HECM going up

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rmcinturff

372 Posts

Posted - 08/12/2008 : 8:07:41 PM

HECM 150 going away, may open up LIBOR for more, but you'll see 200 real quick, try to close by end of August. No money at 150.

866-751-9246

rainmand

3837 Posts

Posted - 08/13/2008 : 1:12:34 PM

I'm still offering the 1.25 from Generation Mortgage.

StayInHomeGuy

281 Posts

Posted - 08/13/2008 : 1:43:46 PM

quote:
Originally posted by rainmand

I'm still offering the 1.25 from Generation Mortgage.

what does the backend pricing look like?

edit:

And I would assume that this lender was still offering the 150 as well....right?

PS: thanks you for the WA lead you provided, it's a mod bill deal so we'll have to wait, but I was out there Monday all day doing the app in person.

rainmand

3837 Posts

Posted - 08/13/2008 : 2:06:58 PM

what does the backend pricing look like?

>par at 25 and 30 but .25 back with a $35 service fee

And I would assume that this lender was still offering the 150 as well....right?

>yes, and the 175 and 200

PS: thanks you for the WA lead you provided, it's a mod bill deal so we'll have to wait, but I was out there Monday all day doing the app in person.

>You're welcome - you've gotta love the leads from www.HUDReverseMortgageLender.com ... I get them like that all the time from States I don't do and can't do anything with them except give them away. I'm hoping what comes around goes around.

jb060310

330 Posts

Posted - 08/13/2008 : 3:57:30 PM

quote:
Originally posted by rmcinturff

HECM 150 going away, may open up LIBOR for more, but you'll see 200 real quick, try to close by end of August. No money at 150.

866-751-9246

Why is it going away? No secondary market for it? Will Wells, BoA, M&T, etc. still have it retail? Thanks!!

StayInHomeGuy

281 Posts

Posted - 08/13/2008 : 5:01:46 PM

quote:
Originally posted by rainmand

what does the backend pricing look like?

>par at 25 and 30 but .25 back with a $35 service fee

And I would assume that this lender was still offering the 150 as well....right?

>yes, and the 175 and 200

PS: thanks you for the WA lead you provided, it's a mod bill deal so we'll have to wait, but I was out there Monday all day doing the app in person.

>You're welcome - you've gotta love the leads from www.HUDReverseMortgageLender.com ... I get them like that all the time from States I don't do and can't do anything with them except give them away. I'm hoping what comes around goes around.

Please shoot me a list of states you are licensed in, it rarely happens but once in a while I get referrals from clients for folks who live in states I can't do...I'd be happy to return the favor.

edit: what does the 150 pricing look like, and what do you think are the chances that they conform and move to the 175 like everybody else? I know some of the smaller lenders will try and keep these lower margins to maintain their marketshare but is Generation one of them?

rmcinturff

372 Posts

Posted - 08/13/2008 : 6:10:37 PM

You'll be offering something different in the next couple of days sir.

Just got this from Bof?

Effective August 15, 2008 loans entered into XXXXXX will be subject to the following new pricing:

CMT HECM 150/CMT HECM ANNUAL 310/HOMEKEEPER:

-1.25% (98.75) on unpaid principal balance (charge to the broker)

CMT HECM 175: 0.25% (100.25) on unpaid principal balance

CMT HECM 200: 0.875% (100.875) on unpaid principal balance

ejgoldy

119 Posts

Posted - 08/13/2008 : 7:10:02 PM

The fat back ends are going to take a powder. HECM is being "cleaned" up by the feds and lenders. My hunch it is a reciprocal favor to AARP due to the 1.5% origination cap not being part of the bill, rather than secondary market. JMHO

ejgoldy

119 Posts

Posted - 08/13/2008 : 7:10:21 PM

rainmand

3837 Posts

Posted - 08/14/2008 : 08:00:23 AM

>>due to the 1.5% origination cap not being part of the bill

But it was modified/reduced

StayInHomeGuy

281 Posts

Posted - 08/14/2008 : 08:24:11 AM

quote:
Originally posted by rainmand

>>due to the 1.5% origination cap not being part of the bill

But it was modified/reduced

Ray, please keep me updated on whether or not this banks follows the trend, otherwise it could be a significant place to set up with.

