|
Re: Mortgage Options
Originally Posted by Giantaxe
(Post 12369203)
In California, at least, you must be notified if your loan is sold. My current loan was sold almost immediately to Fannie Mae, but the bank - as you point out - still services the loan.
|
Re: Mortgage Options
I'm enjoying the discussion around what is called the secondary market, which is where I work.
There are a gazillion mortgage brokers, hundreds of loan originators, a few dozen big banks, and the 3 gov agencies, Fannie Freddie & Gennie. Almost all mortgages end up in MBS -mortgage backed securities, at one of the agencies- called Pools of a few to hundreds of mortgages, and get traded on Wall Street. Each agency has (almost) identical requirements to purchase a pool. The loan docs are certified by an agent and stored in a vault in an office like mine, till paid off or sold on. The money made by the lender on the interest is of minimal consequence. The real money is made by selling the whole loan at a percentage of face value on a daily basis. I and my coworkers get paid for certifying that the docs are what they are supposed to be, sending the wires to the next purchaser, and sending the docs elsewhere sometimes. It's literally paper pushing! Then lots of borrowers default, and the house of cards collapses again.... Earlier I mentioned 5% but as others said 4% is realistic currently. I hardly ever see rates over 4.75 in the last few years, and 3.75 is not uncommon. I look at up to 100 loans a day nationwide. |
Re: Mortgage Options
Originally Posted by RICH
(Post 12370317)
.... There are a gazillion mortgage brokers, hundreds of loan originators, a few dozen big banks, and the 3 gov agencies, Fannie Freddie & Gennie. ....
|
Re: Mortgage Options
Originally Posted by RICH
(Post 12370317)
I'm enjoying the discussion around what is called the secondary market, which is where I work.
There are a gazillion mortgage brokers, hundreds of loan originators, a few dozen big banks, and the 3 gov agencies, Fannie Freddie & Gennie. Almost all mortgages end up in MBS -mortgage backed securities, at one of the agencies- called Pools of a few to hundreds of mortgages, and get traded on Wall Street. Each agency has (almost) identical requirements to purchase a pool. The loan docs are certified by an agent and stored in a vault in an office like mine, till paid off or sold on. The money made by the lender on the interest is of minimal consequence. The real money is made by selling the whole loan at a percentage of face value on a daily basis. I and my coworkers get paid for certifying that the docs are what they are supposed to be, sending the wires to the next purchaser, and sending the docs elsewhere sometimes. It's literally paper pushing! Then lots of borrowers default, and the house of cards collapses again.... Earlier I mentioned 5% but as others said 4% is realistic currently. I hardly ever see rates over 4.75 in the last few years, and 3.75 is not uncommon. I look at up to 100 loans a day nationwide. |
Re: Mortgage Options
Originally Posted by Pulaski
(Post 12370351)
Ginnie. ;)
|
Re: Mortgage Options
Originally Posted by petitefrancaise
(Post 12370355)
You will remember your pals on BE if you think everythings going tits up again won't you?? :fingerscrossed:
|
Re: Mortgage Options
Originally Posted by RICH
(Post 12370370)
Good grammar catch. Jenny is the term used around here, as is Fanny and Freddy.
|
Re: Mortgage Options
Originally Posted by Pulaski
(Post 12370372)
I wonder why, because it's always been Ginnie Mae, .... and "Fanny" has always been Fannie Mae, and "Freddy", Freddie Mac.
|
Re: Mortgage Options
Originally Posted by RICH
(Post 12370373)
Think in terms of speaking about them on a regular basis. Not the spelling.
|
| All times are GMT -12. The time now is 7:06 pm. |
Powered by vBulletin: ©2000 - 2026, Jelsoft Enterprises Ltd.
Copyright © 2026 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.