Why Floating Your Mortgage Rate Is Like Peeing At The Golf Course

As a mortgage originator, I have always equated floating the mortgage rate like peeing at the golf course - you just hope you don't get caught with your pants down!

When you are floating your client's mortgage rate, you figuratively have your pants down. You are exposed to the whims of the mortgage backed securities market. Sometimes you win, sometimes you lose. I don't know about you, but I lose this proposition more than I win. When you float the rate, urine for trouble! (Hee Hee).

So as a mortgage pro, what is the best strategy to get the rate your client wants?Personally, I try to use lenders that have a good rate re-negotiation policy. Wells Fargo has a good policy. You can float down to a lower rate by adding .375% to the fee. Citimortgage also renegotiates (I'm not sure exactly what their policy is, but I have re-negotiated with them). Met Life and Suntrust, I have found, are pretty stingy.

Are there any other lenders out there that will let you leak (another bad joke) down to a lower rate or fee?

HVCC And The Lender Decision

A client of mine told me today he would like to get started on a refinance. He asked me who the lender is going to be. I told him the four main lenders I am using right now are Bank of America, Wells Fargo, Citimortgage, and Suntrust Bank. He was OK with those lenders. He wants to float his rate. He sent me his documents and gave me his credit card number to order the appraisal.

Like our old buddy George up above, I'm feeling a bit confused - which lender do I order the appraisal from? Ordering an appraisal used to be easy, pre-HVCC. Now I have to think about these issues:

- Citimortgage has the best rate for this client today
- Wells Fargo does not have the best rate, nor the best turn times, but they have the best float-down policy
- Bank of America and Suntrust have the fastest turn-times, but their renegotiation policies are not as competitive

My gut tells me to go to Citimortgage, so that is my plan of action. If one of the other lenders comes out with aggressive pricing for this client, I will have to get the appraisal from Citimortgage. I have not had the wonderful opportunity of asking a lender to release an appraisal to another lender - I am sure some of you have.

Do you have any stories to share about this process? I am sure we would all love to know the most efficient way to make it happen quickly.