Posted on 04/10/2023 5:28:38 PM PDT by RomanSoldier19
They are “making” money on thr mtg but because they aren’t writing enough mortgages the money they are making isn’t covering the fixed costs associated with their mortgage business
didnt make sense to me either
maybe they lose when they resell
There is a huge condo complex being built in my very rural neighborhood. Two story condos about 1500 sq ft were priced at 195k. I practically choked when I found out the price. Also, the second floor is up a very steep stairway, so no older people need apply. Some unknown number of these are set aside for “affordable housing.” That means there may be people with 1000-watt stereos or drug sellers living next to you. (This is what happened in my prior neighborhood before I moved into the woods.) After a year they hadn’t sold a single unit, so they put out a sign saying, “for lease.” Six months later, they hadn’t leased any units. Now, the entire complex, which they are still building, is up for sale. I suspect the entire thing will go Section 8 and that may have been the intent from the beginning.
The contract is the contract and the terms can’t be changed, only renegotiated.
Sauron’s advice is correct. Consult a lawyer and find out if the new company is doing a switcheroo.
Sometimes you’re just lucky when you sell at the perfect time.
Their overheads are too high. If they have 1000 people working in the mortgage department, and the number of mortgages drops suddenly and dramatically, they will lose money before they can lay off or redeploy the workers.
*************
Exactly.
They made a killing from 2020-2021 and now their loans during 2022 were down 50%. Also, their costs went up 23% between 2021 & 2022.
It was a nice run but eventually lack of inventory, covid hysteria winding down, less buyers, high prices, & higher interest rates were going to cool it off.
“… Now, the entire complex, which they are still building, is up for sale. I suspect the entire thing will go Section 8 and that may have been the intent from the beginning”
**************************************************************
There’s been a LOT of that going on. And, yes, it’s INTENTIONAL.
This was made into law under Obama’s Hud. Every zip code was going to be equity
Thats not what is happening...a lender cannot legally change an interest rate. You are not getting the proper details.
I am a mortgage loan officer by the way.
It’s possible it’s a scammer. I told her to take it to a lawyer.
YOU better OWN that LAND IN THE WOODS-—or the property OWNER will drive you out.
Might make her even more $$$$$$$ than that.
CERTAIN PAYMENTS as PUNISHMENT are not even taxable income.
WOULD HAVE TO BEEN VERY CLEAR THAT IT WAS AN ARM.
WITH interest rates going up for past 18 months——why didn’t her original mortgage holder raise the payments/interest???
why now that the loan was sold.??
SEE A LAWYER
Then this seems a deceptive way to report it.
Overhead losses are presumably at least cut every time they write a new mortgage.
MY loan on my 2nd house was sold-—but the payment didn’t change even a penny.
ONLY problem I had was that I was NOT notified & no new coupons were sent to me....or any new payee or address.
I got a call from the NEW Loan holder that I was 3 months delinquent & they were going to foreclose.
I sent them copies of my check payments & told them that mortgage holder #1 had the payments & that I was NEVER notified of any changes as to who I was to write/send the checks to. They had to get the $$$$$ from the mortgage company I had sent it to. I didn’t have any intent to make double payments-—THEY could fight it out..Was done without my input.
I have done accounting/bookkeeping since age 17 in 1957 & this was about 1995. At least I could talk the correct language to them....and ask the right questions.
The “Late Payment” fees were dropped & I got correct payment coupons & addresses rather quickly.
BUT I made it abundantly clear that I had done MY part correctly-—IF they were going to buy existing mortgages-—they needed to notify the loan holder in better fashion.
I got more than a little salty about it, also.
One lady got a bit smart ass with me about my language & I told her-—YOU are the one dinging MY CREDIT REPORT-——which lasts FOREVER-—I WILL GET EVEN NASTIER IF YOU DON’T CORRECT THIS RIGHT NOW-—OR EVEN YESTERDAY!!!!!!!
Joe Biden and Kamala Harris. Change promised. Change delivered.
If it is as you describe it is not legal. She needs to talk to an attorney, or at a minimum, to the state agency that regulates mortgages in her state.
I did this once when I was overcharged in a refinance. One bank said it was the other one's responsibility and the second one said it was up to the first one. The state Department of Real Estate told them both to fix it and in less than a week I got a check from each for half of the overcharge.
It sounds like it is as the terms shouldn’t change. She might want to talk to a lawyer.
“They have payroll and office space built up for a higher volume of mortgages than are being processed “
So the headline, “losing money for each mortgage they finance”, is not accurate. They’re make money on each mortgage they finance, but don’t have enough mortgages to turn a profit.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.