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RGK2394
2167 Posts |
 Posted - 11/06/2009 : 11:38:27 AM
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Have a couple of clients we worked with over the summer that are in the mid 5's that would love to refi to get down to a 4.875%-5% today. However, our BofA rep reminded us that we could get tagged for YSP recapture for re-doing the loans within 6 mos of the last refi (these would be streamlines). Has anyone gotten tagged by BofA for YSP recapture? If so, how long after the newest/most recent funding did you receive a bill or notification?
Thanks for all replies!!! |
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MisterVA
8643 Posts |
Posted - 11/06/2009 : 11:57:18 AM
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| Unless the loan amounts are pretty high, how long will it take for them to re-capture their closing costs saving .5 or .625 on the rate? |
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RGK2394
2167 Posts |
Posted - 11/06/2009 : 12:04:31 PM
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quote:
Originally posted by MisterVA
Unless the loan amounts are pretty high, how long will it take for them to re-capture their closing costs saving .5 or .625 on the rate?
I appreciate your concern, hoping you'd be more interested in helping me answer my question. But as I mentioned in OP, these are SL's. And SL's with no new apprasial, no CC's out of pocket, most of which covered by YSP which is why I'm even more concerned as to if I'd have to pay back the full amount before credits from last time, same lender (BofA) for escrow x-fer, increase in LA at the end of the day of about $2k for $80-100/mo savings. clients plan to stay in long term and take advantage of a month off of payments right before the holidays.
So now that I've explained the ins and outs of the transactions and hopefully validated them for you, any idea about my question? Are you familiar with them pursuing YSP paybacks? thank you. |
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eh6794
1035 Posts |
Posted - 11/06/2009 : 12:24:52 PM
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quote:
Originally posted by RGK2394
quote:
Originally posted by MisterVA
Unless the loan amounts are pretty high, how long will it take for them to re-capture their closing costs saving .5 or .625 on the rate?
I appreciate your concern, hoping you'd be more interested in helping me answer my question. But as I mentioned in OP, these are SL's. And SL's with no new apprasial, no CC's out of pocket, most of which covered by YSP which is why I'm even more concerned as to if I'd have to pay back the full amount before credits from last time, same lender (BofA) for escrow x-fer, increase in LA at the end of the day of about $2k for $80-100/mo savings. clients plan to stay in long term and take advantage of a month off of payments right before the holidays.
So now that I've explained the ins and outs of the transactions and hopefully validated them for you, any idea about my question? Are you familiar with them pursuing YSP paybacks? thank you.
are you sure your numbers are right? |
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RGK2394
2167 Posts |
Posted - 11/06/2009 : 12:26:51 PM
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quote:
Originally posted by eh6794
quote:
Originally posted by RGK2394
quote:
Originally posted by MisterVA
Unless the loan amounts are pretty high, how long will it take for them to re-capture their closing costs saving .5 or .625 on the rate?
I appreciate your concern, hoping you'd be more interested in helping me answer my question. But as I mentioned in OP, these are SL's. And SL's with no new apprasial, no CC's out of pocket, most of which covered by YSP which is why I'm even more concerned as to if I'd have to pay back the full amount before credits from last time, same lender (BofA) for escrow x-fer, increase in LA at the end of the day of about $2k for $80-100/mo savings. clients plan to stay in long term and take advantage of a month off of payments right before the holidays.
So now that I've explained the ins and outs of the transactions and hopefully validated them for you, any idea about my question? Are you familiar with them pursuing YSP paybacks? thank you.
are you sure your numbers are right?
Yes, very sure, thank you. Any idea about YSP recapture? |
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eh6794
1035 Posts |
Posted - 11/06/2009 : 12:28:49 PM
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quote:
Originally posted by RGK2394
quote:
Originally posted by eh6794
quote:
Originally posted by RGK2394
quote:
Originally posted by MisterVA
Unless the loan amounts are pretty high, how long will it take for them to re-capture their closing costs saving .5 or .625 on the rate?
I appreciate your concern, hoping you'd be more interested in helping me answer my question. But as I mentioned in OP, these are SL's. And SL's with no new apprasial, no CC's out of pocket, most of which covered by YSP which is why I'm even more concerned as to if I'd have to pay back the full amount before credits from last time, same lender (BofA) for escrow x-fer, increase in LA at the end of the day of about $2k for $80-100/mo savings. clients plan to stay in long term and take advantage of a month off of payments right before the holidays.
So now that I've explained the ins and outs of the transactions and hopefully validated them for you, any idea about my question? Are you familiar with them pursuing YSP paybacks? thank you.
are you sure your numbers are right?
Yes, very sure, thank you. Any idea about YSP recapture?
