EPO Challenges May Take Their Toll more on some segments of the origination space than others. Today we talk with Clayton Collins – CEO of Housingwire about some one of the myriad of issues we have right now in the mortgage and real estate space.
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We need to go back to a 1 year soft prepay to have the borrower skin in the game. The Broker cannot limit the borrower activity for 12 months let alone the current 6 months.
That’s not a bad idea Michael! ~ Frank
If FHA and VA can have a 210 day no refinance period why can’t that be carried over to FNMA/FHLMC?
True. I think we’ll see big changes like this coming down the pipe soon. ~ Frank
I got very little from this video. Just a lot of oh crap, we’re screwed stuff. Somewhere, sometime there will be a savvy lender who scraps this EPO crap. Sure, their rates may suffer just a little but others may follow. I’d take my loans, especially refi’s, to a lender who waives EPOs as long as the cost wasn’t prohibitive. Or, maybe a wholesale lender could offer an EPO waiver with an upfront risk adjustment? Maybe .25 pts more?
finally, I’m a small refinance shop. I follow up with all my clients but especially clients who have refi’d in the last 5 months(I only use 6 month epo lenders). I run my possible epo clients past their current lender to give them first shot at it. If they want it and are OK with waiving the epo I’m on it. If not, I’ll take them elsewhere and at least get my original comp back so I’m not upside down too bad. jmo