GSE Desktop and Hybrid PPT

[Mejappz]

The beat goes the beat goes on.

 

[glenn walker]

Give me the link for that so I can see exactly what they are including.

At least half of the bay area mortgage originations have to be greater than $1 million. And the percentage in LA and San Diego is not small. That includes only purchase and refinance originations. Then you have all the other banking products like construction loans and helocs.

GSE's are less than 50% of banking.

This year about 25% in Bay Area -Silicon Valley are paid for all cash and 30% to 50% cash down payments which brings many of them down to conforming jumbo loan limits . Also the Bay area is not the biggest market share in California. The Silicon Valley only has about 3,000,000 million people in it. Los Angeles County has 10,000,000 million people and add in adjacent Orange-Riverside-San Bernardino -San Diego and you are looking at about 11,600,000 million people or over 21,000,000 million total for just five counties.

On single family construction loans are interim loans and once permanent loans are placed on them most are sold to GSEs and other agency's. Yes we have commercial loans that are portfolio and home equity lines etc but Major Money Center Banks like Wells Fargo Bank America -Chase US Banks etc and the large mortgage bankers like Rocket Mortgage etc sell their residential loans. Its all about how many times a year you can turn turn your portfolio over as thats where fees are generated up to 6 -7 times a year. . A Million Dollar portfolio loan is dead money at 3% +/- rates .According to the California Mortgage Bankers Association 30 percent of all mortgages are typically underwritten through portfolio lenders. That is in line with a total of GSE and other agencies who purchase and package into mortgage backed securities at around 65% to 70%

 

[Joe Flacco]

This year about 25% in Bay Area -Silicon Valley are paid for all cash and 30% to 50% cash down payments which brings many of them down to conforming jumbo loan limits . Also the Bay area is not the biggest market share in California. The Silicon Valley only has about 3,000,000 million people in it. Los Angeles County has 10,000,000 million people and add in adjacent Orange-Riverside-San Bernardino -San Diego and you are looking at about 11,600,000 million people or over 21,000,000 million total for just five counties.

On single family construction loans are interim loans and once permanent loans are placed on them most are sold to GSEs and other agency's. Yes we have commercial loans that are portfolio and home equity lines etc but Major Money Center Banks like Wells Fargo Bank America -Chase US Banks etc and the large mortgage bankers like Rocket Mortgage etc sell their residential loans. Its all about how many times a year you can turn turn your portfolio over as thats where fees are generated up to 6 -7 times a year. . A Million Dollar portfolio loan is dead money at 3% +/- rates .According to the California Mortgage Bankers Association 30 percent of all mortgages are typically underwritten through portfolio lenders. That is in line with a total of GSE and other agencies who purchase and package into mortgage backed securities at around 65% to 70%

Yeah man, 30% Portfolio.

That is not "very few" like you are saying. California is at least 30% portfolio. Probably one of the states with highest percentage of portfolio.

30% portfolio, 25% Ginnie, 45% GSE's.

 

[glenn walker]

Yeah man, 30% Portfolio.

That is not "very few" like you are saying. California is at least 30% portfolio. Probably one of the states with highest percentage of portfolio.

30% portfolio, 25% Ginnie, 45% GSE's.

30% is not a lot as back in the day it was like 70%. Also a lot of portfolio loans are later packaged in bundles and sold to GSEs. If we ever see rates at 5% plus then things will change.

 

[Joe Flacco]

30% is not a lot as back in the day it was like 70%. Also a lot of portfolio loans are later packaged in bundles and sold to GSEs. If we ever see rates at 5% plus then things will change.

30% is solid.

That is more than Ginnie (FHA/VA) and less than GSE's.

 

[George Hatch]

I don't think the corporate buyers have been getting GSE financing.

Even California's median is below $700k. And the percentage of deals that are financed with high LTV mortgages are lower in the upper priced properties because buyers are more commonly bringing in larger down payments.

 

[Non Sequitur]

No one on the bank side cares, most banks operate the mortgage/GSE side as a separate entity. And as far as risk, for the odd ball bank who mixes retail and GSE lending, if it fits into the GSE box there will be zero push back from anyone looking at risk.

 

[NJAPRAZE]

I don't... I'd suspect the sentiment is that the desktop and/or hybrid will be somewhat less costly than a full inspection SOW, but if, as the agencies say, the true value of an appraiser is in the analysis, not the inspection, then I wouldn't think the cost would be substantially less... my guess is that the time savings is more important to the lenders/intended users than the fee is... (generally speaking)

I agree with you that the overall cost won't be signif less (to the end-user) or different than current
Issue will be finding people to do them... since AMCs are only offering like $75-$125 to do them~! (i.e. +/-20% of TOTAL APPRAISAL FEE - assuming +/- $500 for 1004 - to appsr, with another+/- $15-$50 to pay the "field insp" -> with balance covering AMC "tech fees" & profit); significant loss in revenue for appraisers... for the same "analytical" work & liability (i.e. E&O).

 

[alebrewer]

I agree with you that the overall cost won't be signif less (to the end-user) or different than current
Issue will be finding people to do them... since AMCs are only offering like $75-$125 to do them~! (i.e. +/-20% of TOTAL APPRAISAL FEE - assuming +/- $500 for 1004 - to appsr, with another+/- $15-$50 to pay the "field insp" -> with balance covering AMC "tech fees" & profit); significant loss in revenue for appraisers... for the same "analytical" work & liability (i.e. E&O).

yeah, I don't think the AMC's will be able to settle out in that price range once they get inundated with these types of orders...

 

[J Grant]

I agree with you that the overall cost won't be signif less (to the end-user) or different than current
Issue will be finding people to do them... since AMCs are only offering like $75-$125 to do them~! (i.e. +/-20% of TOTAL APPRAISAL FEE - assuming +/- $500 for 1004 - to appsr, with another+/- $15-$50 to pay the "field insp" -> with balance covering AMC "tech fees" & profit); significant loss in revenue for appraisers... for the same "analytical" work & liability (i.e. E&O).

I believe the $75-$125 is for a short form desktop portion for home equity of other purpose, and not the origination loan 1025 or 1004 or 1073 hybrid ?

Seems like two different products, though I could be wrong -