Are selling brokers informing their clients about loan rates?

[NotCranky]

That is funny. It would be funnier if you were referring to how he was marketing his house…. 50% off blue book.Used car salesman ,old habits die hard.

[SD Realtor]

Hi Rad –

In a nutshell… Oh Yeahhhhhhhhhh…. (and you have to say yeah like macho man randy savage)

The problem is that many sellers are just still in denial. One of my listings has a particularly crispy seller who doesn’t accept the situation. I told him that his pricing may indeed get a deal on paper but most likely will get kicked back by the lender when the loan goes through underwriting… We will see how this one goes as the loan is currently in underwriting as I type and the appraisal is getting reviewed. Yes the lender is Countrywide.

The more seasoned people are getting it but even then… I just got off the phone with a nice lady who has a listing with Prudential that she is cancelling. She listed with them for 2 straight periods and the home has not sold. I told her it is not really their fault as much as it may be that the home is not priced correctly. Well she went through a big diatribe about how they MUST get this much out of the home… so this is from someone who has been on the market, who has not seen the home sell, who has all the nice pictures and big marketing tools of this monster brokerage…so as much as she gets it… she doesn’t get it…I gave her a call back after I comped it out and suggested an immediate 10% price reduction with a caviot that I would be more comfortable with a 15% reduction. I almost heard her head hit the wall… Anyways she wants to meet in person tomorrow….

I hear this every day…over and over and over….

The bottom line is that even with the secondary market dried up, and the real estate market hitting the wall… a vast majority of sellers still don’t realize they will get what the market bears, not what they have to get out of the home.

Those that price aggressively and make the homes show well have the best shot at selling…

SD Realtor

[SD Realtor]

Hi Rad –

In a nutshell… Oh Yeahhhhhhhhhh…. (and you have to say yeah like macho man randy savage)

The problem is that many sellers are just still in denial. One of my listings has a particularly crispy seller who doesn’t accept the situation. I told him that his pricing may indeed get a deal on paper but most likely will get kicked back by the lender when the loan goes through underwriting… We will see how this one goes as the loan is currently in underwriting as I type and the appraisal is getting reviewed. Yes the lender is Countrywide.

The more seasoned people are getting it but even then… I just got off the phone with a nice lady who has a listing with Prudential that she is cancelling. She listed with them for 2 straight periods and the home has not sold. I told her it is not really their fault as much as it may be that the home is not priced correctly. Well she went through a big diatribe about how they MUST get this much out of the home… so this is from someone who has been on the market, who has not seen the home sell, who has all the nice pictures and big marketing tools of this monster brokerage…so as much as she gets it… she doesn’t get it…I gave her a call back after I comped it out and suggested an immediate 10% price reduction with a caviot that I would be more comfortable with a 15% reduction. I almost heard her head hit the wall… Anyways she wants to meet in person tomorrow….

I hear this every day…over and over and over….

The bottom line is that even with the secondary market dried up, and the real estate market hitting the wall… a vast majority of sellers still don’t realize they will get what the market bears, not what they have to get out of the home.

Those that price aggressively and make the homes show well have the best shot at selling…

SD Realtor

[SD Realtor]

Hi Rad –

In a nutshell… Oh Yeahhhhhhhhhh…. (and you have to say yeah like macho man randy savage)

The problem is that many sellers are just still in denial. One of my listings has a particularly crispy seller who doesn’t accept the situation. I told him that his pricing may indeed get a deal on paper but most likely will get kicked back by the lender when the loan goes through underwriting… We will see how this one goes as the loan is currently in underwriting as I type and the appraisal is getting reviewed. Yes the lender is Countrywide.

The more seasoned people are getting it but even then… I just got off the phone with a nice lady who has a listing with Prudential that she is cancelling. She listed with them for 2 straight periods and the home has not sold. I told her it is not really their fault as much as it may be that the home is not priced correctly. Well she went through a big diatribe about how they MUST get this much out of the home… so this is from someone who has been on the market, who has not seen the home sell, who has all the nice pictures and big marketing tools of this monster brokerage…so as much as she gets it… she doesn’t get it…I gave her a call back after I comped it out and suggested an immediate 10% price reduction with a caviot that I would be more comfortable with a 15% reduction. I almost heard her head hit the wall… Anyways she wants to meet in person tomorrow….

