September 16th, 2011 10:47 PM by Eric Fang
According to some industry data, the three lenders didquite well in Q2 of 2011, they are Provident Funding,Chase and Quicken Home Loans.
PF may mkae lots of money on the underwriting feesand some of the appraisal fees. But the profit margins for those ARM loans are very lean because of thoselow rates.
And also depends on the future fixed rates, those ARM rates might be paidoff soon. I already had someclients called to change to 15 yr fixed from theircurrent 7 yr fixed program(with rate around 3% to 3.25%).And if the 15 yr fixed rates lower, we will expect moreborrowers will switch to 15 yr fixed.
And guess what? CMG August volume increased 44% than lastmonth. I guess NYCB August and September volume will increasetoo, but Oct-Dec volume should drop because of their practice change.