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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

#401

Post by ak217 »

davio wrote: post #380
ab_testing wrote: post #348

Earlier quoted context omitted.

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.

Kind of funny that 60 days is too long for a product that lasts 30 years. My guess is local banks and credit unions are the most likely source. They keep the loans on their portfolio instead of selling them like the mortgage companies.

A 200 day lock is a call option on a loan, the price of the option changes all the time. What you're saying is that local banks/CUs would offer such an option for free. Someone has to pay for the option - in the scenario you describe, the bank/CU would pay for it by losing liquidity of its assets, then having to mark them down.

Rate locks are backed by rate swaps. The cost of purchasing a rate swap ultimately comes out of your pocket in the form of additional rate on the loan (the lender can add overhead of course). The cost of rate swaps has doubled in the past 3 months and quadrupled in the past 18 months. I believe it's currently around 3% on 10 year loans, so a 60 day lock on a $500K 10Y mortgage would cost about $2500 while a 200 day lock would cost over $8000.

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

#402

Post by ac29 »

Beldin wrote: post #129
hans1729 wrote: post #118

Earlier quoted context omitted.

> Going into debt at the lowest interest rate you'll ever be offered to buy a leveraged asset that's likely to increase in price and reduce the overhead you pay on your largest expense, housing, and hedge against the risk of rent increases and security against the whims of landlords? Look, if I had enough money around, I'd maybe consider the gamble. But I don't want to buy property to sell it later, I just want to li…

Around here, monthly rent is as high as or higher than mortgage payments. With mortgage payments, you accrue ownership (for the "standard" mortgages around here). If you expect house prices to remain stable or increase during your residency in a property, ownership financially makes more sense.

Where do you live? Mortgage rates are over 5% now, which means >$5k/year per $100k mortage just in interest.

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

#403

Post by pempem »

adoxyz wrote: post #358
ab_testing wrote: post #348

Earlier quoted context omitted.

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.

Got 90 days from NASB - worth checking out.

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

#404

Post by bradfa »

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 didn't even know this was a thing, selling off the servicing of loans. Our first home's mortgage was with HSBC and HSBC did everything, up until we sold that house. Our second (now current) home mortgage was with a local credit union and they did everything, too.

Dealing with the local credit union was super easy for everything. Not that HSBC was bad, but the credit union was always local people to talk to and never any problems.

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

#405

Post by redshirtrob »

bombcar wrote: post #361
AviationAtom wrote: post #292

Earlier quoted context omitted.

Our bank sold our loan before the first payment even came due. That said, they were phenomenal during the whole origination process, and they gave us a rock bottom rate (2.375%). My only fear is servicing being transferred multiple times, rapidly, then having to decipher who to pay now.

The banks are really surprisingly good about forwarding payments, I found that a mortgage had been sold months before but the autopay from my bank kept working; it wasn't until I went to login that I realized it had been sold off.

Exactly. I've had a bunch of different mortgages over the years. Plenty of them have been passed around, but I've never had to sweat the details. I just set up autopay and forget.

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

#406

Post by Arubis »

lmt55 wrote: post #276
lotsofpulp wrote: post #192

Earlier quoted context omitted.

>After all the boomer generation, on average, has over-provisioned for old age, whereas millenials are still underhoused. Have they over-provisioned? Everything I have read indicates meager savings for the vast majority of the population, who will need to rely on Medicaid and Social Security to eek out the remainder of their living costs. Nursing home care is especially costly in the event one does not die quickly, a…

I think the reality is more subtle. A large number of poorer elder people will be in dire financial straits, forced to work beyond their ability to do so and unable to pay for health care. However there are also a smaller number of extremely rich baby boomers and a very large number of comfortable middle-class ones. The former will obviously pass on large amounts of wealth. The latter have been forced to save large a…

> This group has tended to save for the 'worst case' scenario - a long retirement of leisure spending, followed by drawn out old age with significant care needs. Most of them will not need all this capital [...]

Sure sounds like this group would have had happier, more rewarding life experiences, and at a macro level made a more appropriate investment of effort, had they been able to trust a social safety net.

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

#407

Post by xadhominemx »

ClumsyPilot wrote: post #367
xadhominemx wrote: post #332

Earlier quoted context omitted.

If millennials were not buying homes at similar rates to their parents, the home ownership rate would be declining

There is no need for hypotheticals, we know for a fact they are not buying homws at a similar rate as their parents

Home ownership rates for people under 35 is the same as it was in the mid-90’s and only a few % lower than it was at the peak of the housing bubble

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

#408

Post by pc86 »

ak217 wrote: post #401
davio wrote: post #380

Earlier quoted context omitted.

Kind of funny that 60 days is too long for a product that lasts 30 years. My guess is local banks and credit unions are the most likely source. They keep the loans on their portfolio instead of selling them like the mortgage companies.

A 200 day lock is a call option on a loan, the price of the option changes all the time. What you're saying is that local banks/CUs would offer such an option for free. Someone has to pay for the option - in the scenario you describe, the bank/CU would pay for it by losing liquidity of its assets, then having to mark them down. Rate locks are backed by rate swaps. The cost of purchasing a rate swap ultimately comes o…

Who the hell is buying 10Y mortgages?

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

#409

Post by pc86 »

adoxyz wrote: post #358
ab_testing wrote: post #348

Earlier quoted context omitted.

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.

We got a 90 day from Chase in February for nothing, all we had to do was ask for 90 instead of the 60 they wanted to give us, and after about 10 seconds of typing he said that was fine. I think we're a far cry away from "the days of 60+ day rate locks are over"

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

#410

Post by woeirua »

I won't feel one ounce of pity for the "investors" who lose their shirts when this bubble finally pops. We should regulate investors almost entirely out of housing. Yes, there is still a need for people with lots of capital to go in and repair dilapidated homes. But we don't need people hoarding homes and renting them out as AirBnbs.
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