Real Estate
Sponsored by

Mortgage Markets

5,561 Views | 19 Replies | Last: 4 yr ago by hbc07
Red Pear Realty
User Profile
Private Message
How long do you want to ignore this user?
24 hours One week Permanently Cancel
5:19p, 3/18/20
Sponsor
AG
I was told by a lender just now that the mortgage markets temporarily shut down completely today. When they came back up, rates had risen 100 bps. Is this right? Are rates in the 4's now? First time I've ever spoken with this guy so I have no idea if this is right or not.
Sponsor Message: We Split Commissions. Full Service Agents in Austin, Bryan-College Station, Dallas-Fort Worth, Houston and San Antonio. Red Pear Realty
Reply Quote
H2SAag
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
6:34p, 3/18/20
AG
Rates shot up today in trading afternoon. Almost 1% difference bond market and stock market are not playing nicely. Rates are around 4.375% this afternoon. 4.25% on the bi-weekly program. Hoping they lower in the near term


That was in an email response from a lender today.
No material on this site is intended to be a substitute for professional medical advice, diagnosis or treatment. See full Medical Disclaimer.
Reply Quote
Red Pear Realty
User Profile
Private Message
How long do you want to ignore this user?
24 hours One week Permanently Cancel
6:46p, 3/18/20
Sponsor
AG
Thanks. I was concerned this was a 2008 style shut down in the mortgage markets. Sounds like that is the case.
Sponsor Message: We Split Commissions. Full Service Agents in Austin, Bryan-College Station, Dallas-Fort Worth, Houston and San Antonio. Red Pear Realty
Reply Quote
Diggity
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
9:15p, 3/18/20
Jay@AgsReward.com
User Profile
Private Message
How long do you want to ignore this user?
24 hours One week Permanently Cancel
8:32a, 3/19/20
Sponsor
AG
It is simply supply and demand in the agency world. There are simply too many mortgage backed securities for the market to absorb. The fed is going to step up their buying to help with the issue so we will see. The non-QM market is drying up and it looks a bit like 2008 in that (relatively) small part of the business and it is tiny compared to the sub market business in 2008 so nothing systemic but still not good. There is simply no liquidity.
Sponsor Message: AgsReward.com - See Reviews and Check Our 5-Star Rating on Shopper Approved.
Reply Quote
1 edit
Deats99
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
8:41a, 3/19/20
AG
I am not excited about it, but this is not 2008. The only secondary markets that shutdown yesterday were nonQM. It is getting crazy but not 2008 crazy.
A good plan violently executed now is better than a perfect plan executed next week.
-George S Patton
Reply Quote
1
94chem
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Deats99 • 8:59a, 3/19/20
Deats99 said:
I am not excited about it, but this is not 2008. The only secondary markets that shutdown yesterday were nonQM. It is getting crazy but not 2008 crazy.


2008 was deliberately caused by banks. Naturally, people who were involved in real estate or investment banking thought it was the worst event in world history. Yes, the Dow dropped 50% and the global economy slowed, but once the bailouts started, the printing presses got rolling, and the bonus babies realized they weren't in any real trouble, things began creeping back to normal. We never stopped travelling, eating out, making consumer goods, or buying energy. 2008 certainly furrowed the brows of fat cats, people about to retire, and immoral perpetrators. But for the most part, people at Chuck E. Cheese and the car wash weren't too concerned. This Covey could go a lot of different ways...2008 isn't even close to worst case scenario.
Reply Quote
Deats99
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to 94chem • 9:57a, 3/19/20
AG
94chem said:
Deats99 said:
I am not excited about it, but this is not 2008. The only secondary markets that shutdown yesterday were nonQM. It is getting crazy but not 2008 crazy.


