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Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

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Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#341

Post by mbesto »

doctoboggan wrote: post #281
mbesto wrote: post #191

Earlier quoted context omitted.

I grew up in Chicago and love Chicago, so I'll try to say this as politely as possible - don't expect your property to hold any value in IL. Anecdata - I have friends that lived there for 8+ years, then moved to the south in the last 2 years and their property value barely budged.

I honestly won’t be too upset if that happens especially if it means people aren’t treating housing as high return investment vehicles. Hopefully that means house prices will be more reasonable.

Reasonable prices for you now, sure. But your house is an asset. If you choose to move to Texas, let's say, and the housing asset prices outpaces that of Chicago, you're not going to be happy.

Note - there is a reason housing prices in Chicago are stagnant...people are leaving.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#342

Post by babypuncher »

hans1729 wrote: post #19
cammikebrown wrote: post #2

Seems like the bubble burst is going to be more sudden than we thought. 30 year mortgages are suddenly at nearly 5.5-6%, listings are sitting on the market for longer, and multiple cities are cracking down on Airbnb.

I mean, it's not really a burst, we're just hearing the hissing noise of the obvious leak. The true demand from people with the intend to actually live in the estates has been constantly decreasing since around 2000; the real salarys dropped since then, so did the buying power. The only reasons people found buyers at x3-x10 (!) prices were a) that there is a class of people wealthy enough to still afford the purchase…

And it will probably stay a leak, even if it grows. People keep expecting another collapse like 2008 but that does not seem likely to me. People need houses to live in, so demand will always be there. And unlike 2008, banks aren't handing out sketchy loans en masse to people who cannot reasonably afford them.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#343

Post by MSM »

hnuser847 wrote: post #312
gadflyinyoureye wrote: post #206

I use to be a shareholder of Rocket. Then I tried to get a mortgage with them. I'm self-employed. I make about 200k/year. I had 0 debt (I paid off my house the prior year). I had 20% for up to 350k. I had an 812 credit score. When I applied they asked for my P&R statements for 2 years. The current year showed a $400 deficit (which was due to charitable giving). They said that I was losing money.Therefore I was too gr…

Rocket mortgage is a Fannie/Freddie mortgage mill. If the mortgage doesn't tick all the conventional mortgage boxes and can't be instantly sold the government, they won't write it. You're much better off working with local banks or credit unions, who may be willing to keep the loan on their books.

Yep. But looking at it as a shareholder, I don't think this should have been a negative.

Spending a lot of time to work with an individual client in order to make $1k-$2k or whatever they make ushering a loan over to fannie or freddie is not good business- especially during the recent market.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#344

Post by jjav »

JohnWhigham wrote: post #242
streblo wrote: post #134

Earlier quoted context omitted.

Most people don't do the math and realize that over a long enough time horizon a 30 year fixed mortgage will cost you less than purchasing the home outright. This assumes you take the money you would have sunk into the home and instead invest it at a higher rate of return, which is an option available to most home owners.

Don't forget to factor in all the maintenance costs that one doesn't have to worry about when renting.

You're paying for all those maintenance costs when renting, you're just doing it through a middleman (the property owner) who takes an additional cut so you're paying more.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#345

Post by halfmatthalfcat »

mbesto wrote: post #341
doctoboggan wrote: post #281

Earlier quoted context omitted.

I honestly won’t be too upset if that happens especially if it means people aren’t treating housing as high return investment vehicles. Hopefully that means house prices will be more reasonable.

Reasonable prices for you now, sure. But your house is an asset. If you choose to move to Texas, let's say, and the housing asset prices outpaces that of Chicago, you're not going to be happy. Note - there is a reason housing prices in Chicago are stagnant...people are leaving.

I thought it was IL that had a net loss but afaik Chicago had a net gain.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#346

Post by darrenf »

throw8383833jj wrote: post #328
darrenf wrote: post #171

Earlier quoted context omitted.

I spent most of my 20s thinking, man, fuck home ownership, I'm gonna rent forever (to my knowledge, no-one in my family had ever owned; I grew up in charity housing and inherited nothing at all). Then I got booted out of a place because the landlord wanted to sell. They offered it to me first, but I had no savings for a deposit. The same story played out amongst my friends, repeatedly, and it totally changed my mind.…

house ownership is just a legal construct. you don't really own the house, even when it's paid off. even if you own, and pay off the entire house, you'll still have to pay "rent" in the form of property taxes, an unfortunate reality.

I'm in the UK. AFAIK we don't have any ongoing property taxes to pay, at least not if I have bought the freehold. Leaseholders may have to pay ground rent, but that's often a peppercorn and anything above that is being legislated into oblivion this year[0].

Regardless, ownership is a useful legal construct the benefits of which seem to outweigh those of being a tenant.

[0] https://landlordknowledge.co.uk/ground-rents-banned-under-ne...

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#347

Post by olyjohn »

throw8383833jj wrote: post #328
darrenf wrote: post #171

Earlier quoted context omitted.

I spent most of my 20s thinking, man, fuck home ownership, I'm gonna rent forever (to my knowledge, no-one in my family had ever owned; I grew up in charity housing and inherited nothing at all). Then I got booted out of a place because the landlord wanted to sell. They offered it to me first, but I had no savings for a deposit. The same story played out amongst my friends, repeatedly, and it totally changed my mind.…

house ownership is just a legal construct. you don't really own the house, even when it's paid off. even if you own, and pay off the entire house, you'll still have to pay "rent" in the form of property taxes, an unfortunate reality.

In some places that can be a lot of money. Like New York, I hear property taxes are close to half your mortgage. In places like Washington, property taxes amount to a few thousand dollars a year on a modest house. I'll pay that over $2000/mo in rent any time.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#348

Post by ab_testing »

MarketingJason wrote: post #317

Just closed financing on a home. Rocket had a comparable rate but the real no-go for us was their very-limited rate-lock option. With interest rate trends what they are right now, we really needed a 200 day + rate lock with a float-down in case things changed. Other lenders (builder, ownup options, local banks) offered those and the option to buy points and apply them if we were able to float down. Rocket seemed very…

Could you tell me which other lenders are offering 200 day + lock. With interest rates changing so fast, I get a hard time with lenders letting to lock rates even for 60 days.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#349

Post by ChuckNorris89 »

mbg721 wrote: post #251
antiframe wrote: post #229

Earlier quoted context omitted.

Why do people compare monthly mortgage amount and rent? It misses several big elements to housing costs: taxes, maintenance, closing costs, realtor costs, and opportunity cost of the money tied up. Renting vs buying comparisons need to account for lot more than those two numbers but that's all I see posted most of the time.

Maintenance is a big one. When you pay for an apartment, you're also paying for the landlord to fix plumbing/electrical/whatever issues.

>When you pay for an apartment, you're also paying for the landlord to fix plumbing/electrical/whatever issues.

Not always, in some EU countries, some rental agreements have the tenant pay for certain maintenance, plus insurance.

Re: Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

#350

Post by neaanopri »

mrep wrote: post #193
mbesto wrote: post #191

Earlier quoted context omitted.

I grew up in Chicago and love Chicago, so I'll try to say this as politely as possible - don't expect your property to hold any value in IL. Anecdata - I have friends that lived there for 8+ years, then moved to the south in the last 2 years and their property value barely budged.

Yep, when I was shopping for a condo 2 years ago, basically every place I looked at was selling for the same price as when they were brand new 10 years ago. Good thing though is it is way more affordable than the west coast.

These are the same thing! Property can't BOTH be affordable AND a good investment!
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