| Author |
Previous Topic | Next Topic |
|
cyborg7
338 Posts |
 Posted - 10/31/2009 : 4:05:33 PM
|
| Pretty big hit don't ya think? Maybe I am wrong. I guess purchase biz is all that is left. |
|
|
|
KHufford
10407 Posts |
Posted - 10/31/2009 : 4:11:39 PM
|
Refis in general are dead and should be. Purchase biz is always the best business.
|
|
|
johnnyboy38109
4363 Posts |
Posted - 10/31/2009 : 4:31:54 PM
|
quote:
Originally posted by KHufford
Refis in general are dead and should be. Purchase biz is always the best business.
Refinances are anything but dead.
You have to really know what you are doing, but they are not dead at all.
Not now, not ever.
I will agree purchase business is best, if you can stomach the realtors and do it by referral.
|
|
|
cyborg7
338 Posts |
Posted - 10/31/2009 : 4:42:17 PM
|
| Not sure what you mean by "really have to know what you are doing" ... Explain. The FHA streamlines required no appraisal & didn't care about score. Now those are gone. |
|
|
johnnyboy38109
4363 Posts |
Posted - 10/31/2009 : 5:12:57 PM
|
quote:
Originally posted by cyborg7
Not sure what you mean by "really have to know what you are doing" ... Explain. The FHA streamlines required no appraisal & didn't care about score. Now those are gone.
What I mean is you have to really do some study to be able to identify the customers who'll benefit from a refinance.
3 MAJOR areas of current mortgagors have been neglected last 3 years..........again, MAJOR areas.
Won't be easy......will have a failure component......and will take some investigative research....and you'll have to be a MASTER MARKETEER.....but the customers available are ample for years to come........you just have to think about who's been neglected by UW restrictions last 3 years...... |
|
|
KHufford
10407 Posts |
Posted - 10/31/2009 : 5:51:00 PM
|
I just like purchase biz as its more relationship based and you have motivated parties.
|
|
|
nowbroker
2587 Posts |
Posted - 10/31/2009 : 6:02:05 PM
|
| Totally agree, if you are not marketing for purchases you will be out of business anyway after the Feds stop buying mortgages and the rates go up. |
|
|
cyborg7
338 Posts |
Posted - 10/31/2009 : 7:20:18 PM
|
| 3 MAJOR areas of REFI?? .... Hmmmmmmm ? Cash out? DU REFI PLUS? VA ?? |
|
|
johnnyboy38109
4363 Posts |
Posted - 10/31/2009 : 7:21:46 PM
|
quote:
Originally posted by cyborg7
3 MAJOR areas of REFI?? .... Hmmmmmmm ? Cash out? DU REFI PLUS? VA ??
Cashout is 1.....the other 2 you mentioned are not economical to pursue. |
|
|
peter
6465 Posts |
Posted - 10/31/2009 : 7:48:24 PM
|
Johny wrote:
"I will agree purchase business is best, if you can stomach the realtors"
Yes, I agree "if you can stomach the realtors."
Like it or not, working with the realtors is the necessary evil of this business.
Peter |
|
|
peter
6465 Posts |
Posted - 10/31/2009 : 9:25:35 PM
|
Refi business is not dead in Los Angeles area. There is a strong
demand for cashout refi among jumbo loan homeonwers, but the
problem is that most jumbo loan homeowners bought their homes
on stated income loans and therefore cannot qualify on full doc
jumbo loans now even if their credit is well over 740.
Some brokers offer stated income loans but rates are too high
and reserve requirements are too large for these homeowners
to qualify.
Second wave of demand is second-home cashout refis and
non-owner rentals cashout refis.
Conforming cash out refis are the only practical avenue to
pursue, but those with enough equity are rare birds. But they
are not entirely dead. If you farm out with the help of
your title companies, there are still those homeowners who
bout their homes before 2002 with 20% down and have never
refied. Now, they realize that the recession is taking longer
and are now trying to refi and cash out to strengthen their
reserve.
And I got 2 of them this month, all conforming cash out refis,
and I did them with 3.875% 5/1 ARM with B of A. They all want
to sell in the next few years when the ordeal is over.
Please don't presume the negative, just like what I mistakenly did
last year and the year before. Try to do your best in farming
and prospecting first.
"Presumption of nothingness" is a fait accompli.
