All Forum Posts by: Daniel Hennek

Multiple mortgage inquiries within 30 days count as the same inquiry as far as credit scores go so you don't have to worry about hurting your credit by shopping around.  It's purposely set up that way to NOT penalize you for shopping around.

The difference between local lenders and national is generally not small.  A local lender like a small broker can save people up to 2% in fees vs a large national outlet.  That's not to say that all small companies will do the same, but in general you'll find better deals at small places.  Specifically, a local Mortgage Broker is generally going to have the best chance at having the best deal.  I would never go with a national lender suggested by a turnkey company; reason being they most likely have higher rates because they are being fed leads by turnkey companies and need to pay for those affiliate deals.

Rates change daily so if you're shopping for quotes ask for the same rate with the same down payment on the same day from multiple people to ensure apples to apples comparison.  Shopping around will always help you understand where you sit, and give you a chance of finding someone who's better than you expected.  Just beware that there are people out there who throw out lower than possible numbers because they know you're not moving forward right away and rates always change so they have an out when you are ready.  So it's not just about the numbers.

You must be licensed and sponsored by a company.  You can go to NMLS.org to find out more about licensing.  Why are you asking if you can do it part time?  

Doing it full time is hard enough for most people; it's not a part time position.  Most times being an MLO is a greater than 40 hours a week position.  There are many many hours in between any one person and consistent success in the mortgage industry.

I personally don't offer MLO positions as part time, it wouldn't be a very smart business decision to have people that are half dedicated to such a difficult profession.

Here's the stuff most lenders won't tell you.  

We all work on a margin.  Margins in the industry can range from 1% up to 4.5% depending on the loan amount, business channel, loan officer selection, and several other things.  This is the primary reason you can shop around and find drastically different quotes.  2 MLO's quoting you from the same outlet could have different offers because one has a higher margin than the other.

If you go to the biggest retail mortgage operations you're generally going to get higher rates from telemarketers.  They use their brands to justify the extra profit margin and pay their loan officers relatively little compared to other operations so they get a double whammy of profit margin increase.  If you find a high level individual MLO concerned with growing their own personal business you'll generally find a lower margin because they have already looked around the job market and made a switch to a lender that offered them better comp and lower rates to sell.  Some large operations will offer clients the same exact rate for 2 points when my company can do it for 0 points.  I have a few outlets that routinely sell their retail clients higher rates, and I get my clients through that same companies wholesale operation with lower rates and less cost.  So, same company, different channels (retail vs wholesale) and drastically different terms.

So, if up to 2% of your loan amount seems like it's worth your time to make a few extra calls then do it.  Also consider that you're not just shopping the rates but also the individual MLO.  When shopping rates be sure to get quotes on the same exact rate and within a few days of each other, ideally the same day to give you the best snapshot comparison.  The market can move and you could find one lender is cheaper this week and more expensive the next based on the outlets they have access to.

In the end you have to make a bet on who to work with and when to lock.  It's all a bet and sometimes 3/4 of a percent isn't that big of a deal when you start looking at the big scheme of things.  2% borders on obscene in my opinion though and I don't think anyone deserves a margin that much higher than anyone else no matter how many commercials they pay for telling you they're they best.

Re-read the bottom of my post where I said exactly "it's business purpose vs consumer" and not QM vs Non-QM.

 You were saying that Non-QM loans don't have to follow the Rule when in fact they do if they are consumer loans.  We are mostly on the same page.

Just ran a pricing scenario for you.  And while I cannot quote you rates because I do not carry a CA license I can tell you that there are better deals to find than 2 points for 2.375%.  And the 2.75% deal can be quite a bit better as well.  Keep shopping.

You're saying I'm interpreting this when I've just copied from my policies and procedures which are based on the actual regulations.  If you'd like a reference that's easy to find go to the small entity compliance guide and look at page 19 where is says "what loans does the rule cover" 

(§ 1026.36(b))

It states, and this is copied from the CFPB guide:

Almost all closed-end consumer credit transactions secured by a dwelling (including any real
property attached to the dwelling) are subject to the provisions on compensation, qualification,
identification, and the establishment and maintenance of written policies and procedures for
compliance.
This includes loans made to consumers that are secured by residential structures that contain
one to four units, including condominiums and cooperatives. It is not limited to first liens or to
loans on primary residences.
The provisions on compensation, qualification, identification, and the establishment and
maintenance of written policies and procedures do not apply to:
 Open-end credit plans including HELOCs
 Time-share plans

 The difference is business purpose vs consumer.  Not the product type of QM vs Non-QM.  I should have used the word consumer in my previous post.

Look at the savings for the lower rate and divide the cost by it.  Do some simple math to see how long it takes you to make up for the increased closing costs with the lower payment.  Also, all lenders can offer you a range of rates with a range of costs.  It would behoove you to check the cost of the other rates with all lenders you are shopping.  See what 2.375% costs with all of them, and see what 2.75 costs with all of them to compare apples to apples.

You didn't mention your credit score so it's hard to tell if you're getting a good deal.

Rates can come in any number down to the thousandth.  Some lenders do an "exact" rate thing where instead of getting a small lender credit or paying a small amount of points you actually get the rate that is truly ZERO points and could be 2.748 or 2.689 or something similar.  So they don't just come in eighths.

Another important note is that if you got an appraisal waiver with one lender at $515,000 then you'll get an appraisal waiver with other lenders unless that first lender didn't put things in accurately and overstated your income or something else that could throw a property inspection waiver finding when it shouldn't.  The appraisal waiver is determined by the automated system used by Fannie Mae or Freddie Mac for all conventional loans.  So, it's not something special that one lender has vs another.  The difference is that you must have completed a full app for the company that said you have no appraisal and they actually ran your app through the AUS to find out.  Once the other companies run it they would likely get the waiver as well.

If you have 740+ credit then 2.75% could be lower for the same cost with another lender.  Better.com is decent, Rocket is expensive and you can go through both in the wholesale channel with a broker to get a better deal from both companies.  

Try findamortgagebroker.com 

USDA income limits are $88,560 for family of 1-4 and $116,900 for 5+.

Here is a link to the full guidelines.  All answers can be found if you look hard enough.  Or share your info with a competent loan officer and ask them.  Without knowing your profile it's hard to answer and there are too many possibilities and variables to cover every scenario so it's pointless to try without knowing your profile.

https://www.rd.usda.gov/public...

The Loan Originator Compensation Rule applies to all "covered transactions".  Covered transactions include ALL loans made to residential structures that contain 1-4 units.  It is not limited to 1st liens or primary residences.

There is the same exposure regardless of occupancy.  It's all about how the Rule is interpreted and what the compliance officer and executives think about that exposure.  I think it's discrimination to charge different amounts for lender vs borrower paid and it's the core of what they were trying to prevent with the Rule in the first place.  Furthermore, the amount of borrower comp is up to the broker not the lender and that is what opens the door to discrimination.

I have several outlets for DSCR with lender paid comp.

You experience is highly dependent upon the company and person/people you work with.  You obviously found competent people to originate your loan.