Refinancing or buying a home doesn’t have to be Stressfull.
Banks want out of the Mortgage business.
JPMorgan Chase CEO declares mortgages bad for business. Jamie Dimon is not a fan of home loans
Okay, so here we are with the second quarter of the year upon us and yet another opportunity to to obtain a historically low rate. This is the third time this year that mortgage rates have visited this low.
What no one knows; is will this be the last time rates hit these low’s, as the market weighs the possibility of Fed Funds Rate Hike.
Refinancing or buying a home doesn’t have to be Stressfull
With rates so low many have refinanced at least once, even twice. But there are still many who have not, due to either not wanting to deal with the stress of gathering documents and not sure of qualifying for a loan. At North Atlantic you receive attentive personalized service
(see what our clients say).
Beleive me, it’s a great deal easier with our help and expertise.
The average time to close a loan is about 30 days. We monitor real time interest rates, which is why our clients are able to access some of the lowest rates available. We understand the guidelines and know what different lenders can do, which incresaes your opportunites for a fast easy loan with a great rate.
Don’t put it off any longer and start saving with a lower mortgage payment. There are no salesman to speak with only qualified mortgage experts.
Call me, John Sauro for a free consultation. 877-794-5363.
Banks want out of the Mortgage business.
The Dodd-Frank Financial Regulatory Reform Bill has made it next to impossible for banks to provide home financing. The bill has cost banks, lenders and mortgage companies millions in legal and compliance fees in order to keep up with this burdensome over regulation. The unintended consequences of such regulation makes it much more difficult for consumers to obtain financing to buy or refinance their home. A good example is JP Morgan Chase, as noted in the article below.
JPMorgan Chase CEO declares mortgages bad for business. Jamie Dimon is not a fan of home loans April 8, 2016 Ben Lane
JPMorgan Chase CEO Jamie Dimon did more than predict a coming economic crisis in his yearly letter to shareholders.
In his letter, Dimon also openly questioned why the bank is still in the mortgage business, a question that Dimon says is a “valid” one given the current environment.
“The mortgage business can be volatile and has experienced increasingly lower returns as new regulations add both sizable costs and higher capital requirements,” Dimon writes.
“In addition, it is not just the cost of the new rules in origination and servicing, it is the enormous complexity of those new requirements that can lead to problems and errors,” Dimon continues. “It is now virtually impossible not to make some mistakes – and as you know, the price for making an error is very high.”
Dimon goes on to say that the megabank has reduced its number of mortgage offerings from 37 to 15. One of those products that Chase is cutting back on is its Federal Housing Administration lending program.
Dimon writes that FHA lending is currently “too costly and too risky” to pursue extensively.
“We have dramatically reduced FHA originations,” Dimon writes. “Currently, it simply is too costly and too risky to originate these kinds of mortgages. Part of the risk comes from the penalties that the government charges if you make a mistake – and part of the risk is because these types of mortgages default frequently.”
And when those mortgages default, Dimon writes that servicing them is cost-prohibitive as well.
“In the new world, the cost of default servicing is extraordinarily high.,” Dimon writes. “If we had our druthers, we would never service a defaulted mortgage again. We do not want to be in the business of foreclosure because it is exceedingly painful for our customers, and it is difficult, costly and painful to us and our reputation.”
Dimon said that while the bank by scaling back its FHA lending significantly, it opens itself up potential violations of its Community Reinvestment Act and Fair Lending obligations, but states that the bank has a plan.
You can read Dimon’s entire 50-page letter to shareholders here
Sources: John Sauro, NAR, TBWS, CNBC, Bloomberg
Rates are subject to change without notice. The rate of 3.625% with an APR of 3.676% is for a 30 year fixed rate loan with a conforming loan amount up to $417,000 purchase or rate & term refinance with a max loan to value of seventy percent and a 740 credit score and a $2735 origination fee.