Today’s Topics Wymac Capital, Inc. Mortgage Market Top Line Niches that may help your clients Q&A
Wymac Capital, Inc.Who We Are Mortgage Broker since 1991 Working with CPA’s since 1998 Patented origination system that: Documents all work the CPA does on each loan Ensures comprehensive compliance Allows CPA to earn a share of loan revenue Currently working with over 100 CPA’s and Financial Professionals
Top Earning Cypher™ Partners Rank Number of Total Compensation Avg. Per Loan Loans 1 20 $69,664 $3,493 2 16 $27,850 $1,741 3 13 $17,234 $1,326 4 10 $15,866 $1,587 5 9 $14,273 $1,586 Total Avg. Loan Size Loans Per Avg. Per Loan Loans Cypher™ Agent Compensation 236 $413,762 3.6 $1,753 2011 results – active agents
Wymac Capital, Inc.Who We Are We have signed working agreements with 11 different conventional lenders Contracts reviewed and altered appropriately to protect our agents/CPA’s Able to access most Fannie/Freddie/FHA/VA programs Private funding also available
Current Lending Environment Myriad of Govt. regulations since 2008 have added costs, time and difficulty to lending CPA’s work remains the same Fewer lenders – over 388 have Imploded since 2006 High consumer demand but 1 in 3 denied* Interest Rates Have Been On A Steadily Declining Curve for 6 Years. *federal reserve statistics
Future Forecast Rates projected to remain low for extended period* Experts say Real Estate values have “bottomed”. Buyers think otherwise “Further policy stimulus likely would be necessary” – FOMC meeting June 2012** More regulation likely *Source: Wells Fargo Economists Forecast ** Federal Open Market Committee
Helping Your ClientsWith the CPA’s Guidance We Suggest Solutions and Opportunities toClients True No Cost Refinances Purchases with 3 ½ per cent down Cash recouping refinance on all cash purchase HARP 2 We navigate the lending guidelines and find the best we can for the client
Helping Your ClientsTrue No Cost Refinance We can structure a refinance so the Lender pays for all the loan costs Yes, the money is built into the rate – But many times its to the clients advantage to have all fees paid Unless rates have “bottomed” don’t pay fees Many internet lenders say “no cost” but borrower still pays 3rd party fees We price with a “pad” to cover unanticipated costs
Practical Example Loan Type 15 Year 15 Year Fixed 15 Year Fixed Fixed Interest Rate 2.875% 3.000% 3.125% $300,000 Loan Amount Pts/Prem. Price (-.211%) (-.814%) (-1.146%) Cost (credit )to Borrower Estimated Fees $2,840 $2,840 $2,840 Dollars for Closing $633 $2,442 $3,438 Costs (Cost) Net Closing Costs $2,207 $398 (-$598) Cost (credit )to Borrower Applied towards Interest Lender pays the broker a 1.5% commission regardless of rate
Helping Your Clients3 ½ per cent down FHA FHA offers a purchase loan with as little as 3.5% borrower down payment Parents can be non-occupant co-borrowers We can structure the loan so most loan fees are paid and the tax and insurance impounds as well
Helping Your ClientsRecoup Your Cash 40% of Home Purchases this year could be ALL CASH If you have the cash you can negotiate stronger and close faster Immediate Cash Out Up to 80% LTV (based on purchase price) Primary home, 2nd home and investment (some lenders will not allow investments) Must be arms length and must source cash for purchase.
Helping Your ClientsHARP 2.0 Home Affordable Refinance Program Also known as the Obama Plan, Du Refi Plus HARP 1 began in April of 2009 Enhanced program available 3/17/2012 Almost anyone with a Fannie/Freddie owned mortgage has the potential to receive a market rate refinance
Fannie Mae and Freddie MacLookup How do I know if Fannie Mae or Freddie Mac has my mortgage? Fannie Mae and Freddie Mac have "lookup" forms on their respective websites. Check Fannie Maes first because Fannie Maes market share is larger. If no match is found, then check Freddie Mac. Your loan must appear on one of these two sites to be eligible for HARP.
HARP 2.0 – Real Help?Home Affordable Refinance Program Currently can go as high as 125% of LTV New HARP II loans can go to unlimited LTV This means that if you owe $300,000 and your home is worth $150,000 you can refinance to market rates with no M.I. This could impact any client that is ”underwater”!
Federal Housing Finance Agency (FHFA)Announced Enhancements to HARP Removing the current 125 percent LTV ceiling on fixed rate refinanced mortgages. No appraisal where there is a reliable AVM (Fannie Mae sets a value – just FYI) Extending availability of the program through the end of 2013. Lenders came out strong but have since tightened their guidelines. We can still go unlimited LTV on certain loans