How low can we go? 30 yr fixed at 3.75% with no fees...
- Thread starter ps99472
- Start date
irvinebullhousing
Well-known member
Many lenders play this game of ?Conditional Aprroval?, and drags their feet?s for months. Loan Depot is one of them and asking for endless paper.
Loan Depot is a NO GO.
We should start la list of flake lenders to save the hassle and exhausting work of getting personal info and sending it off to a black hole. Worse in the wrong hands and compromise your financial information.
Loan Depot is a NO GO.
We should start la list of flake lenders to save the hassle and exhausting work of getting personal info and sending it off to a black hole. Worse in the wrong hands and compromise your financial information.
serial refinancer
New member
Cares said:
It?s been crickets. No approval. No denial. No phone call. Emails go unanswered from the loan officer. They were super quick and response by email and phone call to collect paperwork and lock in the rate and e-sign. From that point on, it?s downhill. I searched Yelp and clearly this situation is not the first time as somebody already experienced the same.
Oh well...... at least I didn?t spend money
oc_dreamer
New member
I'll chime in here with my recent experience with owning.
A few months back I refinanced with Colossus Bank at 2.625% and no fees, and I was very happy with that.
However, rates continued moving down, so now I'm in the process of refinancing with owning.com at 2.125% and no fees. The closing was done quickly 2 weeks ago, but they have not funded the loan yet. The website for Colossus Bank still shows the entire balance.
I've emailed owning.com to ask what is the holdup, but they are not responding. I've googled about what to do in this situation where the loan funding is delayed or never happens, and of course found various horror stories.
If Colossus Bank does not receive the payoff by October 1, then I guess I'll go ahead and make the October 1 payment to Colossus. Otherwise, I'm guessing I'll get dinged for a late payment. Also, the funds from owning.com (if they ever come through) would be inadequate to payoff Colossus after October 1 (since all the closing paperwork assumed funding prior to October 1) and it would not include any interest for Colossus after October 1.
So, sort of a dog's breakfast happening here!
A few months back I refinanced with Colossus Bank at 2.625% and no fees, and I was very happy with that.
However, rates continued moving down, so now I'm in the process of refinancing with owning.com at 2.125% and no fees. The closing was done quickly 2 weeks ago, but they have not funded the loan yet. The website for Colossus Bank still shows the entire balance.
I've emailed owning.com to ask what is the holdup, but they are not responding. I've googled about what to do in this situation where the loan funding is delayed or never happens, and of course found various horror stories.
If Colossus Bank does not receive the payoff by October 1, then I guess I'll go ahead and make the October 1 payment to Colossus. Otherwise, I'm guessing I'll get dinged for a late payment. Also, the funds from owning.com (if they ever come through) would be inadequate to payoff Colossus after October 1 (since all the closing paperwork assumed funding prior to October 1) and it would not include any interest for Colossus after October 1.
So, sort of a dog's breakfast happening here!
sgip
Well-known member
Any company, from Big Banks (Wells, Citi, BofA) to Mortgage Bankers (Quicken, loanDepot, Guaranteed Rate) to micro broker shops (Barrington Financial, etc) are asked to provide the exact same level of basic documentation as everyone else does. Big Banks will have Big Guideline Overlays and can ask for considerably more documentation than other shops might, but on whole, the basic package is the same from company to company. The issue isn't with the funding lender's requesting of more information. Once the loan is approved, most closing processes are akin to landing a plane well on it's glide path. The issue with documentation and underwriting, the ask, and re-ask, and ask again for documentation lies with the originating Loan Officer, and no one else.
The best way to avoid these kinds of problems? When applying, perhaps using a call in center isn't the best way to handle complex applications. Pricing in call centers (Owning/Quicken/Fremont Bank and loanDepot) tends to be better because the staff is often new and not highly compensated. That reduced compensation goes into reducing the rate - the reason why many will apply with a low rate provider. If working with a loan officer directly rather than a high volume call center means .125 in rate, or $1,000 in fee more, it might be worth considering that route rather than chasing a very low rate but going through an immense hassle to get it.
