Loan Officers Concentrate On Purchase Mortgage Loans In 2014

Moe Bedard

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Loan Safe Mortgage
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Mortgage times are tough for many loan officers all across the country. In fact, this may be one of the most difficult times in the past 15 years to make a living in the mortgage industry. Unfortunately, it looks like things will not get easier anytime soon. The severe lack of borrowers not able to refinance their homes coupled with the lack of housing inventory has caused purchase loan originations to go down big time.

Those borrowers who can refinance with great credit scores are often tech savvy, and are able to shop rates in order to the best mortgage deal with the lowest fees. More often than not, these prime borrowers deal directly with bank loan officers or internet mortgage companies who are able to offer better rates on their prime or jumbo loans than loan officers who work for mortgage brokers or banks who broker loans. There are refis happening out there for many creative loan officers. More often than not, this business is coming from niche mortgage products such as FHA, VA , and even Alt-A or subprime niche mortgages. However, the refi business is slim and also very competitive making it difficult for everyone involved in these type of loans.

This is why many loan officers I have spoken with recently are targeting the real estate purchase mortgage market simply because their refinancing business has dried up. However, this is easier said than done since there is a severe lack of housing inventory and the mortgage market is still one of the most competitive as it has ever been.

To make it in today’s market, loan officers need to have thick skin, be creative and also the ability to adapt quickly to market changes. This is why in 2014, loan officers need to have a strong focus on marketing for purchase money leads and loan originations. If they are not, more than likely they will sink along with rest of the refinancing ship.

If you agree or disagree, please let your voice be heard below.

(Source: The Loan Safe Blog)
 

ccbarrcc

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Jul 21, 2015
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It's 2016 now, so the climate's a little different. I was wondering if you'd heard about the San Francisco Federal Credit Union extending 0% down loans for purchases of homes of about $2,000,000. There's no minimum credit score. I don't think they said they were no-doc loans, but what the heck, if the market is healthy, why not?
I'm guessing that the market is strong and the availability of work of the kind that supports payments and taxes on 2-million-dollar homes is good, but it still seems risky. Would the CU have especially strict terms in the contracts, or???


http://www.sfgate.com/business/article/Zero-down-payment-mortgages-are-back-in-S-F-6691931.php
 
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Moe Bedard

Call 1-800-779-4547
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Loan Safe Mortgage
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Yes, Erik wrote about the Poppy Loans just last week here at this link; http://www.loansafe.org/new-zero-down-mortgage-poppyloan

As Erik said, "the average household median income is $104,879, and the average median price for a home is a whopping $1.1 million. The average income here, coupled with the high price of housing in San Francisco, leaves little cash left over to buy a home, let alone a cup of coffee. I assume that’s why the San Francisco Federal Credit Union (SFFCU) came up with the PoppyLoan to help the cash poor community buy a home."

;)
 
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ccbarrcc

LoanSafe Member
Jul 21, 2015
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Yes, Erik wrote about the Poppy Loans just last week here at this link; http://www.loansafe.org/new-zero-down-mortgage-poppyloan

As Erik said, "the average household median income is $104,879, and the average median price for a home is a whopping $1.1 million. The average income here, coupled with the high price of housing in San Francisco, leaves little cash left over to buy a home, let alone a cup of coffee. I assume that’s why the San Francisco Federal Credit Union (SFFCU) came up with the PoppyLoan to help the cash poor community buy a home."

;)
Here's another one:
"Waterstone Mortgage unveils zero-down, 20-year, adjustable rate 'wealth building' loan"
(with PMI). Wealth-building only in the sense of the shorter amortization, which can be accomplished by paying down principle with extra contributions on a fixed rate 30 year loan. With fixed rates under 4% right now, I think this is an unnecessarily risky product.

Also, with zero down, the loan for a $500K house is based on a a balance of $500K, while a loan with 20$ down would have a balance of $400K, so you'd pay interest on 100K for 20 years that you wouldn't pay for the 30 years of a conventional fixed rate loan. That's $186,000 by my estimation, with the trade-off of opportunity cost on the $100K you sunk into the 30-year fixed, which could be considerable--in either direction.

http://www.housingwire.com/articles/36310-waterstone-mortgage-unveils-zero-down-20-year-adjustable-rate-wealth-building-loan