5-29 – ‘The Day After’ the Interest Rate Spike
FRIDAY, MAY 29TH, 2009 | BY MR. MORTGAGE
After the Rate Spike — Mortgage Operations Turmoil…Kick out the Dead Loans Now
Rates are all over the map as lenders assess the damage and price cautiously. Now, it is a mad dash to only focus upon the loans that are locked and have a chance of funding. If the locked loans are not funded quickly and the interest rate complex continues to experience this extreme of volatility, serious losses can occur.
The letter below was just sent by a national bank’s wholesale department this afternoon. This is the mortgage operations nightmare I highlighted in Thursday’s report. In a nutshell, they are kicking aside everything that is not locked or not a purchase in contract.
This is the desperation move that overworked, understaffed mortgage divisions have to make in order to salvage what can be salvaged and fund the loans that can fund in the shortest amount of time possible — preferably before the end of the rate lock.
Kicked aside could be at least half of their past two month’s of unlocked, unfunded originations that may ultimately parish if rates don’t come back quickly…or if the borrower can’t be coaxed into an 3/1 or 5/1 intermediate-term hybrid ARM, which are now at about the same interest rate level as a 30-year fixed was at the beginning of the week. Shortening duration is now an option where two months ago it was not.
If you have a Refi or a Purchase Mortgage in the pipeline then kiss it goodbye! All the Banks Rate Locks have turned into Radioactive Dust and If you don’t believe me then call you Bank?Mortgage Broker this morning. The collapse of the Mutant Asset Bubble is accelerating!
Today’s FGVOTD is a tribute to InsertSnappyNameHere (Snappy PBL), who announced late in yesterday’s Open Thread that…
SHE GOT A JOB!
Great news Snappy. We are all very happy for our newly employed PLUSA. I was going to post the obvious possible selections for today’s FGVOTD, such as She Works Hard for the Money, 9 to 5, etc. However, I decided to go with something much more special. It combines my all-time favourite band with the word “work” in the title.
This music never gets old to me. And the expressions between Paul and John are priceless, especially right at the end, as are John’s impish grins – he looks like he knows something Paul doesn’t know. I love this video.
Thanks Slopey!
Has anyone seen Adam Dahill????
http://www.thefieldcheckgroup.com/blog/
5-29 – ‘The Day After’ the Interest Rate Spike
FRIDAY, MAY 29TH, 2009 | BY MR. MORTGAGE
After the Rate Spike — Mortgage Operations Turmoil…Kick out the Dead Loans Now
Rates are all over the map as lenders assess the damage and price cautiously. Now, it is a mad dash to only focus upon the loans that are locked and have a chance of funding. If the locked loans are not funded quickly and the interest rate complex continues to experience this extreme of volatility, serious losses can occur.
The letter below was just sent by a national bank’s wholesale department this afternoon. This is the mortgage operations nightmare I highlighted in Thursday’s report. In a nutshell, they are kicking aside everything that is not locked or not a purchase in contract.
This is the desperation move that overworked, understaffed mortgage divisions have to make in order to salvage what can be salvaged and fund the loans that can fund in the shortest amount of time possible — preferably before the end of the rate lock.
Kicked aside could be at least half of their past two month’s of unlocked, unfunded originations that may ultimately parish if rates don’t come back quickly…or if the borrower can’t be coaxed into an 3/1 or 5/1 intermediate-term hybrid ARM, which are now at about the same interest rate level as a 30-year fixed was at the beginning of the week. Shortening duration is now an option where two months ago it was not.
If you have a Refi or a Purchase Mortgage in the pipeline then kiss it goodbye! All the Banks Rate Locks have turned into Radioactive Dust and If you don’t believe me then call you Bank?Mortgage Broker this morning. The collapse of the Mutant Asset Bubble is accelerating!
The What (Thanks for playing, NEXT!)
Someday this war is gonna end…
ROFL Biff!
Gemini…I’ll be relieved once I cash the first paycheck!
Great news snappy!
“Can I keep honorary PLUSA status???”
Snappy, you can keep your honorary PLUSA status and The What can keep his ornery PLUSA status and DIBS can keep his horny PLUSA status.
what a relief Snappy!
congrats you must feel so much more at ease now!
Good morning fellas and thanks 🙂 This of course means that I will become a stranger to the OT 🙁 Can I keep honorary PLUSA status???
CONGRATULATIONS SNAPPY.
Today’s FGVOTD is a tribute to InsertSnappyNameHere (Snappy PBL), who announced late in yesterday’s Open Thread that…
SHE GOT A JOB!
Great news Snappy. We are all very happy for our newly employed PLUSA. I was going to post the obvious possible selections for today’s FGVOTD, such as She Works Hard for the Money, 9 to 5, etc. However, I decided to go with something much more special. It combines my all-time favourite band with the word “work” in the title.
This music never gets old to me. And the expressions between Paul and John are priceless, especially right at the end, as are John’s impish grins – he looks like he knows something Paul doesn’t know. I love this video.
Enjoy:
http://www.youtube.com/watch?v=59NNupminV8