The second best way to avoid processing issues? Ask the loan officer when they started in the business. If it's within the last 2-3 years, perhaps you might want to work with someone with a longer resume - someone who has seen more complex applications through successfully to closing than others may have. Each loan officer has an NMLS ID. You can look up their employment history here: https://nmlsconsumeraccess.org/ PM me and I can give you mine if your curious. I've been advised not to openly post it on blogging sites.
With high volume comes longer wait times. Processors in some cases have 100-300 files PER MONTH to close. It's not fair to the customer, or to the mortgage processing staff to be in this situation, but it's where the industry finds itself today. With high volume comes errors, duplication, and other crash and burn scenarios. It's not fun to be spun around during a loan processing, but you can avoid many issues by working outside of a call center environment and with a seasoned professional should your specific employment, cash, or property situation be complex in any way.
My .02c
The best way to avoid these kinds of problems? When applying, perhaps using a call in center isn't the best way to handle complex applications. Pricing in call centers (Owning/Quicken/Fremont Bank and loanDepot) tends to be better because the staff is often new and not highly compensated. That reduced compensation goes into reducing the rate - the reason why many will apply with a low rate provider. If working with a loan officer directly rather than a high volume call center means .125 in rate, or $1,000 in fee more, it might be worth considering that route rather than chasing a very low rate but going through an immense hassle to get it.
The second best way to avoid processing issues? Ask the loan officer when they started in the business. If it's within the last 2-3 years, perhaps you might want to work with someone with a longer resume - someone who has seen more complex applications through successfully to closing than others may have. Each loan officer has an NMLS ID. You can look up their employment history here: https://nmlsconsumeraccess.org/ PM me and I can give you mine if your curious. I've been advised not to openly post it on blogging sites.
With high volume comes longer wait times. Processors in some cases have 100-300 files PER MONTH to close. It's not fair to the customer, or to the mortgage processing staff to be in this situation, but it's where the industry finds itself today. With high volume comes errors, duplication, and other crash and burn scenarios. It's not fun to be spun around during a loan processing, but you can avoid many issues by working outside of a call center environment and with a seasoned professional should your specific employment, cash, or property situation be complex in any way.
My .02c
oc_dreamer
New member
oc_dreamer said:
Wow, I wonder if talkirvine is monitored by owning, because I just got responses from both my loan officer and processor! I'll paste them below in case anybody wishes to comment:
Response from loan officer:
We are now just waiting for funds to disburse to escrow. There is nothing left for you to do on your part or on ours. This may take up to a week or two to be completed as we are in line to disburse. We move faster than any other lender out there. Most lenders take 90+ days to fund in this market. I would never advise to not make your payment if you would like to do so for peace of mind. However, it is not late until the 16th so will have time to fund it by then. We will disburse before that timeframe.
We will honor the rate that we closed on and there?s no accrued interest to the new loan until we?ve funded/disbursed and the old loan interest will stop
Any overage from payment to your past lender will be sent back to you from them when we send the disbursement
Response from processor:
My funder cleared your file yesterday.
I just got email from upper mgmt regarding your loans and all other loans I have.
Per mgmt., it will takes 10-15 days for escrow company to disburse file ? they are extremely behind with covid-19, their staffs reduced by more than 50%
Your file: I cleared all underwriter?s and funder?s conditions. There is nothing left for me to do.
The interest on new loan and old loan will start and stop on the funding day so no, you will not be charge double interest.
Also, per mgmt., you do not have to make October mortgage payment to your current lender. We do have up to October 15 to send payoff $$$ to your current lender without incurred any late fees
Owning funded for me incredibly quick, maybe they are backlogged now.
And in other news got everything I needed from PNC to sign up online for payments, paid Oct 1st payment with no issues online and see it under their transactions. Hopefully others who get their loans sold end up with a decent servicer.
And in other news got everything I needed from PNC to sign up online for payments, paid Oct 1st payment with no issues online and see it under their transactions. Hopefully others who get their loans sold end up with a decent servicer.
usctrojancpa
Well-known member
Yeah, I'm glad I'm skipping this refi madness. Rates will be about the same next year or I'll look at refinancing when the volume has dried up a bit.
paperboyNC
New member
oc_dreamer said:
Crazy stuff!
irvinebullhousing
Well-known member
USCTrojanCPA said:
And it could still go lower. Then another mad rush.....never say never in this era.
usctrojancpa
Well-known member
Compressed-Village said:
I'm in no hurry, I have about 3 years left on my 2.625% ARM and if the loan were to reset today I'd still be at 2.625%.
sgip
Well-known member
Speaking of ARM loans.....