rainmand

3837 Posts

Posted - 08/14/2008 : 1:29:35 PM

Everybody is doing it now, including Generation Mortgage. I think we're being lied to though because the lenders are saying it's in reaction to the second market. The secondary market isn't involved when when the CMT is combined with a 1.5 margin for the HECM monthly adjustable ... it goes directly to Fannie Mae, bypassing the problems we're seeing in the secondary market. So why is the "generic" HECM going away?

jb060310

330 Posts

Posted - 08/14/2008 : 1:46:59 PM

quote:
Originally posted by rainmand

Everybody is doing it now, including Generation Mortgage. I think we're being lied to though because the lenders are saying it's in reaction to the second market. The secondary market isn't involved when when the CMT is combined with a 1.5 margin for the HECM monthly adjustable ... it goes directly to Fannie Mae, bypassing the problems we're seeing in the secondary market. So why is the "generic" HECM going away?

HECM's going to Fannie? These are FHA programs, why would they be going to Fannie? I thought that Fannie only bought the Homekeeper?

rainmand

3837 Posts

Posted - 08/14/2008 : 2:23:11 PM

Fannie Mae buys the 1.5 CMT monthly adjustable, 3.1 CMT annual adjustable and the Homekeeper. Those 3 are generic HUD programs and any deviations are purchased on the secondary market on Wallstreet. On January 8, 2006, Everbank (the Bank of New York at the time ) came out with the first deviation by getting a group of investors to purchase the HECM with the CMT and margin of 1.00 ... and it's been history ever since. Until that January 8th, all of us offered the exact same product and were paid the exact same way. Now we're able to offer different indexes and margins and are paid on the back. Prior to that January 8th, we only received SRP on the back. Today, selling Reverse Mortgages is similar to selling traditional Forward Mortgages, making it a lot more confusing for the homeowners.

jb060310

330 Posts

Posted - 08/14/2008 : 2:28:55 PM

quote:
Originally posted by rainmand

Fannie Mae buys the 1.5 CMT monthly adjustable, 3.1 CMT annual adjustable and the Homekeeper. Those 3 are generic HUD programs and any deviations are purchased on the secondary market on Wallstreet. On January 8, 2006, Everbank came out with the first deviation by getting a group of investors to purchase the HECM with the CMT and margin of 1.00 ... and it's been history ever since. Until that January 8th, all of us offered the exact same product and were paid the exact same way. Now we're able to offer different indexes and margins and are paid on the back. Prior to that January 8th, we only received SRP on the back. Today, selling Reverse Mortgages is similar to selling traditional Forward Mortgages, making it a lot more confusing for the homeowners.

Interesting, thanks for the clarification. One of the many reasons I'm leaving my current broker, no product knowledge!! And I've always been a proponent of knowledge in my line of work!! Any idea where I can do some research on this stuff? NRMLA and Reverse Mortgage Daily don't seem to have a lot, unless I'm looking in the wrong spot...

rmcinturff

372 Posts

Posted - 08/14/2008 : 3:32:33 PM

For a while, there were some Wall Street firms buying these, then that number started to dwindle. Then next thing you know only Fannie is buying. I think what's happening is that the CMT is not the index they want and we'll see a new Libor number coming out in the next day or so. The Libor would be more interesting to Wall Street than the CMT. This was a big jump of up to 225 basis points all in one fell swoop, that's not been seen before. I noticed today that the CMT 200 and Libor 125 were almost yielding the same principle limit, so the new Libor is going to be the way to go.

866-751-9246

jb060310

330 Posts

Posted - 08/15/2008 : 06:53:11 AM

I'm surprised there is not much of a market for these. The risk of a loss is extremely low. I'm not sure of what they might be getting as a return, but virtually no risk.

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