Cross Qualifying – Just Say No!

[SD Realtor]

Again I think the original statement is made entirely because people do not understand the secondary market.

Come on guys, the fact is that the wholesale value of any note changes everyday with interest rates. The actual value of a note changes daily so making statements like what was made above are done because people don’t understand the basics of note trading. To think the value of a note on the day a mortgage is originated stays the same as the bond market fluctuates daily is a simple lack of knowledge.

This is understandable.

[jpinpb]

Well, in my case I didn’t really have any preferred lender. It didn’t matter much to me who I went w/as long as I got “market” low rate. But at this point, since they’re passing my loan around, glad I went w/them anyway, since they paid for closing. And what if I did go w/my favorite lender? Whose to say they wouldn’t sell my loan to someone else later?

[jpinpb]

Well, in my case I didn’t really have any preferred lender. It didn’t matter much to me who I went w/as long as I got “market” low rate. But at this point, since they’re passing my loan around, glad I went w/them anyway, since they paid for closing. And what if I did go w/my favorite lender? Whose to say they wouldn’t sell my loan to someone else later?

[jpinpb]

Well, in my case I didn’t really have any preferred lender. It didn’t matter much to me who I went w/as long as I got “market” low rate. But at this point, since they’re passing my loan around, glad I went w/them anyway, since they paid for closing. And what if I did go w/my favorite lender? Whose to say they wouldn’t sell my loan to someone else later?

[jpinpb]

Well, in my case I didn’t really have any preferred lender. It didn’t matter much to me who I went w/as long as I got “market” low rate. But at this point, since they’re passing my loan around, glad I went w/them anyway, since they paid for closing. And what if I did go w/my favorite lender? Whose to say they wouldn’t sell my loan to someone else later?

[jpinpb]

Well, in my case I didn’t really have any preferred lender. It didn’t matter much to me who I went w/as long as I got “market” low rate. But at this point, since they’re passing my loan around, glad I went w/them anyway, since they paid for closing. And what if I did go w/my favorite lender? Whose to say they wouldn’t sell my loan to someone else later?

[ucodegen]

[quote CA renter]That’s because you’re thinking from the perspective of a borrower.

A holder of a note will usually only sell it off if they can earn a profit on it. That means that someone else was willing to make less on that same note. [/quote]I should have worded it that way. I was trying to really explain it.. and probably got too technical.

[quote AN]That’s the problem with your assumption. I can’t borrow directly from the party who’s currently holding my loan (Fannie May).[/quote]
I am quite aware. The loan changed hands twice, not once. If it was once, going to Fannie Mae directly, I would say that there wasn’t much ‘fat’ on that loan, but there are two changes of hand. Each time it is changing hands, the man-in-the-middle takes their cut from the return.

I do wonder if there is a hidden game going on where Fannie has a maximum ‘slice’ allowed to the person transferring it to Fannie, and that hot-potato’ing it allowed more people in the middle to take a piece.

[quote jpinpb]And here I thought I was doing good at 4.25 x 30.[/quote]Depends upon when and your risk profile. I know someone who has little savings, high LTV and good credit score who got a 4.5%.

[quote CA renter]And you have no idea how much I despise the government’s role in forcing us to use middle men who’ve paid off someone in congress. If the government is taking the risk, then “We the People” are taking the risk, and should be rewarded by having direct access to OUR govt lenders.[/quote]I second that!!!

[quote SD Realtor]Come on guys, the fact is that the wholesale value of any note changes everyday with interest rates..[/quote]As well as what the projected rates will be. I didn’t want to delve into this one because it gets very complicated, but putting it simply.. if the loan is priced right but is changing hands, one side of the loan transfer is incorrectly pricing the loan because at that point it is a zero sum game.

[ucodegen]

[quote CA renter]That’s because you’re thinking from the perspective of a borrower.

A holder of a note will usually only sell it off if they can earn a profit on it. That means that someone else was willing to make less on that same note. [/quote]I should have worded it that way. I was trying to really explain it.. and probably got too technical.

