September 24th, 2012

Super-Sized Loans, Part IV: The FHA/VA lending opportunity

Posted by at 4:52 pm

Being a Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) lender helps mortgage lenders accommodate about 30 percent more pre-approval requests. With so many high-balance home sales in California, lenders have found FHA and VA loans to complement their offering of agency jumbo loans. With the expiration of the temporary high balance conventional loan limits, borrowers are looking to FHA and VA as an alternative. Today the maximum conventional loan is $625,500 for the highest median home markets. However, FHA still insures loans for 1 unit homes to $729,750 in the highest median home priced markets (more for 2-4 units). VA is allows borrowers to qualify on a completely different schedule. They will insure 25% of the difference between the VA Loan limit by County and the lesser of the value or purchase price. The max VA will...
Read more
September 3rd, 2012

Ask Our President: Business Models for Mortgage Brokers Versus Mortgage Bankers

Posted by at 12:02 pm

Could you define which business models are best for the mortgage broker and which are best for the mortgage banking branch? There is just such a mixed bag out there that I don’t think you can pin it down to saying that a certain model works best. I think it’s more in each individual circumstance and how professionally run the mortgage brokerage operation is. Bay Equity has a diverse group of retail offices that drum up business in all different ways, from a call center model to purchase business-driven realtor relationships, to long time LOs who have their own book of business. We also have a new branch in San Francisco that fits the last category. Manny Kagan’s office is the longest-running mortgage brokerage in San Francisco, having opened its doors in 1984. Manny has loan officers who have been...
Read more