Today’s Industry Stats Out of Sorts

September 10, 2012   Refi, Videos   21 Comments

Share
, , ,

21 Responses to Today’s Industry Stats Out of Sorts

  1. Linda Bennett says:
    September 10, 2012 at 9:37 pm

    Thanks, Frank and Brian. There’s still lots of low-hanging fruit for the refi-train if a HARP-2 type product came out for the other 50% of the loans in America the non-FANNIE/FREDDIE loans. It amazes me that someone with an 804 FICO, nine years of spotless payment history, cannot refi the ‘underwater’ home. The payment would REDUCE the debt and make the homeowner even less likely to walk. It is a shame the Federal Reserve cannot figure out a way to reach this segment. The resultant ‘cash-in-pocket’ every month could go a long way towards stimulating the U.S. economy.

    Reply
  2. Mark Brown says:
    September 10, 2012 at 3:45 pm

    Guys-looks like you’ve straightened out the delivery issues. Congrats! I was getting cranky trying to find you. Also enjoy the graphics you work out (I’m assuming you have someone doing it for you). As for the background,you had it before, as I recall. Per yesterday, the appraisers here (CA Central coast) ARE over-conservative. Harder to find anyone at all willing to stick their neck out and not lowball the appraisal…to the detriment of all. We actually removed one yesterday, and added two we think might be able to get accuracy-in-lending going again.

    Lastly, the stats on refis are pretty well on, as far as I can tell. The fruit requires a stepladder (read “marketing”) but still is there.

    Keep the faith…all the people some, some==all, but in this business…many will cut you off at the knees for an eighth of a point, or just ’cause they’re cranky that day!

    Reply
  3. Ldec says:
    September 10, 2012 at 3:15 pm

    Hey, you can come pick our ripe fruit. RE appraiser for 20+years–most of my past brokers have gone by the wayside. Need refi ourselves but income ratio doesn’t meet up. Fica 800, 45% ltv, 3+years reserve.
    Sure, cater to those underwater or 540 credit scores, but by all means, let’s not touch the small business owners that have proven that they can manage their money.

    Reply
  4. Jack Martin says:
    September 10, 2012 at 2:01 pm

    My take on HARP– the HARP program has been a complete bust and not an influence on refinance stats. I am seeing 90% refinances 10% purchases; all of my competitors (wholesale) are at 2 weeks in underwriting due to volume; none of which are HARP by the way. It seems that Obama lied when coming out with the HARP news and sadly the majority of borrowers got less than approved eligible resulting in higher rates and limited investor appeal, or no HARP relief at all. Many borrowers ended up modifying. Our refi market, still has legs and will last another year, then Implode-0-Meter will once again be active. One final note:
    GO CHARGERS!

    Reply
  5. Michael Schumacher says:
    September 10, 2012 at 12:03 pm

    How is the industry handling the extreme decline of certified appraisers?

    Reply
  6. Tim Wesely says:
    September 10, 2012 at 9:48 am

    Hi Frank and Brian, What do I have to do to get you to come to Placer County? We would be glad to host the event.

    Reply
  7. competitionbenefitsconsumers says:
    September 10, 2012 at 8:51 am

    As you point out, and much like the news of the manipulation of the LIBOR, that dissapeared quickly, the same manipulation of rates exists in out own mortgage market. If rates had stayed in the 7.5% to 8% range, or closer to it, throught the 00′s as they had been in the 90′s, there would have been no bubble or bust. The reasoning for the low rates were the dotcom bust, then 9/11. Yes, it did stimulate the economy, but look at the hangover it caused! Manipulation makes the case for more manipulation and sure makes it easy to profit when you make the rules!

    Reply
  8. Gina says:
    September 10, 2012 at 8:46 am

    Great new look. Are you going to start wearing ties?

    Reply
  9. Tammi says:
    September 10, 2012 at 8:07 am

    AMEN!!

    Reply
  10. Gene Riemenschneider says:
    September 10, 2012 at 7:20 am

    The new look is somewhat confusing guys. But love the show today.

    Reply
  11. Jeff says:
    September 10, 2012 at 5:26 am

    Hey guys – I’m surprised that you didn’t mention what I see as the main reason that HARP/HASP refis are slowing … The arbitrary June 1st, 2009 date that the current mortgage has to be on the books at Fannie/Freddie. If they would remove that requirement, we’d ramp refis back up in a heartbeat.

    Reply
  12. JP TENBUSCH says:
    September 10, 2012 at 5:22 am

    In response to Dan above, it seems to be a couple of things. REO work has been giving us 2 to 5 a week over this period. The GSE’s are doing marketing appraisals prior to placing these on the market. When they sell, another appraisal is needed, typically by another appraiser.

    That, and some people can only do 2 a week with the insane AMC requests for never ending status updates and other assorted BS.

    Reply
  13. Rich Bonn says:
    September 10, 2012 at 4:31 am

    Barry, depending on when you initially financed your home, you may be able to get in on the FHA streamline refinance with discounted (aka old price) MIP, also with a significant reduction in MIP.

    As far as WHY the MIP increased… well, Wall street is NOT a beneficiary of MIP. In fact, the increase in MIP could hurt Wall Street, as it increased the monthly debt load of the borrowers for the mortgages, making them more likely to default. The increase in MIP was to replenish the FHA Mortgage Insurance fund. Now, I know you may think “thats good, they are paying for losses in the Federal Mortgage Insurance Program without using tax dollars” but unfortunately, thats not quite correct. As Frank and Brian pointed out some months ago, FHA was raiding the Mortgage insurance fund in order to finance some of its other, alternative activities.

    If you have any more questions, please feel free to contact me. my contact information can be found at my website http://www.richbonn.com

    Reply
  14. Dan Drelich says:
    September 10, 2012 at 4:22 am

    Do those refi numbers include all FNMA, Freddie, FHA, and VA, etc? If we assume that 300k refis per month is some sort of average and also assume that every refi requires an appraisal, this is how busy appraisers should be (just refis): Follow the math: 100,000 licensed appraisers in country, but no more than 75,000 doing residential. 300k/75k = 4 per month = 1 per week. Sales aren’t too strong, but let’s double the number anyway. That would equate to 2 assignments per week for each appraiser in the country. Something’s wrong….appraisers have been much busier than that over the past year. Where’s all that additional business coming from?

    Reply
  15. Barry Butler says:
    September 10, 2012 at 1:34 am

    My retirement income is the same as when I originally financed my house. My debt has increased. Refinance doesn’t seem possible in light of:

    FHA MIP has doubled. Therefore my effective rate is that same or only slightly lower even though the APR is lower.

    Why did the MIP increase? Another Obama capitulation to Wall Street?

    Reply
    • Rich Bonn says:
      September 10, 2012 at 5:18 am

      Barry, depending on when you initially financed your home, you may be able to get in on the FHA streamline refinance with discounted (aka old price) MIP, also with a significant reduction in MIP.

      As far as WHY the MIP increased… well, Wall street is NOT a beneficiary of MIP. In fact, the increase in MIP could hurt Wall Street, as it increased the monthly debt load of the borrowers for the mortgages, making them more likely to default. The increase in MIP was to replenish the FHA Mortgage Insurance fund. Now, I know you may think “thats good, they are paying for losses in the Federal Mortgage Insurance Program without using tax dollars” but unfortunately, thats not quite correct. As Frank and Brian pointed out some months ago, FHA was raiding the Mortgage insurance fund in order to finance some of its other, alternative activities.

      If you have any more questions, please feel free to contact me. my contact information can be found at my website http://www.richbonn.com

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Twitter Users
Sign in with your Twitter account by clicking the button below.