Mortgage Options
Oct 26th 2017 | 12:47 pm
#16
Lost in BE Cyberspace
Joined: Jul 2008
Posts: 7,456
From: Portlandia Metro
Re: Mortgage Options
I think that is true nationally. However I never remember whether my loan went to Freddie or Fannie. I think the original was Fannie then the refi went to Freddie.
Oct 28th 2017 | 9:43 am
#17
BE Irregular
Joined: Jan 2004
Posts: 4,959
From: Tampa Bay Florida
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.
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.
Oct 28th 2017 | 1:27 pm
#19
Austin. TX.
Joined: Sep 2013
Posts: 5,948
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.
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.
Oct 28th 2017 | 3:07 pm
#22
Joined: Dec 2001
Posts: 53,356
From: Dixie, ex UK
Re: Mortgage Options
Oct 28th 2017 | 3:12 pm
#23
BE Irregular
Joined: Jan 2004
Posts: 4,959
From: Tampa Bay Florida
Re: Mortgage Options
I wonder why, because it's always been Ginnie Mae, .... and "Fanny" has always been Fannie Mae, and "Freddy", Freddie Mac.