I hear this every day…over and over and over….

The bottom line is that even with the secondary market dried up, and the real estate market hitting the wall… a vast majority of sellers still don’t realize they will get what the market bears, not what they have to get out of the home.

Those that price aggressively and make the homes show well have the best shot at selling…

SD Realtor

[JWM in SD]

SD,

Can you keep us apprised of the interest rate that gets used here. Hype is claiming that rates on the jumbos have not in fact gone up to almost 8%. I suspect that it was that his deal was too close to the changes to show the effect.

[JWM in SD]

SD,

Can you keep us apprised of the interest rate that gets used here. Hype is claiming that rates on the jumbos have not in fact gone up to almost 8%. I suspect that it was that his deal was too close to the changes to show the effect.

[JWM in SD]

SD,

Can you keep us apprised of the interest rate that gets used here. Hype is claiming that rates on the jumbos have not in fact gone up to almost 8%. I suspect that it was that his deal was too close to the changes to show the effect.

[GoUSC]

SD,

It is frustrating for us home buyers too. Here I am sitting on the sidelines, plenty of down payment, solid 780+ fico, good income and ready willing and able to buy. It’s a waiting game that will just keep playing out….UGH.

[GoUSC]

SD,

It is frustrating for us home buyers too. Here I am sitting on the sidelines, plenty of down payment, solid 780+ fico, good income and ready willing and able to buy. It’s a waiting game that will just keep playing out….UGH.

[GoUSC]

SD,

It is frustrating for us home buyers too. Here I am sitting on the sidelines, plenty of down payment, solid 780+ fico, good income and ready willing and able to buy. It’s a waiting game that will just keep playing out….UGH.

[SD Realtor]

Hi JWM…

I really cannot… I highly believe that real estate and financing should be 100% sperate. I think there is a huge conflict of interest and real estate brokers doing loans is as bad as mortgage brokers doing real estate.

So I get alot of different stories from the mortgage brokers and lenders alike when I chat with them regarding the rates and climate. Unfortunately I only do real estate so I cannot comment on the validity of the postings on the Countrywide rates moving up.. Also I don’t have any daily updates…sorry if I am weenie-ing out on you.

My opinion is that the rate sensitivity to the individual strength of the buyer will be greater then it has ever been. Also we need another few weeks to let the pre secondary market loan approvals get through the system so that we can see what the new baseline looks like.

Also I think Chris S had a very valid post that there has been an overreaction to the crisis and that indeed it will calm down. I think this makes sense… but I have this queasy feeling that if the 10 year moves then they will not go down… also more queasiness that if there are more reports of hedge fund failings and secondary market problems that we will see more knee jerk reactions…in short it is to volatile right now for me to project.

I know your question is really intended to validate the current conditions or shall I say the lending conditions and rates as we move forward. I think that major changes are here to stay. Bubblehype may indeed have snuck in under the wire and some lenders may indeed continue to offer some good programs for well qualified buyers. Remember we are still 50 basis points below the June figures for the 10 year. I have a 2 buyers right now that are motivated and another smattering of buyers that are very selective and taking their time. The 2 that are motivated, one is cash and the other is not so the one that is not, once they get closer to finding something they like, I will coordinate closer with their mortgage broker to see what the rate is that they will be getting and keep you abreast.

One thing that would be super cool is a rate monitor where the PAR values of a few different loan programs were posted by a mortgage lending professional… PB or HLM?

[SD Realtor]

Hi JWM…

I really cannot… I highly believe that real estate and financing should be 100% sperate. I think there is a huge conflict of interest and real estate brokers doing loans is as bad as mortgage brokers doing real estate.

So I get alot of different stories from the mortgage brokers and lenders alike when I chat with them regarding the rates and climate. Unfortunately I only do real estate so I cannot comment on the validity of the postings on the Countrywide rates moving up.. Also I don’t have any daily updates…sorry if I am weenie-ing out on you.

