<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=575641436289750&amp;ev=PageView&amp;noscript=1">

How to get 100% VA financing with your eligibility tied up!

Lots of BAD Intel

You are about to read a story about a travesty of justice with regards to VA Loans.  Too dramatic?  I don't think so.  Credit unions and inexperienced loan officers are giving out wrong information and bad advice to our Service-members and Veterans.  There is so much bad Intel, but I'm here to talk about the Coup-De-Gras... the brutality of brutalities: Using your VA Home Loan benefits again even if they are "in use".  

Read More

How lenders have changed the way their customers refinance

Everything's changed

You can't lock, can't rush, and you'll have some work to do, but most lenders are giving some big perks to borrowers under the new loan refinance system.  This new "how you refinance" may become the staple system for years to come.  Personally, I think our industry has figured out a great way for the consumer to take control of their own destiny and truly become a partner with their lender.  Here's how it works.

Read More

Mortgage Industry on the brink of collapse

A stolen headline

Yes, I stole this headline because it is so impactful... and TRUE.  CNBC has been following this story on the continual ramifications of COVID-19 on the mortgage and financial system.  In my opinion, this will end up being worse than the financial crisis of 07-08 by far.  The foundation of mortgage lending has started to crack all across the industry.

Read More

Mortgage Crisis and Fed Unintended Consequences

It's not a rate lock, it's a rate promise

And that, my friend, is why we are all in trouble.  Unbeknownst to many, lenders are getting crushed in an environment that should have been all fairy tales and sunshine.  My friend, Barry Habib, CEO of MBS Highway, wrote a compelling article (see below) that is a must read for anyone wanting to understand the current mortgage crisis and what is next for home owners.  Here is the link on his site: https://mbshighway.com/mortgage-crisis.html

Read More

High Refinance Demand, No Lender Supply. What to do?

Over 5 Trillion in Mortgages

That's right.  It is estimated that of the 11 Trillion mortgages in America, approximately 5 Trillion qualify for a refinance.  Allow me to put this in perspective.  In a really GOOD year of refinances, you may have 1 to 1.5 Trillion in refinances.  That's ALL YEAR.  Now imagine the capacity (and liquidity) challenges facing lenders when trying to fund a huge number like that but only in a mere matter of months!  It can't be done.  

Read More

How to not lose Purchasing Power in a rising interest rate market!

Are Rates really 2% or more higher?

The short answer is YES and NO.  Not every lender was positioned to handle this crisis.  It pains me to see some of my colleagues in the business be priced out of the market because their company is in a severe cash crunch.  This soon will pass, but at this moment, there exist the biggest variance in rates among lenders that I've ever seen.

Read More

The Refinance CRASH of March 18, 2020

My Sore Displeasure

Just when I thought last week was the worst week that ever hit the mortgage business, yesterday happened.  Everything tanked and the mortgage markets almost collapsed resulting in a major change in rates for those that are refinancing.  Please note that if you have locked your rate, then this will not apply to you.  Also, if you are purchasing a home, lenders are still in business, but I would check on rates! 

Read More

The Fed Says they will do "whatever it takes"

Whatever it takes...

They feel like some famous last words.  Words that mark the near end to super-low rates in mortgages.  Bear with me as I take you through some of the more recent turn of events and what it means to you.

Read More

Fed slashes target rate to 0%. How will this affect mortgage rates?

A Common Theme: Stability

Between my phone ringing every 30 to 60 seconds, below I will attempt to relate what is happening in the financial markets and what it means to mortgage interest rates.  But, before I begin, please note a common theme: STABILITY.  Any action taken by the Fed is to support stability in the financial markets and support the flow of credit to households and businesses to achieve their goal of maximum employment and price stability. This is their mandate.  

Read More

The Mortgage Market crash of March 2020 and what it means to you!

What just happened!?

This has been a pretty awful last several days.  The mortgage markets have crashed... the secondary markets have been shaken.  In some cases, interest rates have gone up over a full percent in a matter of days.  What happened and what does this mean for you? 
I want to talk about 3 things.  Lender Capacity, Lender Liquidity and the Danger that remains.  I will also issue a warning and advice based on my personal experience going through some very similar times, i.e. the financial crisis of 2007-08.


March 2, 2020.  It all started with lenders getting too busy.  Rates dropped so fast, there were estimations that over 90% of all mortgage holders qualified for a refinance.  Lenders went over-capacity in a matter of days and then it was chaos.  Lenders (and their loan officers) could not keep up with all the refinance requests.  They just didn't have the manpower, or capacity, to handle the business.  Then it became a liquidity issue.  Those same lenders realized quickly that they would not be able to fund all these refinance applications, so they had to increase rates or stop taking refinance applications all together.  Extreme measures were put in place immediately.  Then things got worse.
(Caption courtesy MBShighway.com)
Read More