Entries Tagged 'Mortgage Brokers' ↓

Trump Mortgage, the newest real estate venture from the  Donald, is looking to Florida to be the first state the company aggressively opens offices. The company is looking to have 6 offices open this year, and partner with other lenders.

If Donald Trumps past history is to be followed, the introduction will be loud and in your face, but also reasonably effective.

Last year, this industry did $3 trillion, so it’s huge and there’s no clear-cut leadership,” he says. “There’s enormous opportunity to help improve and lead on a national level.”
Craig Lane has been tapped to run oversee the Florida offices, the first of which will be in South Florida.
“We should have those rolling out in six months,” Ridings says.
Trump Mortgage will offer financing products from residential to commercial, luxury to construction.
Ridings indicates he has already heard from many small mortgage operations hoping to be considered a partner to the new company.

via the  Orlando Business Journal:.

The number of mortgage brokers in the North Carolina Triad area has shrunk by 10 percent, and I would not be surprised if these numbers are  representative of the industry as a whole. There was a an unprecedented number of refinancing and new mortgages being written as interest rates fell to record lows from 2002 to 2004. Since then rate have risen and consequently mortgage applications have slowed down.

Since mortgage industry employment peaked in 2003, the number of mortgage brokers and lenders in the Piedmont Triad has dropped by 10 percent. There were 1,113 people employed in the industry in September 2005, down from a peak of 1,231 two years ago, according to the Employment Security Commission.

Experts say most of job losses likely came from small mortgage companies that did not have the resources to compete as the industry began to slow down following a sharp decrease in the number of refinancings.

“People have just gotten out of the business or downsized,” said Kate Crawford, branch manager of Corporate Investors Mortgage Group in Burlington and the secretary of the National Association of Mortgage Brokers. “We were in a huge growth mode for a while, and now we’re just getting back to normal.”

As the mortgage business boomed in recent years, more people entered the industry, some opening their own firms. The number of mortgage companies in North Carolina climbed from 674 in 2002 to 1,570 at the end of 2005. Triad specific data was not available. via MSNBC.com.

If you are buying a mortgage, one of the ways a mortgage broker will earn a bonus on writing your mortgage is to use a yield spread premium. Say you will qualify for a mortgage at 6.5 percent. The mortgage broker will quote you 6.75 percent on the loan.

If you agree to the 6.75 percent mortgage loan, the broker will get approximately half of difference in a bonus, or in this instance 1/8th of a point of the loan. So if you are looking at a $400,000 dollar loan, the broker is looking to make a bonus of $2,000 for the deal.

And that is why when negotiating for a mortgage talk to a few brokers and let them know you are shopping the deal. This will take away the incentive to raise the interest rate they are quoting you for your mortgage and you can save thousands over the life of the loan.