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gsgroupinc
2036 Posts |
 Posted - 04/18/2008 : 06:08:34 AM
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| Will they be here long enough to re-cert me? |
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benjamin
2849 Posts |
Posted - 04/18/2008 : 06:18:41 AM
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| Don't sign it. |
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gsgroupinc
2036 Posts |
Posted - 04/18/2008 : 06:31:11 AM
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[quote]Originally posted by benjamin
Don't sign it.
[/quoteDon't use that much AT ALL
why are you not going to sign it? |
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wlavigne
558 Posts |
Posted - 04/18/2008 : 08:33:08 AM
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Should double check all legal wording in all renewal packages many lenders have added some pretty strict clauses in the default and buyback sections that have caused many to not resign with certain lenders. I have seen buyback requirements for customers missing one of the first 12 payments to other vague buyback conditions if the customer defaults at anytime where they may suspect certain practices or lack thereof which could be an opinionated call by their counsel to force you to buy back a loan that defaulted because of many external factors other then fraud which use to be the basic reason for a buyback in the past. Most banks who elect to try to remain in the wholesale business have been provided with additional liabilities and risks from the Federal Examiners that basically will force them to rewrite more liability towards the TPO or third party originator then at any other time in the history of wholesale lending. For many as we have seen its not worth the risk or liability to remain in wholesale.
Watch those new legal agreements they are definately geared to fault you for any reason a loan does not perform profitably. The main kicker is when the quality control people search to find reasons through documentation to support their requirement of buyback which could be anything up to and including the loss or claim of missing form or disclosure as I have heard is becoming more common for desperate financial institutions who need to unload non performing loans. |
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drdebt
33 Posts |
Posted - 04/18/2008 : 08:43:22 AM
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Excellent advice from the previous poster, William. - The clause that gets me is where they try to make me liable for the actions of 3rd parties. - And yeah, the part where the borrower meets all guidelines and still misses a payment, hey do I look like an investor?
Unfortunately, these contracts are now the norm and they're tough to avoid. I had refused to sign Wachovia's agreement in getting re-approved, but too many lenders are going by the wayside, so what choice does a broker have? - Again, I've said it before, but the banks are putting the squeeze on brokers, and squeezin' tight.
The problem is that these oppressive contract clauses could come back to bite you years later. - "Broker Bewary" |
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gsgroupinc
2036 Posts |
Posted - 04/18/2008 : 08:48:17 AM
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| I agree. I like when if my borrower goes elsewhere in the first 180 days and refi's I have to pay my YSP back. How can I control that. |
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adubois1
695 Posts |
Posted - 04/18/2008 : 2:44:19 PM
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I have a question, what if we dont sign it?? I have a perfectly good agreement in place right now and it doesnt say anything about recertifying after 10 years or so. So what if I dont sign it??
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drdebt
33 Posts |
Posted - 04/18/2008 : 3:16:53 PM
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| some of these things don't require new signatures. It's assumed you agree (and that they notified you) once you submit business to them. Some more enlightened lenders will let you scratch out the more unreasonable clauses, but lately the big ones won't budge from the language in the contracts. |
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gsgroupinc
2036 Posts |
Posted - 04/18/2008 : 3:28:22 PM
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quote:
Originally posted by drdebt
some of these things don't require new signatures. It's assumed you agree (and that they notified you) once you submit business to them. Some more enlightened lenders will let you scratch out the more unreasonable clauses, but lately the big ones won't budge from the language in the contracts.
Or the LITTLE ONES
Assurity just gave me a hard time on what I edited. |
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benjamin
2849 Posts |
Posted - 04/18/2008 : 4:19:54 PM
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There are many other lenders that appreciate you for sending them loans, will not try and steal your deal retail. Buyback terms and yield spread recapture are better with a lot of other lenders In a nutshell, screw em.
Sign up with Provident, or the other dozen or so lenders on this web site that actually want to help brokers. |
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gsgroupinc
2036 Posts |
Posted - 04/18/2008 : 4:26:57 PM
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| Provident is too expensive on the same lines as CW with the 18 charge on cwbc. Provident want $25 to run a deal in their website more than DU. NO THANKS |
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benjamin
2849 Posts |
Posted - 04/18/2008 : 7:00:24 PM
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Provident has DU or Lp. Their rates are the best for fixed.Underwriting times the quickest.
If you don't know what you are doing, sign with CW. They will take you to the cleaners,so to speak. |
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gsgroupinc
2036 Posts |
Posted - 04/18/2008 : 7:09:51 PM
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quote:
Originally posted by benjamin
Provident has DU or Lp. Their rates are the best for fixed.Underwriting times the quickest.
If you don't know what you are doing, sign with CW. They will take you to the cleaners,so to speak.
I am not going to pay to use Provident or CW. Provident is charging more than DU and LP. Plus the guys who run the local Provident branch are the guys let go from CW when they closed the Cleveland office.
And what service do you provide any how. |
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benjamin
2849 Posts |
Posted - 04/18/2008 : 7:17:20 PM
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Citi does not charge upfront to run approval. On A $200,000 loan Provident beats them by about .5 on yield,which is $1,000. For $20 you could improve your return by 50:1.
However, Provident doesn't play games, which throws a lot of people off.
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gsgroupinc
2036 Posts |
Posted - 04/18/2008 : 7:50:16 PM
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quote:
Originally posted by benjamin
Citi does not charge upfront to run approval. On A $200,000 loan Provident beats them by about .5 on yield,which is $1,000. For $20 you could improve your return by 50:1.
However, Provident doesn't play games, which throws a lot of people off.
It looks like they only offer a 12 day lock is that accurate? |
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Scrooge McDuck
9793 Posts |
Posted - 04/18/2008 : 8:00:09 PM
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quote:
Originally posted by gsgroupinc
quote:
Originally posted by benjamin
Citi does not charge upfront to run approval. On A $200,000 loan Provident beats them by about .5 on yield,which is $1,000. For $20 you could improve your return by 50:1.
However, Provident doesn't play games, which throws a lot of people off.
It looks like they only offer a 12 day lock is that accurate?
nope. they offer 12, 21, 30, 45 ect |
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drdebt
33 Posts |
Posted - 04/19/2008 : 09:52:33 AM
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I just rec'd the new CW contract today, Saturday. I won't be signing it...and there's another lender that I was going to re-up with, that I may not sign theirs either. It just goes to show you how much they think of mortgage brokers, that their attorneys write such a despicable, one-sided, unfair contract.
Speaking of CW, those of you contracted, and who intend to stay contracted, especially if you're a 1-person shop, check out the rates they offer you versus other ratesheets out there.
I noticed a 3/8 point (in fee) difference in what they offered me vs a rent-a-license shop that I'm associated with. If you're going to sign their new contract, at least get a decent ratesheet from them...afterall, you're paying for it! |
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kmikkola
814 Posts |
Posted - 04/19/2008 : 10:55:05 AM
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| With all of the restrictions mentioned, I believe the stronger brokers will become correspondent lenders. That way you get the srp for basically the same liability. |
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