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Hal M. writes, “Monday is a holiday. The observance reminded me of the small Italian parade we had in Maine on Columbus Day. All the marchers were under 5 foot 4.” Bah dah bum. Clients come in all shapes and sizes. An experienced loan originator will tell you, “Never tell a client about a problem until you’ve solved it.” An originator will also, when talking to a client, show them that their timing matters more than market timing. Put another way, home price appreciation is earned by buying a place and holding it, rather than timing the purchase based on interest rates. Roughly speaking, there are 4.8 million real estate sales in a given year, and 3.6 million of them will have a loan. Figure about 1.3 million refinances, which gives us a total of about 4.9 million mortgage transactions. These include debt consolidation refinances, moving out of 3 percent loans but paying off 30 percent credit card debt with a 7.5 percent loan. Originators are telling

Automated AOT, TPO, Appraisal Fee, LOS Products; Labor Data Pushes Rates Higher

Automated AOT, TPO, Appraisal Fee, LOS Products; Labor Data Pushes Rates Higher
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While here in Denver I received an email. “Rob, does what’s going on in Florida impact lenders?” I had to figure out if the author was asking about Disney/DeSantis, new Florida Man news, climate change, or insurance issues. Florida has a lot of cool things: manatees, Dry Tortugas National Park, Epcot Center, and cigar rollers in Tampa who do parties. Unfortunately it now has an additional insurance fee, as Florida has imposed a 1 percent “emergency” fee to property insurance premiums due to property-insurer insolvencies. Lenders in Florida often mention the Agencies, including HUD, and loan amounts. More specifically, many people living in Florida (“locals”) couldn’t buy their own homes due to wages versus values. Many of the Florida home loans that LOs have crossing their desks are now true jumbos. Buyers don’t get much in Tampa for $700k, and eastern Florida is worse. The loan limits are out of adjustment for the locals.

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