Community Article Request: Rate Lock Strategy in the Current Mortgage Market

by bill rice on 27. Mar, 2009 in Mortgage Sales

Trend lines (technical analysis)
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It has been awhile since I directly originated, but I know how important getting your “rate lock” strategy right. It is important to you and your customer, but so many mortgage brokers and lenders don’t have any strategy. That is like playing the slots in Vegas with your money, as well as the client’s.

The biggest part of that strategy is understanding how the bond market and mortgage securities operate and what all those crazy trend lines and candlesticks mean. Do you understand all this?

If you get smarter with your locking strategy you will serve your clients better and boost your profitability.

Why do I know this is a great topic for the community? Here are five of my favorite people to monitor for mortgage rate watch, and they all have slightly different opinions on what you should be doing with rate locks:

Here is my request: Who is the smartest guy or gal on rate lock strategies? Can that person write a post/article on how to create a good rate lock strategy?

Email me: wmrice [at] gmail.com or DM me on Twitter: @billrice

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No Responses to “Community Article Request: Rate Lock Strategy in the Current Mortgage Market”

  1. The Mortgage Cicerone 28. Mar, 2009 at 8:42 am #

    Hey Bill,

    First, thank you for the mention! While I often don’t provide detailed market narrative, my loack recomendations are well researched as well as providing additional links to others opinion. As you are well aware, this is not a science, but experience and research can quite often be very helpful. BTW…great picks above and I’m humbled to be mentioned in the same breadth.

    Second – Very excited about seeing where you take Lenderama! Tood will be sorely missed and he did a fantastic job building the best mortgage blog. That being said, I find your insight and writing cutting edge, intelligent and eye-opening. You are definately one of the bright spots in our field!

  2. Bill Rice 28. Mar, 2009 at 5:33 pm #

    Tony,

    Thanks for the kind words. I am excited about digging in with originators and Realtors to discuss topics and strategies that will make the industry more successful.

    I think a lot of folks get this part of lending wrong. That is why I an expert from the community to instruct (in a post) other community members the fine art of getting rate locks right.

    -Bill

  3. Hawaii real estate 30. Mar, 2009 at 2:53 pm #

    When I was a loan broker in CA, I would just lock everybody with one of my big lenders and if rates dropped I would negotiate a float down or start their loan over with a new bank. Lenders don’t like it, but borrowers demand it. I would rather be the bad guy to the lender than to the borrower.

  4. Robert D. Ashby 31. Mar, 2009 at 6:17 am #

    Bill,

    Finally getting caught up on things since my laptop crashed last week. I wanted to thank you for the mention. Just like the MC above, I am humbled to be in the group above as the list comprises many of the best minds in the mortgage business.

  5. baba 01. Apr, 2009 at 12:10 am #

    i will try my best to create the good rate lock strategy and share that with you people.

  6. Ling 03. Apr, 2009 at 6:59 am #

    I dunno much about the others, but if Robert Ashby wants my vote, he’s got it. Whatever little I know about bonds and MBS is entirely due to Robert’s weekly posts here.

  7. MaryAnn Knell-Peoria Real Estate 10. Apr, 2009 at 3:05 pm #

    I would enjoy reading what Bill Rice has to say on it as well; he has quite a few gems of wisdom up his sleeves!

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