Direct Jumbo Lenders - Who is the Best?

Portfolio Lenders are the best priced right now. some small regionals are good but they have product mix, they tend to fluctuate between different programs, they are constantly updating and changing rates, PL's are best priced

some big banks do have decent rates at times, its rapid ever changing market, have to constantly keep monitoring all lenders to ensure which is the lowest.

how does one get in contact w/portfolio lenders?

individuals can't, it is the relationship between banks and PL's, has to be banks not brokers because the bank closes in its name and then sells loan off to PL. Many small banks have the relationships in place. The good thing is not only is rate great, but underwriting is 2 to 3 days to close (if everything else is in place).

can you recommend other small banks for a 15 year fixed NON-jumbo mortgage? (excellent credit, manhattan coop)?

who are some examples of Portfoloio Lenders - specifics, please!

nycborn-what is the loan amount?

mark- it is a combination of private equity, some banks have warehouse lines and will take on the responsibility of closing and selling the loan off (they look to pool and or package the loan and sell it off), don't try to make sense of it, the bank takes the responsibility of closing and funding (they have capital up and use that line of credit).

So do ALL portfoloio lenders have to be done through a Mortgage Broker? Would Astoria Federal be considered a PL since they are holding the loan?

NO- Astoria is a regional bank,I do not believe mortgage brokers work with PL's since they can not close in their own name, they just broker the deal, Mortgage banks do work with PLs.

The loan would be for 400k.
Thanks.

Mortgage Brokers absolutley work with Portfolio Lenders. In fact those are the only banks getting my Jumbo business with the exception of one or two that PL's wont take because of credit scores.

The reason you are better off going to a broker then directly to a PL lender (if they even offer retail) is pricing. The PL will pay the broker to bring in the business and becasue of volume typically offer lower rates through the broker. Best of both worlds.

Markznyc/ I know you asked for no broker proposals but why would you not work with a broker who can get you a lower rate with 0 points??

nycborn - You dont need a small bank for a conforming loan. The bigger banks will probably be better. sunny_hong@countrywide.com

dledven- I'm a broker and have many "portfolio lenders" as you call them that I work with.

markznyc, that's exactly why you go to a mortgage broker, because contrary to popular demand some of us actually do provide a service to our clients; arranging loans with lenders that they may not have access to alone. Sure there is a fee but usually if the rate is low enough compared to the alternatives the client saves a lot of $ in the long run.

the reason I am wary of a broker is that I was "guaranteed" a 0pt. Jumbo at a great rate, with no fees and subsequently have been told it will now cost me a 1pt fee to the broker ... just feel like I am getting the ol bait and switch

I have a 800+ credit rating, will be putting 46% down and will be my primary residence...seems like I would be a prime candidate for an easy loan . . .

First of all, no loan is easy these days, even if you feel you are the ideal candidate there is always going to be some sort of issue. Second of all, that bait and switch is the biggest problem with this industry, you are just lucky the fee came up before you ended up at the closing table. Typical broker overpromising and under-delivering. Its important to get a referral, ask your attorney or RE broker who they recommend. Chances are they have a relationship with a mortgage broker who will be less likely to pull any BS with you since their reputation with the referral source will be on the line.

Almost every mortgage broker has access to these so called "portfolio lenders." Most of them are just small local banks. Brokers are middlemen for banks. If you have a deal where youre putting down 25%, excellent credit, great assets, and your Debt to Income ratio is exactly where the bank feels comfortable. Then probably a "portfolio lender" might be a good option. Otherwise, the broker is sending your loan to a regular bank. The key thing is that brokers have no control over commitments or underwriting. They fax or email application and documents out and wait for a response. They can promise a certain rate and program but isnt always 100% capable of delivering it because they are not the bank. Yes, some of the good brokers actually do provide a service and if they can deliver on a good deal then of course they should be rewarded. Just an opinion from someone whos been both broker and retail banker.

Mark, That is a fair answer and their is not too much I can say. What was the brokers reason for the point? Where you not provided with a GFE? The only valid reason someone would have to tell you there is a point involved is if you did not ask him to lock in and rates went up. Rates have been going up quickly. The PL's went from not changing their rates for weeks at a time to issuing daily rates sheets. And in my opinion any one who "guarantees" anything in the mortgage business doesnt know what they are doing. There are too many moving parts.

As I have done this several times before, I should have known better. Shame on me for not getting more info from hom before going down the road so far . . .

mortgageman787, you and I both know gfe's are worth as much as the paper they are printed on. There are instances where i do not receive compensation from the lender and get paid for my services directly from the client.

Markznyc, do you have an attorney or real estate broker? Ask them to give you a list of 2 or 3 brokers they have worked with in the past, trust me it will turn out better for you.

citi mortgage does jumbo conforming. the rate is very good.
Ridgewood savings bank, hudson city savings bank both have good rates in nyc area.

