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Started By
Message
Auto refi program rumor?
Posted on 7/29/10 at 5:04 pm
Posted on 7/29/10 at 5:04 pm
LINK
LINK
"There are millions of American's with rates much higher than market rates who can't refi due to lack of equity or income needed to qualify for a new vintage loan. Or, because after all of the new vintage loan level adjustments to the rate and fee structure for being less than perfect it makes the current 4.5% rate into a 6% rate taking away any benefit. We have discussed all of this ad nauseum over the past couple of years.
Their solution is to quickly identify all of the borrowers who are making payments on time and send them a one page refi form, which instantly takes their rate to current market. There would be a few other borrower hurdles but not many. The savings to the home owning consumer would be about $45bb per year, more than the cost of the recent extension to unemployment benefits.
This rumor has a lot of credibility behind it -- all of a sudden copycat reports come out from two credible mortgage shops and GSE premium coupons (5.5% to 6.5%) took a beating this morning -- down 4 POINTS on average. This is because these would get crushed if an auto-refi program was announced."
LINK
"There are millions of American's with rates much higher than market rates who can't refi due to lack of equity or income needed to qualify for a new vintage loan. Or, because after all of the new vintage loan level adjustments to the rate and fee structure for being less than perfect it makes the current 4.5% rate into a 6% rate taking away any benefit. We have discussed all of this ad nauseum over the past couple of years.
Their solution is to quickly identify all of the borrowers who are making payments on time and send them a one page refi form, which instantly takes their rate to current market. There would be a few other borrower hurdles but not many. The savings to the home owning consumer would be about $45bb per year, more than the cost of the recent extension to unemployment benefits.
This rumor has a lot of credibility behind it -- all of a sudden copycat reports come out from two credible mortgage shops and GSE premium coupons (5.5% to 6.5%) took a beating this morning -- down 4 POINTS on average. This is because these would get crushed if an auto-refi program was announced."
1
Posted on 7/30/10 at 8:46 am to tygerstripes
So, do I understand correctly that this, if true, will only apply to government backed (FHA) loans?
Posted on 7/30/10 at 9:31 am to Vrai
FHA/FAA loans, basically anything held by freddie and fanny. At least that's how i read it.
Posted on 7/30/10 at 9:33 am to BeaverPRO
So I guess I am once again the sucker for getting that conventional, non-government subsidized mortgage.
Posted on 7/30/10 at 9:57 am to Vrai
Responsibility does not pay these days.
Just think of all the people who recently refinanced and had to pay points and all of those closing cost to get the same rate these other people may get for free or a reduced cost.
Just think of all the people who recently refinanced and had to pay points and all of those closing cost to get the same rate these other people may get for free or a reduced cost.
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