Peter |
|
|
cyborg7
338 Posts |
Posted - 11/01/2009 : 04:49:03 AM
|
| Appreciate the strategy Peter. I guess I'm not real clear on how you'd find leads that put a chunk of $$$ down and have not refi'd. The part that I am not sure of is how would you filter or prospect that guy that put money down? It's not disclosed on public record documents if person did a down payment. You do make some good points, just clear it up for me a little please. Thanks! |
|
|
the_mortgage_guy
2628 Posts |
Posted - 11/01/2009 : 05:15:57 AM
|
| Our cespondent relationships have a kick butt super jumbo program with conventional rates. I am going to market this hard in the warm states the rest of the year. |
|
|
peter
6465 Posts |
Posted - 11/01/2009 : 06:08:35 AM
|
Kasey, all you have to do is to call the farm specialist of
the title company that you often use. Ask her to pull out
a list of homeowners whose current loan balances are less
than 70% of the assessed values. Then, use the title company's
on-line website like www.titleprofile.com or www.fidelitypassport.com
etc. and type in the address. Then go into the financial record
section and see the recorded 1st or 2nd loans. Then, compare them
with the current market values which you can easily pull out
from websites like www.cyberhomes.com or www.zillow.com.
Then, you get an idea as to the value to equity ratio. Start
sending letters, flyers, or postcards to those homeowners to
refi rate and term or to cash out refi. When the 30-year conforming
fixed rate is 5.00%, then I pitch 3.75% 5/1 ARM, and if I run
into those with ARMs, then I pitch 30 yr fixed at 4.875% which
is this week's rate. You can do this via e-mail marketing too,
by collecting e-mail addresses of businesses and business owners
from commercial ads in various magazines and from other sources
in the library.
I buy cheap white postcard paper in packs of about $10 each,
from off-cuts in a paper plant near to my home, and I use
regular scissors to cut them into postcard sizes. You can use
a cutter if you want and superimpose the paper with a postcard
template. Then, print them with your home printer thru
the regular copying processes. Mail out 10 postcards a day,
and you pay only $2.80 per day or only $84 per month. This
small expense should not hurt anyone, and if you opt for
a prepared lunch from home to eat in the office you have plenty
of money left for your small postcard project.
Good things don't have to be expensive. I mail out 20 cards
per day to the target homeowners in my foreign community where
I have an edge on language and culture, and I get calls in
which I turn into fundings. Not getting rich and prosperous
by any means, but I get some loans here and there enough to
keep a full-time processor on my payroll and a decent income
to survive this atrocious recession.
Peter
|
|
|
cyborg7
338 Posts |
Posted - 11/01/2009 : 08:30:43 AM
|
| Awesome advice Peter, I hope I can find a Title Company that has a farm specialist |
|
|
cyborg7
338 Posts |
Posted - 11/01/2009 : 08:31:48 AM
|
| Jumbo & Super Jumbo would be another interesting niche |
|
|
cyborg7
338 Posts |
Posted - 11/01/2009 : 08:39:20 AM
|
| Kyle is correct as well = relationships are huge |
|
|
peter
6465 Posts |
Posted - 11/01/2009 : 09:30:44 AM
|
I have not had any success with jumbo loan refiances. In my
area, well qualified jumbo loan homeowners seem to be
well serviced directly by B of A, Wells, Union Bank of California,
and federal credit unions. The turndowns from these big banks
normally are those who bought their huge mansions thru stated
income loans or the self-employed who bought mansions during
the glory years of business. Now, those days are gone leaving
owners of McMansions languishing waiting for the eventuality
of foreclosures.
Unlike conforming loan markets, i.e. from $150,000 to $300,000
loan amounts, there are more homeowners who do qualify and
it is definitely a larger market for brokers and L/Os to
originate loans - be it conventional refi cash out or FHA
purchases.
We should be hearing depressing news about higher foreclosure
rates and higher jobless rates in a week or two. Retail sales
will be dismal and more and more commercial properties will
face foreclosures along with residential foreclosures. The
recovery could slip and stumble, like Roubini has warned.
Then, investors will flock to fixed income investments including
our 10-year bond. And we could see 4.50% or better for our
conforming fixed rates and the music of refi will hum again
for all of us to dance to its tune.
Peter
|
|
|
ritabradley01
4945 Posts |
Posted - 11/02/2009 : 07:30:50 AM
|
| Peter you should write a book. Call it "Loan Brokering in a Recession" or something. It's good to see you're still going strong. |
|
|
peter
6465 Posts |
Posted - 11/02/2009 : 7:11:57 PM
|
No, Rita, I plan to do interviews and research on a book called
"Tales of the Forty Thieves - Insider's view of the subprime
business."
I am looking for an advance from a publisher. I wouldn't count
NAMB to be a prospective sponsor!