I am looking for a super jumbo 5 yr I/O loan. i have excellent credit and am putting 25% down. Need a loan of approx. 2mm. Any thoughts on the most competitive lenders for this type of financing. I'm not interested in loans with prepay penalities or any other gimmicks.

raj-if interested i can get you a 5-1 ARM I/O at 6.125% no points no fees on a $2M LOAN, however, i can also get you a HELOC Interest ONLY for LIFE, i know its not fixed for 5 years, however, it is at 5% which is below all other rates, even if rates increase in time,your still better off because you received a lower rate for the interim, and the HELOC is pegged to prime, if interested you can email me at dledven@customcapital.net or call me at 646-419-4192.

caffeine- Hudson city doesn't do 5 boroughs only suburbs and nassau and suffolk county. Ridgewood have restrictions and most likely will not be able to finance the loan. Also their rates and programs aren't competitive anymore as they were 3 months ago Citi's jumbo conforming rates are terrible compared to other lenders - if you are not on top of your game, please don't disseminate stale banking info.

markZ-unfortunately if you didn't lock the rate,it is a problem, since the rates have moved drastically in the last 2 weeks. having said that what rates are you being quoted what is the loan amount?

$1.075M 5.75 7/1 ARM 1 pt

w/ the pt going to the broker, not the bank

dledven,

Curious to know what rates (or combination thereof) you are looking at on a $664K purchase price (15% down - $564,400 mortgage 30-year fixed). Williamsburg, Brooklyn. Realize 15% down is not ideal in this environment and PMI will be in addition. Thanks.

markznyc, that's a pretty good rate. Is there an issue about shelling out the extra cash or are you just pissed because the broker slid it in there last minute? In my opinion, in this market, that rate for a 7/1 is worth the point.

jsey quick question what is your time horizon for the home? is it +7 years?

mark, searching now, i have one lender 7-1 ARM (I/O option) at 6% with no points, the good thing is the 6% rate has an I/O feature and no hit for the I/O option, will keep searching, you have to understand the market has had market swings this weeks,

i can get you 7-1 ARM (I/O option) 5.875% with (.40 points), 5.75% rate (.80) so better rate then quoted. 5.625 (1.125 points), same bank just listed the other options, waiting to hear back from other PL's.

Dledven,

I'm looking at a 5 to 7 year time horizon and then probably rent the place so I'm thinking the 30-year is the best option. Thanks in advance.

Let's mix things up a bit. Looking for rates for a second home in Manhattan, 5-1 ARM I/O or 7-1 ARM I/O, $!,450,000 with a minimum of 20% down. Credit score above 780. Any ideas best place to look for rates? Another one, investment property, $1,105,000, minimum 20% down, Manhattan, 5-1 or 7-1 I/O's.

the "broker" point was slid in at the last minute . . . that is why I am irked. Dledven, please let me know your contact info and I will reach out.

mark you can contact me at 646-419-4192 or dledven@customcapital.net

csn-same rates- not on investment property

I feel your pain Mark Z I just went to closing using a Broker and Ridgewood bank, at the closing I get a fee sheet faxed to us with fees that were to be waved and a 1 pt fee that was to be paid to the broker direct.I was told at the beginning of the process that we would discuss my options, and then never did. She said one bank WAMU would jump my rate to over 7 if I had them pay her rate.Of course there is no way for us to confirm this. I thought using a broker was to make the process go smoother boy was I wrong.It also seems like these people must be getting a good fee to sell HELOC loans cause twice she tried to get me into one of them of course with 2000.00 closing costs.The GFE is garbage also, cause she sent one to us all done but with the wrong % of finance. She applied for 75% and we only ever discussed 80%. Of course she was very happy to hook me up with a HELOC loan to cover the difference.This women's firm is about to be online with a new development in town,God help the buyers.I ended up with 6.12 on a 5/1 ARM on 1108000.00 which probably sucks for all I know,but she swore it was the best rate going.

ns-you didn't know a head of time? you are correct the GFE is just initial and can change, but you should have received the TIL and the commitment letter from bank which shows everything, i hate to hear stories like that, wish i could have assisted you.

Lession learned.I never saw a commitment letter,what is a TIL ?

Truth in Lending, the Commitment Letter is huge (you have to sign that? before closing), that Commitment letter states everything. i'm sure you signed it once the loan was approved (usually a week or two after submission of application.

Yes now that you say that I think we did,with being able to email and scan things you sometimes loose track.Thanks for the sympathy,we actually had to stop the closing and call her to get things straight on the fee sheet.The funniest thing was after I yelled about the fees and everything she had F'd up she had the balls to say well I hope you'll still recommend me in the future.I just laughed and hung up on her.

NS- Nothing can be done so dwell on the good, and congratulations on your new home!

Mark you didn't learn your lesson huh?

From listening to dledven he/she seems to be legit, but i told you, get a referral from somebody. You don't find a broker on an Internet message board! There is a reason why dledven has a lot of time to be posting on this site every 10 minutes, because business is slow and his lead source ran out. You need to do business with a mortgage broker that doesn't rely on message board postings or cold calling. 100% of my business is a result from incoming calls from my referral sources.

Nicely put mbrokerny. Ask your attorney for a referral.

mbroker- I am a NY Real Estate Lover- i don't just post about rates, I post about NY R/E, you just happen to read the mortgage posts. secondly, if you want to compare w-2's or bank statements or Real estate owned, i'm ready and willing. Lastly, i have seen several of your posts from some unknown place, so if business is slow for you it doesn't mean its slow for me, so please don't compare yourself with me, without knowing me. and i believe i left my contact info on the top, if you want to ring me direct.