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kurt
72 Posts |
 Posted - 06/12/2008 : 11:33:32 AM
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I want to hear everyone's 2 cents on this one. I had a guy call who wants a SISA loan, I tell him I can do it so he says he wants to come into my office to review the paperwork (he was very nice don't get me wrong). He starts looking at the respa docs pulls out the GFE and circles my 1% origination fee and my $600 processing fee and writes on the GFE real big YSP?, Then he says I was a mortgage broker at one time and I want to be treated fairly. I told him that I am making yield spread on his loan (I told him the amount depends on the day we lock)and the amount he is being charged is fair but he thinks I am charging him to much, So I asked him what he thought would be a fair amount and of course he says I want you to charge me nothing, we both laughed and he said he would think about it and we would discuss a fair price later in the week.
The loan amount is around 130,000, I am going to tell him 2% plus my 600 processing fee.
What does everyone think about this experience and what would you charge knowing that the SISA is a dying bird?
Can you believe he wrote YSP? on the GFE?
Thanks and I can't wait to hear everyone's response..
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cervera01
169 Posts |
Posted - 06/12/2008 : 11:36:05 AM
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| Considering that SISA is a dinosaur and you're going to have a hell of a time getting it done... I would charge NO LESS than 2 points! Very fair... |
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jpar994
874 Posts |
Posted - 06/12/2008 : 11:36:39 AM
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He wont go may places to get a sisa I will tell him if you were such a good originator why doesnt he go back to where he worked for the laon
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mortgagewithme
193 Posts |
Posted - 06/12/2008 : 11:44:45 AM
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Tell him it's your company's policy to make a minimum of 2%, he can get it on the front or the back it's his choice. (he will like the fact that you are using industry lingo and consider him smart enough to get the "front/back" thing ;) and unfortunately you are not able to waive processing fee, that is non-negotiable.
In my opinion 2% is more than fair, especially since it is niche product, a lower loan amount, and sounds like you will end up working harder than on most with this |
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AGreene00
2820 Posts |
Posted - 06/12/2008 : 11:49:16 AM
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| He should consider himself fortunate to be able to get a SISA loan anymore. |
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jvanpetten
2546 Posts |
Posted - 06/12/2008 : 12:01:14 PM
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| 2% is fair on that loan size, I agree, ask him how he wants to pay it. Front or back. Make sure he understands that you have to share your fees with your broker, assuming that you do. You don't work for free and I am sure he never did as well. |
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bramous
972 Posts |
Posted - 06/12/2008 : 12:04:28 PM
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| I don't think that your client is in any position to negotiate....SISA is dead. I won't even do a SISA loan even if I can find a lender for it-too much liability these days. |
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cervera01
169 Posts |
Posted - 06/12/2008 : 12:10:29 PM
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I completely agree with bramous... I refuse to do Stated deals anymore PERIOD. One becuase of the liability issue and two because its a nightmare to get them closed.
I just send them to other LO's now! |
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FundStar14
762 Posts |
Posted - 06/12/2008 : 12:17:58 PM
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quote:
Originally posted by kurt
Then he says I was a mortgage broker at one time and I want to be treated fairly.
Tell him many things have changed since he was a broker and SISA is near extinct, but the one thing that hasn't changed is brokers still need to make money. If he wants the loan, tell him it's 2% total and he can pick whether its on the front or back. If he argues, tell him to hit the bricks and happy shopping.... Like others said, he will be hard pressed to find someone willing to do a SISA loan and a fee of $2600 plus processing is definitely fair for both parties. If he walks away, he will most likely come crawling back to you... |
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bramous
972 Posts |
Posted - 06/12/2008 : 12:19:49 PM
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quote:
Originally posted by FundStar14
quote:
Originally posted by kurt
Then he says I was a mortgage broker at one time and I want to be treated fairly.
Tell him many things have changed since he was a broker and SISA is near extinct, but the one thing that hasn't changed is brokers still need to make money. If he wants the loan, tell him it's 2% total and he can pick whether its on the front or back. If he argues, tell him to hit the bricks and happy shopping.... Like others said, he will be hard pressed to find someone willing to do a SISA loan and a fee of $2600 plus processing is definitely fair for both parties. If he walks away, he will most likely come crawling back to you...
...then you charge him another 2 pts in PITA fee.
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Scrooge McDuck
8853 Posts |
Posted - 06/12/2008 : 12:28:24 PM
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tell him its 2 points today, and that if he keeps barking up that tree, its 3. and if he mentions it a 3rd time, its 4.
if he was an LO, tell him to go see one of his old friends for the free loan. |
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mortgagemessiah
8003 Posts |
Posted - 06/12/2008 : 12:37:10 PM
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| on that small of a loan amount 2pts is very fair. |
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mustang05
214 Posts |
Posted - 06/12/2008 : 12:38:43 PM
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quote:
Originally posted by Scrooge McDuck
tell him its 2 points today, and that if he keeps barking up that tree, its 3. and if he mentions it a 3rd time, its 4.
if he was an LO, tell him to go see one of his old friends for the free loan.
Thats funny! I would love to be there for that. |
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dwmordue
430 Posts |
Posted - 06/12/2008 : 12:39:47 PM
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Tell him to go get the loan at his local bank, and then when he comes back after wasting a few days with that LO, tell him the fee is 4 points, but you'll waive the $600 processing fee since you want to make sure he's treated fair.
The guy acts like just because he used to be an LO, that he's your Frat brother or something.
Throw him out of your office, you'll feel a lot better, and that alone is worth more than 1 or 2 points. Don't just politely ask him to leave either, actually tell him to "get the f*** out!" |
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bestbet123
1577 Posts |
Posted - 06/12/2008 : 12:42:51 PM
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| Send him to me for a good slap and i'll send him back willing to pay whatever you want.....what a jackass! |
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peter
4617 Posts |
Posted - 06/12/2008 : 12:43:09 PM
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I had a customer who went behind me to B of A Retail but
was told that B of A no longer does any type of stated income
refi. I guess there are now many SISA turndowns coming from
B of A Retail. I don't know about other banks like Citi
if they are still offering SISA at retail. I know Wells
does not but Wachovia is offering SIVA with their porfolio
products at retail branches too.
Peter |
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Scrooge McDuck
8853 Posts |
Posted - 06/12/2008 : 12:46:27 PM
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i dont know if you all know this, but plumbers make loot. in my neck of the woods, they all have yachts. you know why they make loot, cause they all have a price book and stick to it. thats why it hardly matters to shop one plumber up against another. if one plumber is cheaper then the others, its cause he missed something.
we need a book to price out of. i know someone is gonna say its price fixing, but plumbers and other trades do it, so why cant we? |
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jvanpetten
2546 Posts |
Posted - 06/12/2008 : 12:49:45 PM
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| Gas too. |
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d_damiano
551 Posts |
Posted - 06/12/2008 : 1:24:57 PM
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[quote
...then you charge him another 2 pts in PITA fee.
[/quote]
Love that PITA fee! |
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JONGEO
251 Posts |
Posted - 06/12/2008 : 2:56:05 PM
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WHERE OR WHOM IS DOING THE SISA
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kurt
72 Posts |
Posted - 06/12/2008 : 3:02:20 PM
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The max on a SISA I think is 80%
quote:
Originally posted by JONGEO
WHERE OR WHOM IS DOING THE SISA
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ebaron
200 Posts |
Posted - 06/12/2008 : 4:15:30 PM
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| not to be a jerk, but you should have had the YSP on the GFE. He was right to ask you for it. By not doing that you were not disclosing correctly. |
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