[quote AN]That’s the problem with your assumption. I can’t borrow directly from the party who’s currently holding my loan (Fannie May).[/quote]
I am quite aware. The loan changed hands twice, not once. If it was once, going to Fannie Mae directly, I would say that there wasn’t much ‘fat’ on that loan, but there are two changes of hand. Each time it is changing hands, the man-in-the-middle takes their cut from the return.

I do wonder if there is a hidden game going on where Fannie has a maximum ‘slice’ allowed to the person transferring it to Fannie, and that hot-potato’ing it allowed more people in the middle to take a piece.

[quote jpinpb]And here I thought I was doing good at 4.25 x 30.[/quote]Depends upon when and your risk profile. I know someone who has little savings, high LTV and good credit score who got a 4.5%.

[quote CA renter]And you have no idea how much I despise the government’s role in forcing us to use middle men who’ve paid off someone in congress. If the government is taking the risk, then “We the People” are taking the risk, and should be rewarded by having direct access to OUR govt lenders.[/quote]I second that!!!

[quote SD Realtor]Come on guys, the fact is that the wholesale value of any note changes everyday with interest rates..[/quote]As well as what the projected rates will be. I didn’t want to delve into this one because it gets very complicated, but putting it simply.. if the loan is priced right but is changing hands, one side of the loan transfer is incorrectly pricing the loan because at that point it is a zero sum game.

[ucodegen]

[quote CA renter]That’s because you’re thinking from the perspective of a borrower.

A holder of a note will usually only sell it off if they can earn a profit on it. That means that someone else was willing to make less on that same note. [/quote]I should have worded it that way. I was trying to really explain it.. and probably got too technical.

[quote AN]That’s the problem with your assumption. I can’t borrow directly from the party who’s currently holding my loan (Fannie May).[/quote]
I am quite aware. The loan changed hands twice, not once. If it was once, going to Fannie Mae directly, I would say that there wasn’t much ‘fat’ on that loan, but there are two changes of hand. Each time it is changing hands, the man-in-the-middle takes their cut from the return.

I do wonder if there is a hidden game going on where Fannie has a maximum ‘slice’ allowed to the person transferring it to Fannie, and that hot-potato’ing it allowed more people in the middle to take a piece.

[quote jpinpb]And here I thought I was doing good at 4.25 x 30.[/quote]Depends upon when and your risk profile. I know someone who has little savings, high LTV and good credit score who got a 4.5%.

[quote CA renter]And you have no idea how much I despise the government’s role in forcing us to use middle men who’ve paid off someone in congress. If the government is taking the risk, then “We the People” are taking the risk, and should be rewarded by having direct access to OUR govt lenders.[/quote]I second that!!!

[quote SD Realtor]Come on guys, the fact is that the wholesale value of any note changes everyday with interest rates..[/quote]As well as what the projected rates will be. I didn’t want to delve into this one because it gets very complicated, but putting it simply.. if the loan is priced right but is changing hands, one side of the loan transfer is incorrectly pricing the loan because at that point it is a zero sum game.

[ucodegen]

[quote CA renter]That’s because you’re thinking from the perspective of a borrower.

A holder of a note will usually only sell it off if they can earn a profit on it. That means that someone else was willing to make less on that same note. [/quote]I should have worded it that way. I was trying to really explain it.. and probably got too technical.

[quote AN]That’s the problem with your assumption. I can’t borrow directly from the party who’s currently holding my loan (Fannie May).[/quote]
I am quite aware. The loan changed hands twice, not once. If it was once, going to Fannie Mae directly, I would say that there wasn’t much ‘fat’ on that loan, but there are two changes of hand. Each time it is changing hands, the man-in-the-middle takes their cut from the return.

I do wonder if there is a hidden game going on where Fannie has a maximum ‘slice’ allowed to the person transferring it to Fannie, and that hot-potato’ing it allowed more people in the middle to take a piece.

[quote jpinpb]And here I thought I was doing good at 4.25 x 30.[/quote]Depends upon when and your risk profile. I know someone who has little savings, high LTV and good credit score who got a 4.5%.

