Posted To: Pipeline Press
Experienced mortgage loan originators (MLOs) know that a rate lock is a rate lock. The removal of the adverse market fee of .5 for conventional conforming refis above $125,000 has caused conversations about pricing, borrower, and profit strategy. One veteran MLO wrote to me and stated, “If the price had worsened, we wouldn’t be going back to borrowers for that difference. It’s not a one-way street. My borrowers don’t know what the FHFA is, but know their locked rate. My company is not repricing its entire locked refinance pipeline. If asked, and I doubt if I will be, I will explain to my borrowers that a lock is a lock. And none of them want to start the process over again with a new lender for .125 in rate when rates are already great on a refi.” A veteran capital…(read more)
Source: Mortgage News Daily
