“Just Because the Fed Cuts Rates –
Not All Lenders Lowers Theirs!”.
At least, not to “ALL” of their current clients!
With rate cuts on the horizon, your clients often turn to you for info on how to react and whom to apply with.
Borrowers Before You Choose a Lender – Ask These Questions.…
and Demand These Service Levels
Let me (briefly) reveal how Institutional Lenders (banks /credit unions) and so-called “Mortgage Bankers” ( hence known as “ILMB” s) “game” their current lending clientele.
Slow Lending Service = Higher Profits for “ILMBs”
Banks “Preferred Clients” Get the Lowest Rates –
“ILMBs always offer their preferred banking customers the best rates and fastest service, and that’s no surprise to anyone.
As for the “Rest of Us Rabble” (lol), “Take a Number.”
These 10 Data Points Determine a Borrower’s Rate
If an institution has tens of thousands of borrowers in its lending portfolio (at higher rates than the market), why would it “staff up” and encourage them to refinance to lower rates?
Hint: They don’t!
But “ILMBs” can ” appear to start the process quickly (as they already have all the borrower’s information), making borrowers reluctant to change lenders no matter how bad the service gets.
“We Got Ya” Literally
For “ILMBs,” it is all about control.” over borrower’s data
They sell your private info to data brokers willing to purchase “YOU” !
News Events That Drive Interest Rates
Rates change daily, and every day, the homeowner is “stuck” with a higher-than-market interest rate, which is simply one more day in the bank profits.
Multiplying this daily factor by tens of thousands of home loans amounts to a daily windfall for the “ILMBs.” And it’s one more day homeowners throw away $$ on their current mortgage.
“We’ve Sold Your Loan”
Starting All Over for the Homeowner
When rates begin to decline significantly, “ILMBs” are quick to “bundle” their large mortgage portfolios to “quickly sell” (dump) them to Wall Street hedge funds (at a premium) and pocket a tidy profit.
“Customer Service from Hell”
When the homeowner calls the new lender to refinance, the latest loan servicer’s inbound telemarketer begins (again) the refi process.
A timeline of the Fed’s ”22–’23 rate hikes & what caused them
“This is what many borrowers were told until March 2022 through 2023.
The lender’s “inbound telemarketer” reassures the homeowners that they have “plenty of time” to “play the market,” as they just passed their loan application to another clerical staff member.
Money is a Commodity, Just Like Oil, Gold, and Stocks.
When lenders have more business than they can handle, they don’t lower their prices (rates) any more than any other business and reap the larger profits.
Borrowers are Often Their Own Worst Enemy.
There are clear market trends, but borrowers who try to “time the interest market” may as well try to “time roulette wheels” in Vegas.
Many borrowers apply once the rate cuts have happened, which is by them a “day late and a dollar short.” thereby sabotaging their own self-interest.
In Conclusion – “Trust But Verify”
Here are four frames from my YouTube tutorial. In less than two minutes, these clips will show you how to avoid getting “played” by any lender.
10:21 Never Pay Points or Junk Fees.
10:54 Reviewing the “Truth in Lending” Disclosure
11:15 Exposing a Lender’s Junk Fees (Section 2a)
11:32 Reviewing the APR Calculations
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Call Me!
I look forward to the opportunity to live up to your professional expectations and my own reputation.
Daniel Dobbs (.org)
Mutual Home Mortgage
Cell: 949 250-3981
