In case you missed the story on the National Mortgage News website, here's a headline for you: Some firms have the ability to make $10,000 per loan on HARP 2.0 loans. A nice chunk of that profit estimate is tied to secondary market pricing. In short, Wall Street investors believe that HARP 2.0 loans have a very low likelihood of prepaying. Why? Answer: because the borrower is underwater or nearly so, but chances are he or she will keep paying, hence the secondary market premium. But another hitch is underwriting. We're told that some megabanks cranking out HARP loans are basically rubberstamping them – which means they're saving a ton of money on underwriting costs. As the old saying goes: make hay while the sun shines.
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While the latest data indicates ongoing demand, changes in the share of locks by category show consumers trying to adapt to market conditions, according to a report from Optimal Blue.
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The annual J.D. Power survey found last fall's rise in rates put the mortgage industry in a transition period that affected satisfaction, but that has rebounded as of late.
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The two companies will retain ties as Daniel Wallace moves to an operational leadership position at a time when non-agency mortgage opportunities are opening up.
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Homeowners across the nation could realize savings from as little as $20 per year to having their bill wiped out entirely.
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The company also saw a slight impact from changes to real estate commissions.
November 11 -
U.S. military veterans and active duty personnel have four mortgage industry participants looking to enhance their ability to take advantage of their benefits.
November 11