference between #1 and #2 heh. It's also clearly seen in our local market as nearly every branch of Countrywide in our area has shut down, while our Wells Fargo branches have continued to increase in volume and production every month, without increasing our number of employees.

Sometimes there are specialties that yes, work best for one person but not another. Pay option arms, interest only, FHA even. Many lenders are going to have the similar basics, and it will come down to who services your loan and how much it costs you (and not just monetarily, either.)

The best thing to do is do your research. Ask around, get opinions. Everyone has an opinion, and they don't always apply to you. That being said, the more information you have the better armed you are.

And thanks, i was looking for an appropriate place to put in that little tidbit :)

sd · Joined: 07 Mar 2006 Posts: 19

the real issue is how much money the broker wants to make. $1000 is enough for a deal but many brokers try for much more . look for the one who will work for .50 on a 200,000 deal. the lender they sell the loan to usually pays them the .50 if they quote current rate. 6.125 for 30 year and 5.875 for 15 year. this pays the broker .50 or More back so you should pay NO more pionts or Origination fees. My site post current rates for the borrowers to use when working with brokers. These rates are for standard conforming product up to 95 LTV,620 credit score. good old fashion loans. There is a lot of hype for interest only, hybrid Arms etc but peace of mind comes with 30 year fixed rates. Rates just went up this week so watch for a small pullback possibly to 6. The bottom line is rates are low and are on the move up. we have had a great run on low rates but the party is almost over and the real world is coming back. With the prime moving up the mortgage rates have to follow. Travis is right about Wells being the number one servicing Lender but that doesnt mean they have the best price. Travis do you know the corr. division in Springfield? I have worked with the live pricing side for years and know them well.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Sd,

why don't you tell us a bit more about yourself. Right now you're sitting in a room full of consumers and lenders telling the consumers how much they should be charged and what they should settle for, but you're missing quite a bit of the details that go into the pricing.

Your profile says 'secondary marketing' but you don't have anything about how to contact you or who you're with. It would be helpful for your information if you could back yourself up and give yourself some support.

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

Bear in mind there are "subjectives" like:
1) Reputation
2) Customer Service
3) The extra effort that goes into helping customers that have special needs

Judging a lendor by rate alone can be quite a miscalculation.
Certainly nobody likes getting ripped off, but sometimes getting the "lowest rate" can carry extra baggage. ;)

We would certainly love to know more about what you do sd.
Thanks for sharing.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Sd,

You were pretty quick to come back and respond that brokers and lenders should be offering a 6.125% rate on a 90 day lock, and advising what your customers should be offering their customers as far as pricing is concerned, but you're not coming back to tell us about who you are and what you do, so that we can give support to your comments.

As a secondary market lender I'm sure that you understand that the pricing set by the broker or the lender contains more than simply how much the individual is getting paid. After all, we have to keep the lights on somehow, right? A wholesale ratesheet is also going to be lower than a retail rate sheet, for the simple fact that the profit is going to be built in there.

I go over with each of my customers the pricing for any given day, and while pricing is subject to the company, they have a good idea that I'm giving them a price that allows the company to make money (which is after all what we're all here for) as well as provides the borrower as low of a rate as possible for their scenario.

I'm eager to learn more about your company, until such time as you provide us more background however I'm going to nuke the link in your signature. Your website has no further information to support your claims, and i do not believe at this time that it is an actual benefit to either the consumer by misleading them into the belief that they are going to get a rate considerably lower than market pricing, or the brokers and lenders that visit this site.

sd · Joined: 07 Mar 2006 Posts: 19

I agree there is a lot more than price to look at but the borrower will determine if the broker is suitable for him. I am simply showing the borrower the rate to ask for. You know as well as I do the company you work for is now paying OVER .50 on the BROKER side for a 6.125 30 year fixed. I am only spending some time trying to assist the borrowers. If you feel you must NUKE my site from the post so be it. But there could be some borrowers out there that feel the site is useful to them. I have owned my own company for 18 years and the borrower has the right to know what rate he can be getting from certain brokers that are willing to work for a fair fee. I do not sponser any brokers. I feel you posters have some valid and important info for the borrowers but is it possible that my line of work might be of value to the borrowers also. I mentioned to you I have even worked with people in your city ( Springfield ) with Wells ( Corr. Side) for many years. I am not promoting my Company because it serves not the borrower but the Lender side but my knowledge of the market on the secondary side is certainly much different than the broker side. I do not work on the loan side of processing, doc prep and closing and do not make any claims to be a expert in those fields. You as brokers are the experts in that field. Sorry if I upset anyone and maybe this forum is the wrong one to post on. Maybe some input from other posters would be helpful. I respect your opinions and if you feel my site is not of use to borrowers that is your personal view. If you as a broker are not getting these prices than maybe you need to examine your lenders. Never be complacent . Lenders change like anyone else. But that is a different topic entirely.