2008 was deliberately caused by banks. Naturally, people who were involved in real estate or investment banking thought it was the worst event in world history. Yes, the Dow dropped 50% and the global economy slowed, but once the bailouts started, the printing presses got rolling, and the bonus babies realized they weren't in any real trouble, things began creeping back to normal. We never stopped travelling, eating out, making consumer goods, or buying energy. 2008 certainly furrowed the brows of fat cats, people about to retire, and immoral perpetrators. But for the most part, people at Chuck E. Cheese and the car wash weren't too concerned. This Covey could go a lot of different ways...2008 isn't even close to worst case scenario.
Are you ****ing kidding me? Bankers deliberately caused 2008? Why the hell would a drug dealer purposely kill all of his clients and suppliers?
A good plan violently executed now is better than a perfect plan executed next week.
-George S Patton
Reply Quote
9
jja79
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to 94chem • 10:01a, 3/19/20
AG
Can you explain how banks deliberately caused the situation in 2008?
Reply Quote
11
Deats99
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
10:02a, 3/19/20
AG
In 2008, the global credit markets actual locked up. GE could not get credit to meet payroll if they needed it. This **** right now looks scary because people can see and feel it, last time they had know clue how close we were.
A good plan violently executed now is better than a perfect plan executed next week.
-George S Patton
Reply Quote
Build It
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
9:06p, 3/24/20
AG
Where are we at today? Any movement lower?
Reply Quote
1
Jay@AgsReward.com
User Profile
Private Message
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Build It • 4:52a, 3/25/20
Sponsor
AG
some movement down the last few trading days, but still incredibly volatile.
Sponsor Message: AgsReward.com - See Reviews and Check Our 5-Star Rating on Shopper Approved.
Reply Quote
Red Pear Realty
User Profile
Private Message
How long do you want to ignore this user?
24 hours One week Permanently Cancel
8:46a, 3/25/20
Sponsor
AG
Anybody originating new residential or commercial construction/development loans?
Sponsor Message: We Split Commissions. Full Service Agents in Austin, Bryan-College Station, Dallas-Fort Worth, Houston and San Antonio. Red Pear Realty
Reply Quote
Tmoneyag99
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
4:07p, 3/30/20
AG
Anyone seeing rates for a 30 year refinance less than 3.5% right now (without buying down)?
Reply Quote
Jay@AgsReward.com
User Profile
Private Message
How long do you want to ignore this user?
24 hours One week Permanently Cancel
4:57p, 3/30/20
Sponsor
AG
yes Tmoney.
Sponsor Message: AgsReward.com - See Reviews and Check Our 5-Star Rating on Shopper Approved.
Reply Quote
1
texpert68
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
10:23a, 4/3/20
AG
Can someone explain to me the equation used to calculate if a refi will be worth your while?

ETA: in terms of length of time needed to recoup your refi closing costs.
Reply Quote
1 edit
Diggity
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to texpert68 • 10:32a, 4/3/20
AG
just figure out how much the refi costs will be (origination, appraisal fee, title policy, escrow, points, etc) and divide that into monthly savings. That will be your payback period.

$3,000 closing costs
$120 monthly savings

Payback period (break-even)= 25 months
Reply Quote
1 edit
Jay@AgsReward.com
User Profile
Private Message
How long do you want to ignore this user?
24 hours One week Permanently Cancel
8:26a, 4/6/20
Sponsor
AG
Good explanation of what is going on with servicers which is very much effecting loan pricing for everyone right now:
https://www.cnbc.com/video/2020/04/06/mortgage-industry-on-the-brink-of-collapse-coronavirus-economy.html
Sponsor Message: AgsReward.com - See Reviews and Check Our 5-Star Rating on Shopper Approved.
Reply Quote
Bobcat-Ag
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Jay@AgsReward.com • 9:07a, 4/6/20
That is very interesting and I came away with a couple of questions.

-What happens if the servicers don't get helped out and provided liquidity? Would they go bankrupt?
-If a servicer goes bankrupt, what happens to the mortgages? Are they called? or just sold to another servicer?
Reply Quote
Jay@AgsReward.com
User Profile
Private Message
How long do you want to ignore this user?
24 hours One week Permanently Cancel
1:48p, 4/6/20
Sponsor
AG
Yes, without liquidity from Treasury or the Fed at least some servicers will go bankrupt. It depends on how many people pile into the forbearance that really had no income loss due to the virus. There is no requirement to proof hardship to receive the forbearance, even though that is the intent, the more people who can pay but simply decide not to (even though you simply owe in after the forbearance period on conventional loans, so no free lunch so to speak) the more pressure will be on the ENTIRE mortgage system including resulting in higher rates.

and notes will not be called in you servicer goes into BK. The loan is fine other then a likely headache. Servicing is generally an asset, although due to the above, it is currently a liability. But, I suspect the servicing rights would be bought out of BK by other servicers.

Sponsor Message: AgsReward.com - See Reviews and Check Our 5-Star Rating on Shopper Approved.
Reply Quote
hbc07
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Jay@AgsReward.com • 7:52p, 4/6/20
AG
Jay@AgsReward.com said:
and notes will not be called in you servicer goes into BK. The loan is fine other then a likely headache. Servicing is generally an asset, although due to the above, it is currently a liability. But, I suspect the servicing rights would be bought out of BK by other servicers.

Correct. The most recent example I can think of is Ditech/Green Tree going into their second BK last year, and then their servicing rights being sold to (for the most part) NewRez d/b/a Shellpoint.

But that was when things were good. When things are good there will always be another servicer looking to continue to expand their portfolio or an upstart looking to gain a toe hold. However now, I'm not so sure what'll happen.
Reply Quote
Refresh
Page 1 of 1
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.