Lender Points Charged

[noher]

Recently, an LO of mine started acting really wierd. He was complaining about his Borrower complaining about why the Lender charged the Borrower a Point for doing his loan.

I explained to the LO and the borrower that it is the guidelines of that particular Bank to charge a point to do the clients loan because it was an investment.

Their argument was that no other banks they've ever used had ever charged any "points" for doing a loan. Anyway, long story short, though I clearly understand that certain lenders/banks charge points to give the Borrower a loan or they are getting it at a cost, their driving me nutts with their comments and lack of understanding.

This was a refi, noo, new construction home --- we did the refi on. Any info anyone can give me to help me out.

Thanks.

[j.wehman]

Recently, an LO of mine started acting really wierd. He was complaining about his Borrower complaining about why the Lender charged the Borrower a Point for doing his loan.

I explained to the LO and the borrower that it is the guidelines of that particular Bank to charge a point to do the clients loan because it was an investment.

Their argument was that no other banks they've ever used had ever charged any "points" for doing a loan. Anyway, long story short, though I clearly understand that certain lenders/banks charge points to give the Borrower a loan or they are getting it at a cost, their driving me nutts with their comments and lack of understanding.

This was a refi, noo, new construction home --- we did the refi on. Any info anyone can give me to help me out.

Thanks.


well im sure you must run a branch or something being that you have lo's
then you would know how to come about this.
in the mean time i dont think anyone knows what your trying to ask.
please clarify that so that we can help you out some more

[princess275]

yes it'll be good if you could elaborate,.

[noher]

I apologize for the confusion. I made it more complicated than it should've been --- I must have been on drugs that day...

So, in short the LOS wanted to know why some Lenders charged upfront fees for doing a loan while other Lenders do not.

Example: I put some n/o/o loans through World Savings. They charged the Borrower 1 point to do the loans, while we ran some similar loans through SBMC and there was no cost to the Borrower.

The simple explanation of "each Lender has their own guidelines, investors, etc" wasn't sufficent for their question.

[Sub500]

The Golden Rule

He who has the Gold makes the rule :D

[PaulChapman]

I still don't get it.

Are you asking why you are capped at a certain amount of points on a loan through certain lenders? i.e World you are capped at four...

Are you asking why there was < par rates?

I'm lost.

[OregonLO]

I've never had Worldsavings charge my company a point to broker a loan. They charge an underwriting fee and other fees totally MAYBE $1,000 but that is it. I don't have any lenders other than hard money lenders who charge points up front. We, as a brokerage, charge points up front but that is all I know of.

[IntlMtg]

The Golden Rule

He who has the Gold makes the rule :D

Isn't that the truth. The sooner borrowers and LOs learn that the better :D

But to your question it's really a matter of pricing. Right now many investor loans with some lenders can only be done at a cost, depends where the rates cap out and what the seconday dept is trying to sell. I think 1 point was very very cheap. (though world savings has always been a bit special and done things their own way).

I recently had loan with UBS. AE called and said rate had gone from 7.875 at par to 8.9% costing 14 Points!!!! and then ironically called me everyday for 2 weeks asking me if I was going to lock it....:eek:

[IntlMtg]

Lenders Who Charge Points?

Easy to show your LOs or Buyers most banks do charge points. Go to any retail bank site and look at their posted rates, most show at least some options that cost points. ie today citimortgage is showing all their fixed loans at a cost.

[noher]

You know, there's just a lot of people in this industry that just want to cry about everything and don't understand that Banks have to make money some how... They want to look good to their Borrowers but don't understand or want to understand the process.

[power broker]

your not giving enough information. Can you be more specific so I can see about helping.