Talk about msessing with consumers. You pick a lender, he runs your credit, then your fuzzy credit bureau sells you to the Trigger List. You get bombarded with 1% interest rate phony balony pseudo loan officers who can’t make a living as an independent or bank professional. They become phone sales con men I call them. The can’t cut it in the professional loan world, so they follow up leads. This needs to be flushed and I predict it will be. As if the credit bureaus weren’t making enough oney. Heck Experien paid over $400,000,000 for a lead generator LowerMyBills.com. Enough of this. We need our buddy Zorro here. Lar
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Pardon me for labeling our story with your name John, it has no special meaning other than your comments caused me to be accountable for the claim I made to lock. I do appreciate your taking me on, really.
The Unethical and Immoral factor in this title is probably going to result in some major law suits against the credit bureaus by lenders. I hear it may even become a class action law suit situation.
Unethical and Immoral is by my definition, you draw your own conclusions.
What I am writing of is this: It has come to my attention that once a lender pulls a credit report for a borrower the credit bureaus are selling this situation as a hot lead to numerous of their preferred mortgage bank customers.
So lets apply it to John. John is purchasing a home. We have to close December 22nd. The seller has a new home in process, that seller needs the funds to close. All parties have planned this closing meticulously; friends to help move, the only U haul in town is reserved, utilities are notified, and the drill goes on and on.
John has been blitzed with offers from banks that have bought this lead. He has no idea of the quality or integrity of the lenders. He does know they are offering great rates. I mean great rates. Well now what? Our journey has not led John to a better rate. What does he do? Find out tomorrow. Larry Cragun
I do believe it is unethical and immoral for a credit bureau to sell the fact my client has a transaction in process to my competitors. I paid for the report. Unethical for sure. I see a law suit coming. Not from me.
No commentsWhat do I mean by the heading up 1/8% and down 1/8%? Today we had a slight upward shift in the rates (1/8%) but our boy John Daly is within 10 days of the closing date. With a 10 day lock he can have that 1/8% back. The shorter the time period of the lock the lower the rate (usually). Now it gets real sweaty for the professional loan officer.
John wanted to float. That is obviously for a better rate. Well he can have an 1/8% better rate if we can close in 10 days. Close means funded. From today to close we must have all conditions signed off by the underwriter. For example: the appraisal should have been reviewed by the underwriter and perhaps there is a problem with it. It isn’t unusual to see the underwriter ask for another comparable to be provided by the appraiser. Maybe the value is in question and finding one more home sold that is similar could help support the value. All conditions like this must be provided and accepted before documents can be drawn.
Once conditions are signed off and the loan is cleared to close, the loan must be locked, the documents created, an appointment for signing at escrow, the signing, the signed documents returned to the bank funding department for review, the money ordered and wired to the escrow company, approval to record and fund, and finally funding.
Are we ready for a 10 day lock? That is the only way John gets a better rate. What happens if all of the above takes 11 days? In this case John could lose his rate. He is at the mercy of the lender. It is not unusual for the lender to extend the lock but raise the rate or the fees a little bit. If that happened it could be worse for John. My advice, lock for longer period than 10 days if you are locking today or continue to float. It is the customers responsibility to make this decision. Not the loan officers.
What would you do? John if you are there, what would you do? Larry
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Let us realize that the privilige to work is a gift, the power to work is a blessing, and that love of work is success. David O McKay
No commentsA rare bit of good news from the beltway: Early last Saturday morning, congress passed a “tax extender” package that included the deductibility of mortgage insurance on new mortgages originated in 2007. Though this is great news, and a long anticipated change, there are some restrictions, so not every homeowner will benefit. The rules, as we understand them, follow:
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In the middle of the night Santas Elves did overtime.
Sea-Tac airport
Seattle Times staff reporters
The holiday trees that went away in the middle of the night are back.
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Today’s rates: no change. John Daly Score: The same as when we started on 12/22. Is it worth the gamble? You decide. Instead of having a peaceful two plus weeks, a serious rate player would be spending too much time watching the market that no one can predict with certainty.
So we move forward. Should you lock today? Six days left. My Oh My. We must lock on the 18th at the very latest. That date makes it tight for a 12/22 closing. Larry
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Don’t be fooled! Many banks will write a pre-qualification letter which is not worth the paper it is written on. Pre-qualification letters can be written without even reviewing a credit report, which is often the most critical factor.Advantages of Pre-approval for Buyers
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