Thursday Morning - Quality over Quantity brought to you by ill

[williewilliejuan]

Bought the house last year. The bank we originated the loan with sold that shit within days.

That’s pretty standard. Very few lenders hold loans. They likely sold the loan one place and the servicing to another.

 

[PeoplesChicken]

That’s pretty standard. Very few lenders hold loans. They likely sold the loan one place and the servicing to another.

Why is that? Do they make money on it?

 

[PeoplesChicken]

@Flavortown Tebow bank

 

[redseat]

That's so reckless

 

[Deep Dish Pizza Goat]

@Flavortown Tebow bank

Don't even know who fucked this up.

Insurance guy is top notch, so he called the new lender to get it figured out.

Originating bank apparently gave new lender wrong information.
New lender gave insurance company wrong information.

Yet somehow we got an escrow overage check a couple months ago...

 

[PeoplesChicken]

Don't even know who fucked this up.

Insurance guy is top notch, so he called the new lender to get it figured out.

Originating bank apparently gave new lender wrong information.
New lender gave insurance company wrong information.

Yet somehow we got an escrow overage check a couple months ago...

Obviously will never happen, but if its their fuckup they should pay for it to make it right or at least get you current

 

[PeoplesChicken]

Don't even know who fucked this up.

Insurance guy is top notch, so he called the new lender to get it figured out.

Originating bank apparently gave new lender wrong information.
New lender gave insurance company wrong information.

Yet somehow we got an escrow overage check a couple months ago...

NB4 Fish comes and tells you how this is your fault and he would have handled it

 

[williewilliejuan]

Why is that? Do they make money on it?

Yes. Plus they don’t want to tie up capital. Nearly all loans are sold within days to Fannie, Freddie or Ginnie (depending on the type of loan). They‘ll make a small spread on that, but more importantly they’ll clear up warehouse capacity by selling it (they borrow money from someone else so they can lend it to you).

Servicing sale depends on their overall strategy. It’s a continuous income stream, but it’s a drain on capital. It’s often better to sell it away unless the lender is large enough to have a significant servicing portfolio.

 

[PnkPanther]

Why is that? Do they make money on it?

Yes, they sell the loan for a premium. Services makes the money on interest and lender freed up capital to loan out to additional people

 

[PeoplesChicken]

Yes. Plus they don’t want to tie up capital. Nearly all loans are sold within days to Fannie, Freddie or Ginnie (depending on the type of loan). They‘ll make a small spread on that, but more importantly they’ll clear up warehouse capacity by selling it (they borrow money from someone else so they can lend it to you).

Servicing sale depends on their overall strategy. It’s a continuous income stream, but it’s a drain on capital. It’s often better to sell it away unless the lender is large enough to have a significant servicing portfolio.

Interesting

 

[PnkPanther]

I "volunteered" for a committee at work

and by "volunteer" it was my bosses boss informed us one of us had to join

 

[PeoplesChicken]

I "volunteered" for a committee at work

and by "volunteer" it was my bosses boss informed us one of us had to join

That's not so bad. The spin rate on my balls are declining.

Now THAT is a problem

 

[Deep Dish Pizza Goat]

Obviously will never happen, but if its their fuckup they should pay for it to make it right or at least get you current

They are. It's actually a federal law that they have to pay the late fees associated with it. Just mind blown by all of it because they sent us an overage check on the escrow.

Oh, so you're sending us money back due to excess, but not paying the insurance company... cool, cool.

 

[PeoplesChicken]

They are. It's actually a federal law that they have to pay the late fees associated with it. Just mind blown by all of it because they sent us an overage check on the escrow.

Oh, so you're sending us money back due to excess, but not paying the insurance company... cool, cool.

That's good that you are protected. They should make it right

 

[PnkPanther]

They are. It's actually a federal law that they have to pay the late fees associated with it. Just mind blown by all of it because they sent us an overage check on the escrow.

Oh, so you're sending us money back due to excess, but not paying the insurance company... cool, cool.

overage check is based on a calculation of reported property taxes and home insurance rates, if they calculated higher amounts and your escrow balance was > projected payouts, they'll refund, it it's short they'll ask you for more money

 

[Deep Dish Pizza Goat]

overage check is based on a calculation of reported property taxes and home insurance rates, if they calculated higher amounts and your escrow balance was > projected payouts, they'll refund, it it's short they'll ask you for more money

Yea...

except they didn't pay the insurance company...

 

[PnkPanther]

That's good that you are protected. They should make it right

It's in banks interest to make sure everything is paid

 

[PnkPanther]

Yea...

except they didn't pay the insurance company...

i'm aware, it's just two separate items, so I'm not sure why it's so mind blowing

them F'ing up payment is unrelated to your escrow refund

or if it is, guess what, you'll be giving your escrow refund back and they'd have really screwed up

but yeah, hate dealing with that.

It's also pain if you change insurance clearing it out with escrow

 

[Deep Dish Pizza Goat]

i'm aware, it's just two separate items, so I'm not sure why it's so mind blowing

them F'ing up payment is unrelated to your escrow refund

or if it is, guess what, you'll be giving your escrow refund back and they'd have really screwed up

but yeah, hate dealing with that.

It's also pain if you change insurance clearing it out with escrow

You're not sure how it's mind blowing how I can receive an escrow refund, yet the lender isn't paying the insurance company?

 

[Jeep]

Yes. Plus they don’t want to tie up capital. Nearly all loans are sold within days to Fannie, Freddie or Ginnie (depending on the type of loan). They‘ll make a small spread on that, but more importantly they’ll clear up warehouse capacity by selling it (they borrow money from someone else so they can lend it to you).

Servicing sale depends on their overall strategy. It’s a continuous income stream, but it’s a drain on capital. It’s often better to sell it away unless the lender is large enough to have a significant servicing portfolio.

Who do you work for?