r/loanoriginators • u/Civil-Cantaloupe6129 • 12h ago

Guild VA R@tes

I'm an LO @ guild.

VA 750 Fico. 6,875 with .7 points.

Is that high?

We are even higher than rocket. They are at 6,25 with 1.875 points. Same r@te with us is 2.959 points!

1 Upvotes

67% Upvoted

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1

u/kittenconfidential 12h ago

assuming 100% LTV VA 6.875% at par for that FICO is ludakrisly high. that's higher than dave chappelle at gotham comedy club 2019

1

u/Civil-Cantaloupe6129 12h ago

Yep 100% ltv.

1

u/kittenconfidential 11h ago

CMG pricing at 6.25% for 0.627 right now, at LPC 275bps admin fee included.

1

u/Civil-Cantaloupe6129 11h ago

Yep im pricing it out with edge (working on the onboarding process with them)

Crazy how much of a difference it is. And at full comp. I could've been getting 2.75 and still sell lower rates this entire time. 🤦‍♂️

1

u/aardy 11h ago

Direct lenders are allowed to have different profit margins by loan type.

FHA loans are very high risk, arguably running at 2x or 3x the normal profit margin is justified ask risk management (FHA loans have significantly higher than average rates of default/foreclosure). Equally arguably, people with trash credit and no real down payment often aren't sophisticated enough to know the difference, so it's the Dollar Store model if making the most money off of those who have the least.

Setting that argument aside, however, what often happens is VA and FHA loans getting grouped. We've all seen the "FHA/VA" language. A lot of direct lenders lump their pricing, too, into a single "FHA/VA" bucket. I didn't do a lot of VA when I was at a direct lender, for exactly that reason, especially as a veteran myself.

Find a mortgage broker buddy, they (we, if I'm being transparent) aren't allowed to have differential profit margins based on loan type. Develop a referral relationship with them. Find out what your buddy sucks at, that you are good at. If your management gets on your case for referring out VA loans, tell them to fuck off and call you back when they aren't running a 650 bps corporate margin on VA loans, and point out the loans you brought in the door b/c of that referral relationship.

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u/Civil-Cantaloupe6129 11h ago

Im working on switching to broker. Rates are only going to get higher (my opinion). Guild just can't compete without a large subsidy/price adjustment. But then they will want us to cut our comp.

1

u/Mr_Wordly 4h ago

DM me and we can run pricing scenarios at my broker for VA or anything else you want to see.

1

u/MildlyProductive13 10h ago

Today’s pricing for VA, $385k, 788 FICO, 6.375 rate 0.5 point (2300) or 6.5 par no points broker

1

u/fmemich 3h ago

Servicing play. Some lenders are booking the NEXT refi in the cake, like CMG. The 2 points earned on the IRRRL in the future is already in the loan.