Sweating Market Volatility? I don’t.

Confessions of a Former Retail Lender #3

“Rates improving after you lock stings. Still beats floating into a worse one.”

Saying that used to make my stomach churn, I lost sleep and just prayed that they didn’t pick up the phone and call another lender. The other lender could have been on the same margin, but just a few days could have been the difference in a .25% better rate, and I knew it.

As a lender, pricing volatility is the worst. You float, and it gets worse, or you lock and it improves. Either way you lose, that’s the retail trap. Broker is better.

Why?

I don’t float anymore. There is no need. The second I get a contract I lock it with one of my lenders– if pricing improves, I either renegotiate it with them or I move it.

Being fearful of market volatility isn’t a lending issue; it’s a retail issue.

— Blake | BridgePoint Mortgage Chandler | NMLS# 1365524