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pnthomasjr
9 Posts |
 Posted - 04/01/2008 : 11:01:19 AM
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| My FHA cord. is telling us that the guidlines changed only allowing 1 origination max and no discount unless its actually a discount. Is this april fools or real? |
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mantixmortgage
2660 Posts |
Posted - 04/01/2008 : 11:03:48 AM
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| its real |
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gsnyc
24 Posts |
Posted - 04/01/2008 : 11:04:45 AM
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| The origination limit is because of discrimination. This way it's the same accross the board. And the discount fee is supposed to be bonafied too. |
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lukyk22
1689 Posts |
Posted - 04/01/2008 : 11:04:59 AM
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| yep its real |
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Scrooge McDuck
7476 Posts |
Posted - 04/01/2008 : 11:06:34 AM
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| is this for eevery lender? |
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pnthomasjr
9 Posts |
Posted - 04/01/2008 : 11:06:54 AM
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| is there any website i can read up on this? |
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Carpet Muncher
1370 Posts |
Posted - 04/01/2008 : 11:08:25 AM
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| The way FHA is priced with most lenders there is opportunity for plenty of YSP. Why would you need more than 1 point on the front in the first place? |
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pnthomasjr
9 Posts |
Posted - 04/01/2008 : 11:12:34 AM
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quote:
Originally posted by Carpet Muncher
The way FHA is priced with most lenders there is opportunity for plenty of YSP. Why would you need more than 1 point on the front in the first place?
Because you have wack brokers out there that want to give everyone 5.5's, I understand what your saying. But it seems that everyone is whoring them selves out giving loans away for .5 |
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mganovsky
1659 Posts |
Posted - 04/01/2008 : 11:17:38 AM
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Ok I am ready to get slammed for what I am about to say:
You should never charge a client discount points unless you are giving them a rate below PAR, those of you that hide your orig or broker fee and call it discount points are weak and are either ripping off thier clients or are afraid to tell the client how much you make on the loan. either way you are lieing and cheating your clients and do not belong in this profession.
OK slam away. |
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Carpet Muncher
1370 Posts |
Posted - 04/01/2008 : 11:28:45 AM
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| Any upfront points should be listed as what they are.... Origination |
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pnthomasjr
9 Posts |
Posted - 04/01/2008 : 11:30:33 AM
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quote:
Originally posted by mganovsky
Ok I am ready to get slammed for what I am about to say:
You should never charge a client discount points unless you are giving them a rate below PAR, those of you that hide your orig or broker fee and call it discount points are weak and are either ripping off thier clients or are afraid to tell the client how much you make on the loan. either way you are lieing and cheating your clients and do not belong in this profession.
OK slam away.
LOL, im not going to slam you. I completely agree. However, if i give a borrower a 5.5 at par, you better believe i want to charge up front. at least 2. I always give my client the choice of par rate, and rate with ysp. I need to make at least 3 on every deal i do. weather its paid up front or on back i could care less. but its those other people that want to give someone par and charge up .5 or 1 up front that is ruining it for the rest of us. |
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1stintegritymort
1289 Posts |
Posted - 04/01/2008 : 11:32:10 AM
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| 1 origination the rest broker fee. call 800-CALL-FHA and they will show you they no longer regulate points. |
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godofmortgage
229 Posts |
Posted - 04/01/2008 : 12:50:47 PM
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| 3 points on every loan...go sell cars, what worth do you have for you clients...close more loans for more respectable fees and get better referrals. Thats almost predatory in this market. Apparently your not a Broker. |
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ccorica
176 Posts |
Posted - 04/01/2008 : 1:15:24 PM
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quote:
Originally posted by godofmortgage
3 points on every loan...go sell cars, what worth do you have for you clients...close more loans for more respectable fees and get better referrals. Thats almost predatory in this market. Apparently your not a Broker.
Let him keep charging 3. Those are the people I love going head to head with. Once I explain to the borrower what their LO was trying to pull on them, its all over. Another new client for me. |
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terrapin52
61 Posts |
Posted - 04/01/2008 : 1:17:30 PM
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I think it depends on the loan amount. 3% in Cali is quite high, usually. Here in Dallas, our average FHA loan amount is 150k. I've done mortgages for 50,000. You better believe I'm making at least 3 on that! Were I doing a 271k FHA (the limit here), 1 origination and .5 YSP is just peachy!
quote:
Originally posted by godofmortgage
3 points on every loan...go sell cars, what worth do you have for you clients...close more loans for more respectable fees and get better referrals. Thats almost predatory in this market. Apparently your not a Broker.
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KHufford
5054 Posts |
Posted - 04/01/2008 : 1:24:06 PM
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quote:
Originally posted by mganovsky
Ok I am ready to get slammed for what I am about to say:
You should never charge a client discount points unless you are giving them a rate below PAR, those of you that hide your orig or broker fee and call it discount points are weak and are either ripping off thier clients or are afraid to tell the client how much you make on the loan. either way you are lieing and cheating your clients and do not belong in this profession.
OK slam away.
HUH? Do you really think people will slam you for basically regurgitaing legal aspects of charging points? How would anyone charge an actual discount point and make YSP? Not possible anyway...
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CoralSnake
10286 Posts |
Posted - 04/01/2008 : 1:27:55 PM
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I dont know how you can charge discount points and collect ysp.
I didnt know anyone allowed this. |
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terrapin52
61 Posts |
Posted - 04/01/2008 : 1:30:51 PM
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Me neither. I've never charged a discount point on an FHA loan. I was told, the discount point must discount the rate if it is being charged. Broker fees are allowed, however.
quote:
Originally posted by CoralSnake
I dont know how you can charge discount points and collect ysp.
I didnt know anyone allowed this.
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Ruby2sdae2
209 Posts |
Posted - 04/24/2008 : 6:28:31 PM
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quote:
Originally posted by mganovsky
Ok I am ready to get slammed for what I am about to say:
You should never charge a client discount points unless you are giving them a rate below PAR, those of you that hide your orig or broker fee and call it discount points are weak and are either ripping off thier clients or are afraid to tell the client how much you make on the loan. either way you are lieing and cheating your clients and do not belong in this profession.
OK slam away.
I agree 100% |
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rtrefflich
2634 Posts |
Posted - 04/24/2008 : 6:34:32 PM
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Me too, the way you charge discount and earn YSP is by lying, ugh, er, not disclosing to your borrower you are screwing them. A discount is just that, a discount, not more money into brokers pocket
quote:
Originally posted by Ruby2sdae2
quote:
Originally posted by mganovsky
Ok I am ready to get slammed for what I am about to say:
You should never charge a client discount points unless you are giving them a rate below PAR, those of you that hide your orig or broker fee and call it discount points are weak and are either ripping off thier clients or are afraid to tell the client how much you make on the loan. either way you are lieing and cheating your clients and do not belong in this profession.
OK slam away.
I agree 100%
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davidfr
808 Posts |
Posted - 04/24/2008 : 7:18:12 PM
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The problem lies when there is a 6% seller concession on an FHA purchase. Many realtors aren't intelligent enough to ask the broker exactly how much the concession should be. Often times it is impossible to fill up the full 6% concession, even including appraisal and all pre-paids. I recently had this exact situation, and a 1% origination still did not get us to 6%. I went back to the realtor to try to get the purchase price and seller concession lowered and she had no idea what the heck I was talking about.
I originally had priced out the loan making 1 on the front and one on the back, and should have been able to lower the rate to par and put 2% up front just to use the entire seller concession. I couldn't. How can that possibly make sense? |
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