6 months is 6 months... listen to your rep, if hes concerned about it then you should be too...
ive done this within 6 months, but never with BofA |
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homebroker@sbcgl
7359 Posts |
Posted - 11/06/2009 : 12:31:26 PM
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Agreed, I would wait the six months, not worth it or you will be working for free.
quote:
Originally posted by eh6794
6 months is 6 months... listen to your rep, if hes concerned about it then you should be too...
[/quote] |
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RGK2394
2167 Posts |
Posted - 11/06/2009 : 12:32:07 PM
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quote:
Originally posted by eh6794
quote:
Originally posted by RGK2394
quote:
Originally posted by eh6794
quote:
Originally posted by RGK2394
quote:
Originally posted by MisterVA
Unless the loan amounts are pretty high, how long will it take for them to re-capture their closing costs saving .5 or .625 on the rate?
I appreciate your concern, hoping you'd be more interested in helping me answer my question. But as I mentioned in OP, these are SL's. And SL's with no new apprasial, no CC's out of pocket, most of which covered by YSP which is why I'm even more concerned as to if I'd have to pay back the full amount before credits from last time, same lender (BofA) for escrow x-fer, increase in LA at the end of the day of about $2k for $80-100/mo savings. clients plan to stay in long term and take advantage of a month off of payments right before the holidays.
So now that I've explained the ins and outs of the transactions and hopefully validated them for you, any idea about my question? Are you familiar with them pursuing YSP paybacks? thank you.
are you sure your numbers are right?
Yes, very sure, thank you. Any idea about YSP recapture?
6 months is 6 months... listen to your rep, if hes concerned about it then you should be too...
ive done this within 6 months, but never with BofA
I appreciate your opinion, as I am of pretty much the same school of though at this point, but I am hoping that someone who actually has some relative experience or knowledge of BofA's YSP recapture policy could chime in.
Anyone out there with experience, good or bad, regarding the topic? |
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eh6794
1035 Posts |
Posted - 11/06/2009 : 12:32:54 PM
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quote:
Originally posted by homebroker@sbcglobal.net
Agreed, I would wait the six months, not worth it or you will be working for free.
quote:
Originally posted by eh6794
6 months is 6 months... listen to your rep, if hes concerned about it then you should be too...
[/quote]
i still dont think he did his numbers right on this for enough rebate to make it beneficial for the borrower |
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eh6794
1035 Posts |
Posted - 11/06/2009 : 12:35:38 PM
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"Anyone out there with experience, good or bad, regarding the topic?"
RGK, nobody here has done this, the best experience with the "current" market is your rep. If somebody did it and got away with it up to this point with no bill but your reps cautioning you... |
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celloshred
2864 Posts |
Posted - 11/06/2009 : 12:38:15 PM
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| better yet, talk to your broker as he is the one will be stuck with the bill long after this refi closes. |
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RGK2394
2167 Posts |
Posted - 11/06/2009 : 12:42:10 PM
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quote:
Originally posted by eh6794
quote:
Originally posted by homebroker@sbcglobal.net
Agreed, I would wait the six months, not worth it or you will be working for free.
quote:
Originally posted by eh6794
6 months is 6 months... listen to your rep, if hes concerned about it then you should be too...
i still dont think he did his numbers right on this for enough rebate to make it beneficial for the borrower
[/quote]
Really? Why are you so hung up on this? I clearly stated that clients are in home for the long term, so a $80/mo savings is worth it to them. In addition, I am crediting literally all costs associated with the loan from the YSP so their loan amt goes up minimally, and we are staying BofA to BofA, so excrow rollover applies (well now new escrow "netting"). The only thing you haven't asked me here is how much I am making on the transactions. But since you insist, very little. It is about keeping an existing client happy, covering our costs and not much else on the loans, and earning their referrals. I'm not a newb, am not clubbing anyone to save $19/mo, and am doing right by the client. Want to make sure that it won't come back to bite me if I do. That's all- plain and simple.
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hmetcalf
380 Posts |
Posted - 11/06/2009 : 12:43:45 PM
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| How about you pull out the executed broker agreement. Whatever was signed and agreed to is what it is and you need to follow those rules. I got hit from 5th 3rd a while back. Never in my life before and then this one. I have no experience with B of A, but recaptures are happening much more now than they have in the past. |
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RGK2394
2167 Posts |
Posted - 11/06/2009 : 12:45:47 PM
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quote:
Originally posted by celloshred
better yet, talk to your broker as he is the one will be stuck with the bill long after this refi closes.
Buddy if I wasn't that guy I wouldn't be asking, I'd be doing. LOL. |
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RGK2394
2167 Posts |
Posted - 11/06/2009 : 12:48:26 PM
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quote:
Originally posted by hmetcalf
How about you pull out the executed broker agreement. Whatever was signed and agreed to is what it is and you need to follow those rules. I got hit from 5th 3rd a while back. Never in my life before and then this one. I have no experience with B of A, but recaptures are happening much more now than they have in the past.
