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Selling mortgages that weren't consummated, lenders running out of money, etc

The below was posted on a private facebook group for loan originators. I deem the poster credible, he participates, he's not a fly-by rando or anything like that.

The author of the below (assuming it's valid, and it probably is since it's so consistent with other stuff I've read, etc) is a 3rd party compliance person. A smaller mortgage outfit might retain such services b/c they don't have enough compliance work to warrant a full time compliance person or staff. Said lawyer will have several clients who "subscribe" to their ongoing legal compliance services. The "subscriber" is one small mortgage company among many other "subscribers" that the compliance lawyer would have. And keep in mind this is just from one single lawyer.

https://imgur.com/a/Ea723OF

The investor/lender, whose name I've blacked out, as of today, still has the absolute best 'quoted' pricing around. They are the top left corner outfit here on this screenshot from a few days ago. If a loan originator fields a call from someone who wants "the absolute lowest rate I can lock for the lowest fees," and that loan originator is stupid enough to go down that rabbit hole, this is where that leads - everyone else is pricing to manage capacity and application volume (touch on that here), but they're still pricing like it's 2019 and correlating to the t-note and those other pre-covid co-correlates.

If you've got an in progress loan with them, you may want to revisit. Hopefully this is just a refinance, not a home purchase. First letter S, last letter T. There are a few others in that same category, one has the first letter A and last letter of 2nd word K. Most (ALL?) of them are converted non-qm lenders, non-qm is basically "subprime 2.0" (fastest growing segment of mortgage market in 2016-2019), but that market dried up entirely when COVID hit and no one would buy the paper, so they pivoted to doing Fannie type loans. You would have found them by calling a dozen or more loan originators, until you found the biggest sucker.

submitted by /u/aardy
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/j2xmkf/selling_mortgages_that_werent_consummated_lenders/
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