My opinion is that the rate sensitivity to the individual strength of the buyer will be greater then it has ever been. Also we need another few weeks to let the pre secondary market loan approvals get through the system so that we can see what the new baseline looks like.

Also I think Chris S had a very valid post that there has been an overreaction to the crisis and that indeed it will calm down. I think this makes sense… but I have this queasy feeling that if the 10 year moves then they will not go down… also more queasiness that if there are more reports of hedge fund failings and secondary market problems that we will see more knee jerk reactions…in short it is to volatile right now for me to project.

I know your question is really intended to validate the current conditions or shall I say the lending conditions and rates as we move forward. I think that major changes are here to stay. Bubblehype may indeed have snuck in under the wire and some lenders may indeed continue to offer some good programs for well qualified buyers. Remember we are still 50 basis points below the June figures for the 10 year. I have a 2 buyers right now that are motivated and another smattering of buyers that are very selective and taking their time. The 2 that are motivated, one is cash and the other is not so the one that is not, once they get closer to finding something they like, I will coordinate closer with their mortgage broker to see what the rate is that they will be getting and keep you abreast.

One thing that would be super cool is a rate monitor where the PAR values of a few different loan programs were posted by a mortgage lending professional… PB or HLM?

[SD Realtor]

Hi JWM…

I really cannot… I highly believe that real estate and financing should be 100% sperate. I think there is a huge conflict of interest and real estate brokers doing loans is as bad as mortgage brokers doing real estate.

So I get alot of different stories from the mortgage brokers and lenders alike when I chat with them regarding the rates and climate. Unfortunately I only do real estate so I cannot comment on the validity of the postings on the Countrywide rates moving up.. Also I don’t have any daily updates…sorry if I am weenie-ing out on you.

My opinion is that the rate sensitivity to the individual strength of the buyer will be greater then it has ever been. Also we need another few weeks to let the pre secondary market loan approvals get through the system so that we can see what the new baseline looks like.

Also I think Chris S had a very valid post that there has been an overreaction to the crisis and that indeed it will calm down. I think this makes sense… but I have this queasy feeling that if the 10 year moves then they will not go down… also more queasiness that if there are more reports of hedge fund failings and secondary market problems that we will see more knee jerk reactions…in short it is to volatile right now for me to project.

I know your question is really intended to validate the current conditions or shall I say the lending conditions and rates as we move forward. I think that major changes are here to stay. Bubblehype may indeed have snuck in under the wire and some lenders may indeed continue to offer some good programs for well qualified buyers. Remember we are still 50 basis points below the June figures for the 10 year. I have a 2 buyers right now that are motivated and another smattering of buyers that are very selective and taking their time. The 2 that are motivated, one is cash and the other is not so the one that is not, once they get closer to finding something they like, I will coordinate closer with their mortgage broker to see what the rate is that they will be getting and keep you abreast.

One thing that would be super cool is a rate monitor where the PAR values of a few different loan programs were posted by a mortgage lending professional… PB or HLM?

[JWM in SD]

“I really cannot… I highly believe that real estate and financing should be 100% sperate. I think there is a huge conflict of interest and real estate brokers doing loans is as bad as mortgage brokers doing real estate.”

Understood. I suspected as much but I thought I would just ask anyway.

As far as Chris goes, I don’t agree. I have spent a lot time looking at the economic issues at hand as well as the systemic risk factors and to think this will die down is nieve at best. I wish it weren’t true because I would prefer to be able to continue to trade in the stock market but it isn’t. This will get worse before it gets any better…mark my words.

[JWM in SD]

“I really cannot… I highly believe that real estate and financing should be 100% sperate. I think there is a huge conflict of interest and real estate brokers doing loans is as bad as mortgage brokers doing real estate.”

Understood. I suspected as much but I thought I would just ask anyway.

As far as Chris goes, I don’t agree. I have spent a lot time looking at the economic issues at hand as well as the systemic risk factors and to think this will die down is nieve at best. I wish it weren’t true because I would prefer to be able to continue to trade in the stock market but it isn’t. This will get worse before it gets any better…mark my words.

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