Home Loan Wholesale

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June 20, 2010

Thrifty Tips for Buying Internet Mortgage Leads

Today, most mortgage brokers that have less to spend so it is imperative that they buy leads cautiously.  Internet mortgage leads can be a very cost effective form of marketing if you know how to purchase leads from lead generation companies.  Be careful of how and where you purchase leads. Ask the account executive at the lead company what their minimums are and be cautious when buying leads in bulk.  If a lead company is generating 50 leads a day and 15 leads a day that meet your filters, you have to wonder how a lead company could send you 250 leads in a 3-day span.  Clearly these are either old or brokered leads. In a recent article, Bryan Dornan the founder of mortgage lead generation company, the Lead Planet reminded mortgage companies to “Consider more than just the cost per lead.”  Dornan suggests that “the cost per funding is the bottom line.”  See the original mortgage lead buying post at the Mortgage Lead Vault > Cost to Funding Ratio Matters with Mortgage Leads


August 10, 2009

Taylor Bean Freezes Wholesale Home Loan Division

Category: Broker Tips,Home Loan News,Mortgage Brokers – admin – 8:38 am

Taylor, Bean & Whitaker Mortgage Corp. lost its Freddie Mac approval and immediately halted their wholesale home loans operations. The company hopes a business restructuring will remedy its situation. The loss of Taylor, Bean and Whitaker as a wholesale lender is a major blow to U.S. mortgage brokers who say it means home loan applicants who were in process at the wholesaler will need to purchase new appraisals and potentially sit through new waiting periods. The action follows Taylor Bean’s suspension yesterday by the Federal Housing Administration and the Government National Mortgage Association or Ginnie Mae. 


June 5, 2009

Refinance or Mortgage Modification with Bad Credit or No Equity

In a recent article, California mortgage broker, Jeff Morris, formerly with GMAC and Ditech estimated that one in ten of homeowners who visit him online are able to get approved for a conventional or FHA-refinance.  Morris said, “People simply don’t qualify with the mortgage lenders tighter guidelines and lack of home equity.“ Borrowers seeking home refinancing, outside of California, Arizona and Nevada may have a better chance because fewer borrowers in the mid-west and south are under water with their mortgages being greater than their home’s value.  Even with mortgage lenders extending 97% FHA and 105% mortgage refinancing, California homeowners have little opportunities to be approved because home values have declined so significantly since they bought their properties years ago.   


The goal should be for homeowners to invest in a home that they can afford and if refinancing with a lower mortgage payment is an option, then borrowers would be foolish not to seize the savings opportunity. Morris added that “the demand for loan modifications has not waned and he sees an increase in loan workout requests for borrowers who are stuck in jumbo mortgage loans that have interest rates set to adjust.” The banks just aren’t handing out loan modification agreements to just anyone anymore.  Homeowners seeking foreclosure prevention alternatives from their mortgage lender must be able to document that they have the income to support the modified home loan payment. 


In Maui, Caleb Palmer, a broker, said “Consumers should stop whining about things they can’t control and focus the affordable home buying opportunities that have become available since the housing market crashed in 2006.” Palmer continued, “Mortgage rates were under 5% for thirty year fixed rate loans and inventories were beginning to open up in neighborhoods that haven’t been available for years.”  Palmer believes that 2010 will see more buying opportunities in Hawaii and California before the market shifts back to appreciation mode. 


In addition, if you’re older than 40, shortening your mortgage term now could help leave you mortgage-free in retirement, reducing the income you’ll need to generate from your battered 401(k).
But before you jump in, you should know that most single-family home loans today need to fall within Fannie Mae and Freddie Mac limits — up to $417,000 in most places, and up to $729,750 in certain high-cost cities such as San Francisco and New York. “Jumbo” mortgages, or those larger than those limits, are still very hard to find. Then you’ll need two crucial and tough-to-acquire bits of information: your credit score and your home’s current value. Those will determine whether you can refinance at all and how close you can get to the lowest rates available. Even then, you may find the process unusually long and unpleasant; some banks are taking up to 90 days to complete a refinancing.  If you got your current mortgage in the past few years, when less documentation was needed, you may be surprised by the financial colonoscopy that awaits you. You need pay stubs, bank statements, brokerage statements and maybe tax returns to convince the lender that you can and will repay the loan. If you’re self-employed, you may be asked for a profit-and-loss statement for this year; if you rely on bonus income, expect the lender to assume this year’s bonus will be a lot less than last year’s.


What is home equity? Having some equity in your house is essential to qualifying for a new mortgage loan. If your current mortgage is less than 80% of the value of your home or less than 75% of your condominium, you should have refinancing options as long as you don’t have late mortgage payments and bad credit scores.  Subprime refinancing and bad credit mortgage options have disappeared with the exception of VA and FHA loans.  VA home loans are only offered to military veterans and FHA mortgage guidelines require full income documentation and most bad credit home loan applicants need a stated income program.


If your mortgage is between 80% and 105% of your home value, you’re current on your payments and your loan was bought by Fannie Mae or Freddie Mac, you may be able to refinance under a two-month-old government program called “Making Home Affordable.” Some kinks are still being ironed out, and Fannie and Freddie have different requirements, so go to the program’s Web site at MakingHomeAffordable.gov or contact your mortgage servicer to see if you qualify.

Sometimes under this program, Fannie and Freddie will waive appraisals and other underwriting steps. And if you’re refinancing a Veterans Administration or Federal Housing Administration loan, a new appraisal isn’t needed. 


November 29, 2008

Credco Updates E-Commerce Features Online

Category: Broker Tips – admin – 2:20 am

First American CREDCO has replaced eCREDCO.com, the company’s dedicated e-commerce site, with an all new integrated online ordering and marketing website. The new site features expanded functionality that allows mortgage lenders and loan officers to order and track products more efficiently and the company to develop and deliver new products faster. The newly upgraded platform-http://www.CREDCO.com features a totally improved customer purchasing experience, supported by Direct-Connect customer support, simplified account administration and real-time product tracking. The new CREDCO.com features include streamlined ordering, direct-connect with customer support, access to multiple accounts with one sign-in, electronic document uploading, access to detailed pricing and transactions, search functions, free credit report reprints, real-time product tracking, simplified account administration and a credit card payment option.


October 3, 2008

Teaching Mortgage Brokers to Sell Hard Money

Category: Broker Tips – admin – 4:33 pm

Pitbull Mortgage School reported recently that in most cases, “mortgage brokers spend 50% of their time trying to find a hard money lender to fund their loan scenarios.” This simple flaw with the traditional mortgage broker business model is that “you are only good as the last mortgage loan you worked on”. Wouldn’t it be nice to receive residual income in addition to your brokering fees? This can be accomplished through creating a hard money client base and private placement memorandum. You not only gain considerable control of your future but also gain control of the underwriting process. In addition, you earn service fees and management fees as the fund manager. Essentially you become a hard money portfolio manager. Consider upgrading from a mortgage broker to becoming the mortgage banker. We have created an entire program to show you how this can be done. The Mortgage Loan Outlet offers hard money refinancing for borrowers with bad credit.