Thanks Harry. I'm leaning that way. My AE has no knowledge of or experience with any recaptures, so it's one of those things I want to ask others about. |
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eh6794
1035 Posts |
Posted - 11/06/2009 : 12:49:07 PM
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quote:
Originally posted by RGK2394
quote:
Originally posted by eh6794
quote:
Originally posted by homebroker@sbcglobal.net
Agreed, I would wait the six months, not worth it or you will be working for free.
quote:
Originally posted by eh6794
6 months is 6 months... listen to your rep, if hes concerned about it then you should be too...
i still dont think he did his numbers right on this for enough rebate to make it beneficial for the borrower
Really? Why are you so hung up on this? I clearly stated that clients are in home for the long term, so a $80/mo savings is worth it to them. In addition, I am crediting literally all costs associated with the loan from the YSP so their loan amt goes up minimally, and we are staying BofA to BofA, so excrow rollover applies (well now new escrow "netting"). The only thing you haven't asked me here is how much I am making on the transactions. But since you insist, very little. It is about keeping an existing client happy, covering our costs and not much else on the loans, and earning their referrals. I'm not a newb, am not clubbing anyone to save $19/mo, and am doing right by the client. Want to make sure that it won't come back to bite me if I do. That's all- plain and simple.
[/quote]How much YSP is there at 4.875? You said youre paying for almost everything and theyre still skipping a month with no cost out of pocket? |
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RGK2394
2167 Posts |
Posted - 11/06/2009 : 12:52:34 PM
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quote:
Originally posted by eh6794
quote:
Originally posted by RGK2394
quote:
Originally posted by eh6794
quote:
Originally posted by homebroker@sbcglobal.net
Agreed, I would wait the six months, not worth it or you will be working for free.
quote:
Originally posted by eh6794
6 months is 6 months... listen to your rep, if hes concerned about it then you should be too...
i still dont think he did his numbers right on this for enough rebate to make it beneficial for the borrower
Really? Why are you so hung up on this? I clearly stated that clients are in home for the long term, so a $80/mo savings is worth it to them. In addition, I am crediting literally all costs associated with the loan from the YSP so their loan amt goes up minimally, and we are staying BofA to BofA, so excrow rollover applies (well now new escrow "netting"). The only thing you haven't asked me here is how much I am making on the transactions. But since you insist, very little. It is about keeping an existing client happy, covering our costs and not much else on the loans, and earning their referrals. I'm not a newb, am not clubbing anyone to save $19/mo, and am doing right by the client. Want to make sure that it won't come back to bite me if I do. That's all- plain and simple.
How much YSP is there at 4.875? You said youre paying for almost everything and theyre still skipping a month with no cost out of pocket?
[/quote]
I'm done. Thank you. |
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eh6794
1035 Posts |
Posted - 11/06/2009 : 12:54:09 PM
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quote:
Originally posted by RGK2394
quote:
Originally posted by eh6794
quote:
Originally posted by RGK2394
quote:
Originally posted by eh6794
quote:
Originally posted by homebroker@sbcglobal.net
Agreed, I would wait the six months, not worth it or you will be working for free.
quote:
Originally posted by eh6794
6 months is 6 months... listen to your rep, if hes concerned about it then you should be too...
i still dont think he did his numbers right on this for enough rebate to make it beneficial for the borrower
Really? Why are you so hung up on this? I clearly stated that clients are in home for the long term, so a $80/mo savings is worth it to them. In addition, I am crediting literally all costs associated with the loan from the YSP so their loan amt goes up minimally, and we are staying BofA to BofA, so excrow rollover applies (well now new escrow "netting"). The only thing you haven't asked me here is how much I am making on the transactions. But since you insist, very little. It is about keeping an existing client happy, covering our costs and not much else on the loans, and earning their referrals. I'm not a newb, am not clubbing anyone to save $19/mo, and am doing right by the client. Want to make sure that it won't come back to bite me if I do. That's all- plain and simple.
How much YSP is there at 4.875? You said youre paying for almost everything and theyre still skipping a month with no cost out of pocket?
I'm done. Thank you.
[/quote]
I hear ya' |
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Jimmymackin
878 Posts |
Posted - 11/06/2009 : 1:05:21 PM
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It will be written into the broker agreement very clearly...sometimes it is not in terms of months but payments...
I actually have one that I am doing right now |
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RGK2394
2167 Posts |
Posted - 11/06/2009 : 1:07:54 PM
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quote:
Originally posted by Jimmymackin
It will be written into the broker agreement very clearly...sometimes it is not in terms of months but payments...