Peter |
|
|
zpaperkid
365 Posts |
Posted - 11/03/2009 : 1:00:07 PM
|
Peter, as always you post interesting stuff.
Here in Cali, the new law after Jan. 1, has cut me off from getting any FARM data with the title companies! I use Fidelity, mainly. How is it you are able to get free farm data? I have to buy my lists for TM from list brokers, Raymond B to be exact. |
|
|
gacero
14 Posts |
Posted - 11/03/2009 : 2:01:57 PM
|
quote:
Originally posted by peter
Kasey, all you have to do is to call the farm specialist of
the title company that you often use. Ask her to pull out
a list of homeowners whose current loan balances are less
than 70% of the assessed values. Then, use the title company's
on-line website like www.titleprofile.com or www.fidelitypassport.com
etc. and type in the address. Then go into the financial record
section and see the recorded 1st or 2nd loans. Then, compare them
with the current market values which you can easily pull out
from websites like www.cyberhomes.com or www.zillow.com.
Then, you get an idea as to the value to equity ratio. Start
sending letters, flyers, or postcards to those homeowners to
refi rate and term or to cash out refi. When the 30-year conforming
fixed rate is 5.00%, then I pitch 3.75% 5/1 ARM, and if I run
into those with ARMs, then I pitch 30 yr fixed at 4.875% which
is this week's rate. You can do this via e-mail marketing too,
by collecting e-mail addresses of businesses and business owners
from commercial ads in various magazines and from other sources
in the library.
I buy cheap white postcard paper in packs of about $10 each,
from off-cuts in a paper plant near to my home, and I use
regular scissors to cut them into postcard sizes. You can use
a cutter if you want and superimpose the paper with a postcard
template. Then, print them with your home printer thru
the regular copying processes. Mail out 10 postcards a day,
and you pay only $2.80 per day or only $84 per month. This
small expense should not hurt anyone, and if you opt for
a prepared lunch from home to eat in the office you have plenty
of money left for your small postcard project.
Good things don't have to be expensive. I mail out 20 cards
per day to the target homeowners in my foreign community where
I have an edge on language and culture, and I get calls in
which I turn into fundings. Not getting rich and prosperous
by any means, but I get some loans here and there enough to
keep a full-time processor on my payroll and a decent income
to survive this atrocious recession.
Peter
|
|
|
peter
6465 Posts |
Posted - 11/03/2009 : 2:21:46 PM
|
Certain basic data are still being provided by your favorite title reps,
depending on each title rep and his company. They are not supposed to
do all the services except providing you with basic farm data, i.e.
one-line farm which lists the names of the owners and property addresses.
From there you use the on-line websites, i.e. titleprofile.com, fidelitypassport.com,
etc. to do your own research.
I have cut off Fidelity a long time ago as they told me they could not provide
me even with the basic one-line superfarm, and I did shop around with other
title companies for the basic one-line farm and I found some of them to whom
I have been ordering prelims and have been getting the farm data with no
problem. I think you should demand this from your current title rep. If not,
shop around until you find a title rep and a title company who will give you
what you want.
Seek and you shall find.
Peter
|
|
|
jfrederick
580 Posts |
Posted - 11/03/2009 : 4:38:30 PM
|
what is the new law regarding Farms? haven't heard this yet.
quote]Originally posted by zpaperkid
Peter, as always you post interesting stuff.
Here in Cali, the new law after Jan. 1, has cut me off from getting any FARM data with the title companies! I use Fidelity, mainly. How is it you are able to get free farm data? I have to buy my lists for TM from list brokers, Raymond B to be exact.
[/quote] |
|
|
peter
6465 Posts |
Posted - 11/03/2009 : 8:13:20 PM
|
Please try to contact title companies' farm departments and
talk to their customer service managers. Fidelity is trying
to sell the farm data but I have never paid a dime for it.
Cannot comment on the legal aspects, but if you feel uncomfortable
about this, please continue to buy from Raymand. I am sure
he can provide you with the effective farm leads.
As Johny has cautioned, farm data from title reps can be
outdated and not as effective as the leads provied by reliable
lead suppliers.
I am satisfied with what I get anyway, as it is FREE!
Peter |
|
|
KHufford
10407 Posts |
Posted - 11/03/2009 : 8:23:08 PM
|
Peter, what do you do with farm lists these days? What is the strategy?
|
|
|
peter
6465 Posts |
Posted - 11/03/2009 : 8:44:37 PM
|
Very simple, just get the names and addresses of homeowners
whose current loan balances are less than $100,000 in a city
where the average home price is at least $200,000, that's all.
