Hello, first post, what's going on?

[Simon]

Hi there, i just moved to LA from NY, i'm originally from the UK. Anyway, i am now a loan consultant / officer for a fairly new brokerage in Los angeles.

It seems i moved here the week eveything went crazy! ha ha

I am familiar with how the business works, and i have listed to training and read as much as possible, and am now in the joy-less stage of calling leads and trying to refi, originate etc.

It seems very unstable right now, and i really need to make a deal within 2 months in order to survive.

Could admin, or someone tell me roughly where the mortgage industry is at currently? I was going to be calling to refi people, but it seems the refi business is dead, at present i am trying to switch cold leads from INT Only loans to stable, fixed loans.

Is that a good idea? I have no in-house company support, just me and stacks of leads and a phone.

Which type of leads would give me the best chance to survive in the next 6-8 weeks??

Thanks for ANY advice you can offer me. Hopefully i'll make it...

[Business]

Industry is moving toward Fannie and Freddie products. DU is your friend. FHA has been good to me lately.

Be wary of Countrywide

[Simon]

Thanks for your reply. Sorry, but what is 'DU'?

I have a load of title leads from Countrywide, plus lots of other sub-prime leads in CA. (All around 1%)

Could you tell me which angle to go at this from? FHA are government loans right? What is the best type of loan to be selling to the sub-prime (1%) people out there?

Thanks...

[Business]

lets see I think DU = Desktop Underwriter there are several systems like that, DO, LP etc.

basically its automatic underwriting to sell to the GSE's (Fannie or Freddie).

If you can get an approval through the Automated System it will help you out big time in getting someone to pick up the loan. It does cost $$ to run the system I believe but sometimes banks will hook you up for free.

For instance, We run all our DU through Wachovia Bank for free, and its nice because they have a DU What-if, so if you get a 'Not Eligible' response, you can modify certain parts of the 1003 and re-run it as many times as you want until you get an 'Approve/Eligible' so you know exactly what you need to make it fly.

FHA=Gov't. It has its own rules and restrictions, and requires that you get a sponsorship. The rates are good and so is the pay, They lend 97% usually, and the other 3% can be a gift. for more info consult Google.

Subprime was/is our niche, but the lenders are dropping like flies. Try FHA or MyCommunity (No FiCO needed, can use timely payment of car insurance or cell phone bills or utilities as tradelines).

[Simon]

Ah ok, yes i have been today messing about on the Bank of America wholesale website, where it is possible to see loan scenarios and price out loans. Is that what you mean?

Can i do FHA and MyCommunity loans for the sub-prime people in CA that i am calling?

I am limited to CA, so i just need to know more about, which type of people to be calling. I need to make a deal within the next month.

[Business]

Yeah MyCommunity can work for Subprime, so can FHA.

If your looking for the last true subprime lender, call your Countrywide rep. I just talked with mine (who coincidentally was our New Century rep before )
and he priced me out on a 575 FiCO, 95% LTV, @ 8.5% (1.75)



Many people don't like CFC but, who else is doing that?!?!