The mortgage market is shifting, and AIME’s Jonathon Haddad says it’s time for brokers to embrace a mindset of opportunity. With new tech and market trends, there’s a huge chance to grow and succeed!https://t.co/tplyUM1UDD
— Mortgage Professional America Magazine (@MPAMagazineUS) September 16, 2024
“Everybody that’s not a direct-to-consumer shop hates trigger leads. That’s why there’s legislation on the Hill right now to quickly eliminate those, so to protect our brokers and their clients from the credit triggers, we allow for a soft pull on streamline.”
An emphasis on education of the broker community has also come to the fore, not least around clarifying the differences and similarities between IRRRLs and streamline. “The two products are often lumped together,” Brenning said.
“People think of an IRRRL and a streamline as the same thing for FHA – and they’re not. There are wildly different guidelines and [on an IRRRL] you can actually build the loan amount up a little bit to cover closing costs, to rebuild your escrow – which you can’t do with an FHA streamline.”
When it comes to the refinance outlook for the months ahead, much will depend on whether rates continue their downward trajectory. The Federal Reserve is scheduled to meet today, with a rate cut a near-certainty – and the only debate seemingly surrounding the likely size of that reduction.
If the Fed embarks on a rate-cutting cycle, “I think we can make a solid argument that a month from now, two months from now, there’s going to be a really solid IRRRL, streamline market,” Brenning said.
Source: mpamag.com