You can get that thru your title rep thru whom you have been
giving business regularly. He will get the one-line farm
for you from his farm specialist and you just send out
letters, flyers, postcards, etc. to those homeowners - although
not many left, but the loans you get will be simplier and
less complicated because your borrowers have more than enough
equity.
One case out of hundreds of postcards (I spent $196 on 700
postcards, self printed, at 28 cents each). My postcards
even looked unprofessional and somewhat sloppy-looking, but
I managed to get 1 hard money loan from a S/E condo owner
and made $4,200 over an investment of $196. I got the farm
data in a one-line superfarm FREE. The cost of postcard
paper, cut by myself with an old scissors, cost me $10.34
from a local Kelly Paper store (www.kellypaper.com) and I got
250 sheets. Specifications: K-16: 8.5X14-67 White Exact Vellum
Bristol. Ask them for weekly "off-cuts" which are remants from
standard cuts of their regular customer orders.
I am doing a big postcard project this month with the help of
a student-intern from a local college majoring in real estate
and good at graphic design. Hope to spend $ 280 on this
postcard project and if I funded just 1 loan it is a good
investment consider the low cost involved. I am also running
a $5 spot adverising per week for 13 weeks (total $65) and
hope to get some loans to fund.
If I funded no loan, I would lose only $280 plus $ 65 = $345
-- just a small sacrifice of skipping lunches for a month or two!
Peter |
|
|
KHufford
10407 Posts |
Posted - 11/03/2009 : 9:00:28 PM
|
| Peter, the monetary cost seems low, thats great, but it sounds highly time consuming to do all of that for 1 loan....to me thats a very unproductive marketing strategy. |
|
|
peter
6465 Posts |
Posted - 11/03/2009 : 10:08:25 PM
|
Kyle, you are right but I am just happy to fund a few doable loans
per month that net a good profit with a low investment cost.
To each his own, and this is my current strategy.
The main issue here is not how many loans you get in, but what
your funding ratio is and whether you are profitable on the
bottom line and effect a good smooth cash flow to pay your bills
monthly.
Peter |
|
|
johnnyboy38109
4363 Posts |
Posted - 11/04/2009 : 06:11:34 AM
|
quote:
Originally posted by peter
Kyle, you are right but I am just happy to fund a few doable loans
per month that net a good profit with a low investment cost.
To each his own, and this is my current strategy.
The main issue here is not how many loans you get in, but what
your funding ratio is and whether you are profitable on the
bottom line and effect a good smooth cash flow to pay your bills
monthly.
Peter
If you continue to follow this strategy, all you will ever have is a struggling, hand-to-mouth existence.
You are correct when you say "to each his own" but I don't know of an respectable, consistently profitable entity built on the idea of funding marketing programs on the savings realized by skipping lunch.
|
|
|
KHufford
10407 Posts |
Posted - 11/04/2009 : 07:34:24 AM
|
quote:
Originally posted by johnnyboy38109
quote:
Originally posted by peter
Kyle, you are right but I am just happy to fund a few doable loans
per month that net a good profit with a low investment cost.
To each his own, and this is my current strategy.
The main issue here is not how many loans you get in, but what
your funding ratio is and whether you are profitable on the
bottom line and effect a good smooth cash flow to pay your bills
monthly.
Peter
I don't know of an respectable, consistently profitable entity built on the idea of funding marketing programs on the savings realized by skipping lunch.
That was good, first time you have made me actually laugh out loud here John!
|
|
|
peter
6465 Posts |
Posted - 11/04/2009 : 10:28:47 AM
|
To get good business, you need to suffer a little and by
skipping lunches to punish yourself is quite symbolic.
There are people in the world who only have 1 meal per day,
or not at all, i.e. India for example. However, the owner
of the broker shop where I work is very generous. He brings
free lunches weekly for our loan processors and always invite
me to join in. Even on the days when he does not bring lunches,
we have plenty of food in the refrigerator with aromatic Godiva
coffee and a few other delicacies. Crackers and donuts are always
brought in by a fellow colleague who is unfortunately suffering
from obesity and diabetes. By skipping lunches after losing
money on postages and postcard paper, I have managed to be above
the physical ills that affect many loan originators, and also
realtors.
I need to end my rambling now. Johny has a good point.
I am happy with my modest existence, and in the next hour one
of the callers who responded to my postcards will come by to
see me in our office. He owns several properties in Los Angeles,
including several motels for which I have no experience in
securing commercial loans. His name is Mr. Patel.
Please wish me luck. Thank you.
Peter |
|
|
| |
Previous Topic | Next Topic |
|
Search for: 