The transition of ALL ARM loans from LIBOR to SOFR (Secured Overnight Financing Rate) is starting. Assuming a 2.25% margin, an ARM loan tied to SOFR next year will likely be 2.25 to 2.40%, depending on adjustment month and average rate at the time.
Current Monthly SOFR is .08%, but average is currently 1.61, subject to drastic reductions in the next few months.
Current 1yr LIBOR average is 0.39%
My .02c
The transition of ALL ARM loans from LIBOR to SOFR (Secured Overnight Financing Rate) is starting. Assuming a 2.25% margin, an ARM loan tied to SOFR next year will likely be 2.25 to 2.40%, depending on adjustment month and average rate at the time.
Current Monthly SOFR is .08%, but average is currently 1.61, subject to drastic reductions in the next few months.
Current 1yr LIBOR average is 0.39%
My .02c
irvinebullhousing
Well-known member
Owning got a 510k loan at 1.75. What the heck is happening?
Now I am very scare.
Now I am very scare.
sgip
Well-known member
Remember, if you refinanced with Owning, they have a blackout before you can re-refinance with them.
A large mortgage banker recently went public and has been pushing these super low rates. I heard a radio ad Wednesday, Sept. 30th, for a 1.99 Rate AND 1.99 APR 15 year fixed rate. The kicker there is that if a broker or Mortgage Banker sent your loan through this particular funding lender (I believe it's UWM) that lender will not offer the 1.99 or perhaps a 1.75 deal to you. Their blackout period is 18 months!
The key at this moment to capture these very, very low rates is to let the lender you're speaking to know who funded your last mortgage loan. They may need to confirm who it was with prior to locking that super low rate for you.
My .02c
A large mortgage banker recently went public and has been pushing these super low rates. I heard a radio ad Wednesday, Sept. 30th, for a 1.99 Rate AND 1.99 APR 15 year fixed rate. The kicker there is that if a broker or Mortgage Banker sent your loan through this particular funding lender (I believe it's UWM) that lender will not offer the 1.99 or perhaps a 1.75 deal to you. Their blackout period is 18 months!
The key at this moment to capture these very, very low rates is to let the lender you're speaking to know who funded your last mortgage loan. They may need to confirm who it was with prior to locking that super low rate for you.
My .02c
irvinebullhousing
Well-known member
The facts that rates this low so quickly, indicating the economy is very, very weak. The fear factors risen substantially. Again low rate with low demands don?t mean good or recovery by any measures.
sgip
Well-known member
Not so much in this case. Owning popped up out of thin air to capture as much of the market as possible before anyone else could. My guess is that in 6-8 months once the cream has been separated from the milk, Owning will no longer cease to exist. They are a refi mill and nothing more.
UWM and Quicken are flush with investor funds and are trying to capture the market. They too will run out of steam at some point in time. Every so often you'll see a few big banks try and capture as much of a specific type of business as possible. This is what's driving rates lower and not economic conditions per se. I'm not saying the economy is NOT in trouble, I'm only saying this recent push down isn't driven by economics as we usually see in other refinance rallys.
My .02c
UWM and Quicken are flush with investor funds and are trying to capture the market. They too will run out of steam at some point in time. Every so often you'll see a few big banks try and capture as much of a specific type of business as possible. This is what's driving rates lower and not economic conditions per se. I'm not saying the economy is NOT in trouble, I'm only saying this recent push down isn't driven by economics as we usually see in other refinance rallys.
My .02c
irvinehomeowner
Well-known member
I think I've asked this before but as anyone refi'd with HMS Capital? I hear their ads on the radio just as much as Owning.com.
nosuchreality
Well-known member
So on a up to $510K loan with sheet rate of 2.25% and APR of 2.413%, that's about $12,000 in out of pocket costs?
usctrojancpa
Well-known member
Soylent Green Is People said:
Let the lenders compete and grind rates lower to capture share. I think this will happen more so if rates stay flat or slightly increase and purchase and refi loans begin to dry up. Afterall, these big public lenders flush with cash need to pay for their overhead and employees.