I actually have one that I am doing right now
You have a deal with BofA you are re-doing that is less than 6 mos into previous loan? |
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Jimmymackin
878 Posts |
Posted - 11/06/2009 : 1:09:25 PM
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I am doing a loan that I had to address the re-capture issue...its not with BOA
My point was, sometimes the contract can specify payments as oppose to months. |
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RGK2394
2167 Posts |
Posted - 11/06/2009 : 1:15:55 PM
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quote:
Originally posted by Jimmymackin
I am doing a loan that I had to address the re-capture issue...its not with BOA
My point was, sometimes the contract can specify payments as oppose to months.
Gotcha. thanks. So I take it that due to the fact a certain amount of payments were made that you were able to move forward with your scenario? I am pretty sure, having my atty verify, that BofA is 180 days no matter waht/regardless of # of payments. |
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just in kase
1512 Posts |
Posted - 11/07/2009 : 08:43:07 AM
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| i would request a wavier from b of a, since you are going form bofa to bofa, you may have more flexabilty. |
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KHufford
10407 Posts |
Posted - 11/07/2009 : 3:53:48 PM
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BofA is 120 days recapture with us, never heard of 6 months.....
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kellamtom
1162 Posts |
Posted - 11/07/2009 : 8:59:28 PM
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| rates have been low for the past 6 months. Does he need to refi now because you gave him a rate too high, did you get 4-5points in the spring |
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jvanpetten
3928 Posts |
Posted - 11/08/2009 : 05:10:09 AM
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Probably used YSP to pay costs on a purchase, a rate in the mid 5's over the summer was not that out of line. Remember when rates went up May-July? I do, I had two streamlines that sat on my desk for the whole month of June.
quote:
Originally posted by kellamtom
rates have been low for the past 6 months. Does he need to refi now because you gave him a rate too high, did you get 4-5points in the spring
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Mandyvilla
6392 Posts |
Posted - 11/08/2009 : 05:52:01 AM
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| I know when at BofA Retail, we got penalized if we refi'd loans closed within the prior 6 months. |
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1stintegritymort
1781 Posts |
Posted - 11/08/2009 : 05:52:33 AM
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| If I were you, I would be more concerned about the new streamline rules then the recapture at this point. I would pull the case number so your borrowers are still eligible for the CURRENT streamline rules. Once you have the case number, then I would just float it and wait it out until the time passes. Or even lock in 30 to 45 days PRIOR to the 6 months so by time it is CTC, you will be good to go. If the loans closed in the summer, then you should only have to wait a few months. I don't see rates really going anywhere for awhile. I would take your chances and you don't want to get hit for recapture. They don't care what the net broker check was. They will go after the entire ysp, even if the majority was used to pay for closing costs. |
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aaron1976
885 Posts |
Posted - 11/08/2009 : 11:33:49 AM
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Yeah Kyle,
BofA is 4 months with the broker I used to be with too. I actually did not realize it varied from broker to broker. |
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RGK2394
2167 Posts |
Posted - 11/08/2009 : 11:28:42 PM
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quote:
Originally posted by 1stintegritymortgage
If I were you, I would be more concerned about the new streamline rules then the recapture at this point. I would pull the case number so your borrowers are still eligible for the CURRENT streamline rules. Once you have the case number, then I would just float it and wait it out until the time passes. Or even lock in 30 to 45 days PRIOR to the 6 months so by time it is CTC, you will be good to go. If the loans closed in the summer, then you should only have to wait a few months. I don't see rates really going anywhere for awhile. I would take your chances and you don't want to get hit for recapture. They don't care what the net broker check was. They will go after the entire ysp, even if the majority was used to pay for closing costs.
Case #'s are pulled of course, but just like when FHA went from 95% LTV to 85% LTV for cash out, the case #'s had to be pulled before the 1st of the year, but lenders quit funding them shortly after that. It's not as though I could still find a lender today to fund a 95%LTV cash out deal just because the case # was pulled 12/31/2008.
I am very aware of the new SL requirements, which is really the only reason why I am contemplating doing this for these folks today. But I am not going to do it if it ends up costing me thousands- obviously. |
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Rick_Santelli
264 Posts |
Posted - 11/09/2009 : 10:56:16 AM
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RGK,
You are making this way to difficult. Read your Broker Agreement. All of them with BOFA will very, so you will need to review your actual agreement. Bofa will collect the YSP recapture, we had this happen to us with a client we closed in November 2008 on a purchase loan, then they refinanced with someone else in March 2009 (Rates were 4.50-4.375% 30 Year).
Bofa stated the investor they had placed the loan with was requiring the YSP recapture and demanded it due within 30 days. We were very lucky as we made .375% YSP on a 85K loan, so the recapture was minimal, but you better believe Bofa will pursue recapture.
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gapboytoo
70 Posts |
Posted - 11/10/2009 : 01:11:07 AM
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| If you must, normally, you can bring the loan back to b of a under the 6 month period. However, you still must wait at least 2 months from funding date to submission date. Also, you can only net .5 rebate on conforming and 1 on conforming high balance. This may help you out. |
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