[quote CA renter]And you have no idea how much I despise the government’s role in forcing us to use middle men who’ve paid off someone in congress. If the government is taking the risk, then “We the People” are taking the risk, and should be rewarded by having direct access to OUR govt lenders.[/quote]I second that!!!

[quote SD Realtor]Come on guys, the fact is that the wholesale value of any note changes everyday with interest rates..[/quote]As well as what the projected rates will be. I didn’t want to delve into this one because it gets very complicated, but putting it simply.. if the loan is priced right but is changing hands, one side of the loan transfer is incorrectly pricing the loan because at that point it is a zero sum game.

[ucodegen]

[quote CA renter]That’s because you’re thinking from the perspective of a borrower.

A holder of a note will usually only sell it off if they can earn a profit on it. That means that someone else was willing to make less on that same note. [/quote]I should have worded it that way. I was trying to really explain it.. and probably got too technical.

[quote AN]That’s the problem with your assumption. I can’t borrow directly from the party who’s currently holding my loan (Fannie May).[/quote]
I am quite aware. The loan changed hands twice, not once. If it was once, going to Fannie Mae directly, I would say that there wasn’t much ‘fat’ on that loan, but there are two changes of hand. Each time it is changing hands, the man-in-the-middle takes their cut from the return.

I do wonder if there is a hidden game going on where Fannie has a maximum ‘slice’ allowed to the person transferring it to Fannie, and that hot-potato’ing it allowed more people in the middle to take a piece.

[quote jpinpb]And here I thought I was doing good at 4.25 x 30.[/quote]Depends upon when and your risk profile. I know someone who has little savings, high LTV and good credit score who got a 4.5%.

[quote CA renter]And you have no idea how much I despise the government’s role in forcing us to use middle men who’ve paid off someone in congress. If the government is taking the risk, then “We the People” are taking the risk, and should be rewarded by having direct access to OUR govt lenders.[/quote]I second that!!!

[quote SD Realtor]Come on guys, the fact is that the wholesale value of any note changes everyday with interest rates..[/quote]As well as what the projected rates will be. I didn’t want to delve into this one because it gets very complicated, but putting it simply.. if the loan is priced right but is changing hands, one side of the loan transfer is incorrectly pricing the loan because at that point it is a zero sum game.

[CA renter]

[quote=SD Realtor]Again I think the original statement is made entirely because people do not understand the secondary market.

Come on guys, the fact is that the wholesale value of any note changes everyday with interest rates. The actual value of a note changes daily so making statements like what was made above are done because people don’t understand the basics of note trading. To think the value of a note on the day a mortgage is originated stays the same as the bond market fluctuates daily is a simple lack of knowledge.

This is understandable.[/quote]

This was mentioned, above.

[CA renter]

[quote=SD Realtor]Again I think the original statement is made entirely because people do not understand the secondary market.

Come on guys, the fact is that the wholesale value of any note changes everyday with interest rates. The actual value of a note changes daily so making statements like what was made above are done because people don’t understand the basics of note trading. To think the value of a note on the day a mortgage is originated stays the same as the bond market fluctuates daily is a simple lack of knowledge.

This is understandable.[/quote]

This was mentioned, above.

[CA renter]

[quote=SD Realtor]Again I think the original statement is made entirely because people do not understand the secondary market.

Come on guys, the fact is that the wholesale value of any note changes everyday with interest rates. The actual value of a note changes daily so making statements like what was made above are done because people don’t understand the basics of note trading. To think the value of a note on the day a mortgage is originated stays the same as the bond market fluctuates daily is a simple lack of knowledge.

This is understandable.[/quote]

This was mentioned, above.

[CA renter]

[quote=SD Realtor]Again I think the original statement is made entirely because people do not understand the secondary market.

Come on guys, the fact is that the wholesale value of any note changes everyday with interest rates. The actual value of a note changes daily so making statements like what was made above are done because people don’t understand the basics of note trading. To think the value of a note on the day a mortgage is originated stays the same as the bond market fluctuates daily is a simple lack of knowledge.

This is understandable.[/quote]

This was mentioned, above.

[Author]

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