Rocket Mortgage to trim 8% of workforce as home-loan market shrinks • Hacker News Board

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

#351

Post by bombcar » Thu, Apr 28, 2022, 5:24 PM UTC

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…

I played with Rocket and some other one - maybe "Better"? - but the rates they had were the same as a "full service" lender I've used before once everything was taken into account.

In the end all of these companies resell their mortgages to the big banks and so the amounts are very similar. It's all in how they get their fees: up front or behind or in points.

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

#352

Post by gowld » Thu, Apr 28, 2022, 5:24 PM UTC

jetti wrote: post #83

I imagine that Rocket increased their workforce by more than 8% between spring of 2020 and now. I work for a mortgage company and layoffs have happened multiple times this year. With rates so low for almost two years the volume increased significantly. In order to deal with that volume the company most certainly had to hire many people and quick. The market conditions can't support keeping those individuals (or at le…

H&R Block must be the harshest cycle, but also most predictable.

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

#353

Post by bitexploder » Thu, Apr 28, 2022, 5:25 PM UTC

Sohcahtoa82 wrote: post #297

bitexploder wrote: post #184

Earlier quoted context omitted.

Most of Denver region had been hot as well.

I've heard Denver is extremely popular because you have all the amenities of a big city (They even have a Six Flags!), yet is right next to beautiful mountains and nature. Some parts even still have a small town feel. Of course, I've also heard that a significant fraction of those moving in are single men, to the point where the city has gotten the nickname "Menver".

We love in Golden. Beautiful small town area. 25-30 from most of down town. 25-30 from myriad nature access. A couple hours gets you almost anywhere. We are in the suburbs so I don’t know about the. Menver meme

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

#354

Post by bitexploder » Thu, Apr 28, 2022, 5:26 PM UTC

onlyrealcuzzo wrote: post #268

bitexploder wrote: post #184

Earlier quoted context omitted.

Most of Denver region had been hot as well.

Basically everywhere beside Chicago and NYC went up >10%.

We sold a house for 2x what we paid for it in a desirable suburb. Bought in 18’, sold 22’.

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

#355

Post by gowld » Thu, Apr 28, 2022, 5:27 PM UTC

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.

Which bubble?

A refi bubble? Maybe (but that's more of a fad than a bubble)

Real estate bubble? Sort of.

Housing affordability bubble? Not really. Interest rates move profits from home sellers to banks.

Housing affordability is driven by supply+demand. Housing prices are driven by" Affordability minus Interest Rates: Low Rates + High Price = Monthly Payment = High Rates + Lower Price

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

#356

Post by bombcar » Thu, Apr 28, 2022, 5:28 PM UTC

jjav wrote: post #340

coredog64 wrote: post #267

Earlier quoted context omitted.

Something to note about your local bank/CU. They might originate the loan, but as sure as water is wet they’re going to sell it to someone else for service. If you have a good working relationship that you can used for good terms, then go for it. But don’t go with a local bank because you think you’ll continue to work with them.

> Something to note about your local bank/CU. Credit Unions tend to be different (at least the 3 I'm a member of, maybe this is not universal) in keeping loans in-house. The banks will indeed most likely sell off the loan as soon as it's done. Not that it matters either way.

My credit onion sells all loans longer than 10 years - but they keep servicing all the loans normally.

Some places sell off the loan and the servicing, that's more annoying.

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

#357

Post by Geeek » Thu, Apr 28, 2022, 5:28 PM UTC

jeffbee wrote: post #12

Makes sense. Nobody needs to refinance at these rates.

Cash-outs are still happening

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

#358

Post by adoxyz » Thu, Apr 28, 2022, 5:29 PM UTC

ab_testing wrote: post #348

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.

Same. I think the days of 2+ month locks are over. I've talked to half a dozen lenders since the new year and the longest lock they'd give without massive upfront fees was 60 days.

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

#359

Post by bombcar » Thu, Apr 28, 2022, 5:30 PM UTC

redshirtrob wrote: post #272

coredog64 wrote: post #267

Earlier quoted context omitted.

Something to note about your local bank/CU. They might originate the loan, but as sure as water is wet they’re going to sell it to someone else for service. If you have a good working relationship that you can used for good terms, then go for it. But don’t go with a local bank because you think you’ll continue to work with them.

Yeah, I could not care less about what they do with the loan. I'm not looking for a relationship, just the best deal I can get. Full stop. Do people still think otherwise on loans? All that said, our local CU does in fact keep their own mortgage portfolio. This may be rare, I don't know. They're a large CU associated with a government contractor. When I bought my house they had the best deal (rate + closing costs) ha…

I prefer that the servicing stay with the CU/bank I was working with, but wouldn't pay "that" much more for that, a couple hundred sure, actual percentage/points difference? nah.

I had a loan that got passed around a number of times back in the day, ending up with Countrywide each time.

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

#360

Post by bilbo0s » Thu, Apr 28, 2022, 5:32 PM UTC

halfmatthalfcat wrote: post #345

mbesto wrote: post #341

Earlier quoted context omitted.

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.

Yeah, commenter definitely conflated Illinois with Chicago.

I would not classify Chicago as anything close to an "affordable" housing market. Probably a toss up whether the least affordable area in the midwest to median income earners is Chicago or Minneapolis? Either area, you will be paying through the nose compared to, say, here in Wisconsin.