Mortgage Blog

According to some industry data, the three lenders did
quite well in Q2 of 2011, they are Provident Funding,
Chase and Quicken Home Loans.

PF may mkae lots of money on the underwriting fees
and some of the appraisal fees. But the profit margins
for those ARM loans are very lean because of those
low rates.

And also depends on the future fixed rates, those
ARM rates might be paidoff soon. I already had some
clients called to change to 15 yr fixed from their
current 7 yr fixed program(with rate around 3% to 3.25%).
And if the 15 yr fixed rates lower, we will expect more
borrowers will switch to 15 yr fixed.

And guess what? CMG August volume increased 44% than last
month. I guess NYCB August and September volume will increase
too, but Oct-Dec volume should drop because of their
practice change.