Posted To: Pipeline Press

Huh? Rates don’t continually go down and then stay there for an indefinite period of time? No, they don’t. There’s this opinion piece in the Wall Street Journal: “We’ll Have Herd Immunity by April. COVID cases have dropped 77% in six weeks. Experts should level with the public about the good news.” Every lender will tell a client that good economic news is bad for lower rates. We return to the question of, “What’s a lender’s cost to create a servicing asset worth a point?” Yes, yesterday’s rate move was dramatic (we’re already seeing rates come back down slightly this morning, as you’d expect), but lenders are already reminding their production force about monetizing their own database. Is the servicer staying “front…(read more)

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Source: Mortgage News Daily