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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (14943)	11/9/2003 4:10:43 PM
From: JBTFD	Read Replies (1) \| Respond to of 306849

Do you have a relatively low loan to value? It seems to me there is a reason for this that is more than the math of what the extra quarter point costs over the long run.

To: valueminded who wrote (14943)	11/10/2003 1:27:43 PM
From: ild	Read Replies (2) \| Respond to of 306849

<<<It is interesting that they would choose to do this >>> They pocketed the fat fee when they sold your loan. I heard of a lady who was a mortgage broker. She would refi her OWN house every three months each time earning $5,000. In the recent years there were lots of "serial refinancers". IMO FNM/FRE must be sitting on some huge losses because every time they paid the full fee counting that they would have the loan long enough to recover the fee, but the loan was refinanced. I'm amazed that they have not instituted some pre-payment penalty against "serial refinancers". But why would the management care about long term prospects of the company if they are able to cash their options before sh*t hit the fan?