| Author |
Previous Topic | Next Topic |
|
sandkicker
63 Posts |
 Posted - 06/26/2009 : 10:00:20 AM
|
OK... am I on a snark hunt? Been working with a client with a 1.2 mil property for almost a year. They owe more than what the HECM, even with the new limits will yield them.
They called today after having a conversation with their bank about subordinating the shortfall and were told... "No, there are 4 reverse lenders who have programs that will pay you enough to pay us in full." When they asked who the lenders were, the bank told them that they could not tell them who the lenders were for legal reasons... So the client of course thinks I'm behind the curve, which may be HOWEVER. So far as I know there are only two Jumbo reverses out there and from the numbers I've seen, neither will do the job... Borrower age 74 and needs to net out about $550K on a 1.2mil property in NJ. I'm also suspicous of the bank as I do not see how telling the client who these lenders are is to the detriment of the bank in any way.
Soooo...before I kill half a day trying to find these lenders, does anyone know who they are (assuming the exist)? |
|
|
|
rainmand
5185 Posts |
Posted - 06/27/2009 : 10:00:20 AM
|
It's okay for Banks to refer their clients - I've received several new clients that way.
You're correct in that there are only 2 real Jumbo lenders available today. Reverse It's limit and LTV is too low, so you're left with Bank of America's Platinum program. But it's primarily a marketing gimmick and they've rejected all the homeowners I've sent their way.
I'd love to know just one of those four Jumbo Lenders they're talking about ... I could provide them with one file per day. |
|
|
sandkicker
63 Posts |
Posted - 06/27/2009 : 11:16:09 AM
|
Then there is 1st Reverse, however their LTV is too low. It's probably the same investor.
In so far as BofA is concerned, I called them and that program is not available here in NJ.
|
|
|
MaxwellOwen
112 Posts |
Posted - 06/27/2009 : 7:12:24 PM
|
Bank of America is offering Countrywide Bank's Simple Equity program, not their Platinum product for those borrowers who need to utilize a higher loan amount for their jumbo loans.
Several of these loans are closing each month. One was just closed last week in our area (Northeast) for over $3.5 million on a $15 million property..
If a 20-30% LTV will work for these borrowers with higher value homes, the Simple Equity program may be an option for them to consider
|
|
|
peter
6401 Posts |
Posted - 06/28/2009 : 03:58:31 AM
|
Robert, is the Simple Equity Program being offered only in retail?
Peter
|
|
|
MaxwellOwen
112 Posts |
Posted - 06/28/2009 : 07:32:32 AM
|
That is correct.
It is only available in the retail channel. |
|
|
rainmand
5185 Posts |
Posted - 06/28/2009 : 11:41:07 AM
|
I've directed lots of homeowners to Countrywide for the Simple Equity too, and they were told the same thing Bank of America told them ... "no". Now that they're the same company, I only have to direct them to Bank of America.
I've heard BofA is very selective about who they offer their Jumbo to, and only do about 5 a month.
Last year at this time I was interviewing with Countrywide (and they were preparing to become BofA) so I could get access to their Jumbo program. Even though I was receiving 100% of the front and back at the time, I was prepared to accept 50% of the Origination Fee, because I could have originated one Jumbo a day. But the 50% was for HECM's only, they only paid 20% of the Origination Fee for the Jumbo program. I could hardly believe it when they told me that. |
|
|
MaxwellOwen
112 Posts |
Posted - 06/28/2009 : 4:28:00 PM
|
Raymond,
Could you share the reasons why the borrowers you sent over for consideration of the Simple Equity program were denied?
Not to get into specifics in this thread, however,the comp plan today with BoA is far different than it was last year when you spoke with Countrywide and I am sure the numbers are different than what you spoke of last year with the company at that time.
Who do you send your jumbo reverse business to these days?
And if you don't utilize anyone's jumbo reverse program because you haven't found one that works for you yet, what do you tell these borrowers who inquire about a jumbo reverse program?
|
|
|
rainmand
5185 Posts |
Posted - 06/28/2009 : 5:55:49 PM
|
I've asked some of the homeowners why and they said they weren't provided with a reason. Cliff said they offer the programs stictly for marketing purposes and selectively do approximately 5 a month, and based upon my experiences, I believe him.
First I mention the Jumbo program offered by BofA, and encourage them to call and ask about it. Unfortunatley, BofA and Countrywide cut me off on the wholesale side and didn't provide me with any information about their retail side, so I can't provide the consumers with a phone number and am not sure how many homeowners are successful speaking to a Jumbo Reverse Specialist, because I only talk to a handful of them afterwards. I also tell them about Reverse It's program, but a HECM usually works better, so I usually suggest getting a HECM today with the goal of refinancing into a Jumbo when the secondary market comes back ... in 2 years or so (I hope). HECM's don't work well most the time for Jumbo's though and there's usually shortfall, which is always painful.
I also have access to private investors and they're able offer a program that mimicks Jumbo Reverse Mortgage programs by forming an arbitrage with insurance products. They're really picky though.
I'd love to know more about BofA's Jumbo product, and who I can refer my clients to there. And I'm curious about the commission structure too. |
|
|
MaxwellOwen
112 Posts |
Posted - 06/28/2009 : 6:48:11 PM
|
Send me an e-mail so I have your address and I'll be glad to answer any questions you have and clarify the commission structure.
As for the secondary markey coming back, let's hope so...maybe that will get the LTV's higher on the jumbo products. |
|
|
WorldWideWayne
3094 Posts |
Posted - 06/29/2009 : 09:29:18 AM
|
Is there any chatter out there at all about someone re-entering the Jumbo Reverse market?
With the need being there, I can not believe these can not be made both profitable for the investors and effective for the clients... |
|
|
rainmand
5185 Posts |
Posted - 06/29/2009 : 09:37:34 AM
|
>>Send me an e-mail
I sent a private email via BO and it bounced back. Send me and and I'll reply back to it. |
|
|
rainmand
5185 Posts |
Posted - 07/02/2009 : 3:36:06 PM
|
You email keeps bouncing back to me Robert. robert_jaekle@bankofamerica.com is the address that's bouncing.
I've had 5 requests for jumbo reverses in the last two days. Do you have a jumbo calculator I could use? To see if they're worthwhile for you? |
|
|
MaxwellOwen
112 Posts |
Posted - 07/02/2009 : 7:50:51 PM
|
the e-mail address is robert.jaekle@bankofamerica.com, it is no longer an underscore between the first and last name, it is a .
sorry for the confusion.
I do not have a calculator I can send you, however, you can use the following general ltv's:
age 62-70 would give you approxiamately 20% LTV
70-80 years old would give you approxiamately 25% LTV
over 80 years old would give you approxiamately 30% LTV
again, I apologize for the confusion on the e-mail. |
|
|
MaxwellOwen
112 Posts |
Posted - 07/02/2009 : 7:52:43 PM
|
I have corrected my profile to reflect the new e-mail address.
sorry about that. no wonder everyone hasn't been flooding my inbox. :) |
|
|
Quicksilver
5908 Posts |
Posted - 07/03/2009 : 08:31:24 AM
|
| You know now this make sense, I had a friend who was telling me about this with their equity program, and said every file kept coming back denied and he heard the same from others, I mean clean deals that fit the guides exactly. Now what you guys said makes sense, they only do 5 per month? WTF no wonder everyone is getting files kicked back, could you imagine how many submissions their getting yet only accepting 5 per month out of the whole nation... jeeze, just shot him an email on this. |
|
|
| |
Previous Topic | Next Topic |
|
Search for: 
