Guaranteed Rate

Apache is functioning normally

2008 & 2018 lenders: ghosts in the machine; warehouse, pre-approval, DPA, manufactured housing, marketing products

<meta name="smartbanner:author" content="We now have a native iPhone
and Android app.
Download the NEW APP”>


This website requires Javascrip to run properly.

2008 & 2018 lenders: ghosts in the machine; warehouse, pre-approval, DPA, manufactured housing, marketing products

By:
Rob Chrisman

Wed, Aug 2 2023, 8:26 AM

“If you have no interest in banking, you are not a loan.” (Best said out loud to a 6th grader.) Cutting edge humor aside, this morning I head to Orlando for the FAMP event, in a state where there are a total of 186 banks operating with 4162 branches. Some of the conversation will be about Freddie Mac earning $2.9 billion in the 2nd quarter (how’d your company do?). Banks… Last Friday we saw something we haven’t seen for a while: a bank closure. “Heartland Tri-State Bank of Elkhart, Kansas, was closed by the Kansas Office of the State Bank Commissioner, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver… the FDIC entered into a purchase and assumption agreement with Dream First Bank, National Association, of Syracuse, Kansas…” While we’re on Agency and government news, the Federal Reserve’s quarterly Senior Loan Officer Opinion Survey found that banks have tightened credit standards for both business and consumer clients, and they expect to tighten further through the rest of the year. “…a less favorable or more uncertain economic outlook, an expected deterioration in collateral values, and an expected deterioration in credit quality of [commercial real estate] and other loans.” (Today’s podcast can be found here and is sponsored by Candor. Candor’s patented automated underwriting decision engine, CogniTech, is a state-of-the-art, 100 percent machine platform that can handle infinite loan scenarios. Listen to an interview with Polunsky Beitel Green attorney Andy Duane on recent capital rules plans changes by U.S. bank regulators.)

Lender and broker software, products, and services

In 2022, Americans spent an average of $6,000 on engagement rings to demonstrate lifelong commitment to their partners. Just as the act of proposing with a ring symbolizes a promise, SimpleNexus, an nCino company, also seeks to engage prospective homebuyers with the promise of an intuitive, modern home financing experience. A single-sign mobile app gives borrowers the convenience of managing their mortgage loan from anywhere, with a rich feature set that allows them to submit an application, scan and upload documents, eSign disclosures, and attend virtual eClosings. What’s more, built-in messaging and notification features foster meaningful connections between lenders, borrowers, and their real estate agents. See how SimpleNexus can put your organization and your borrowers on the path to a future filled with security and prosperity. Schedule a demo today.

Click links, ask questions later. The most common attack vector for a cyberattack is the human element. It’s what phishing emails, phone calls and text messages all have in common. Yet while it’s the weakest link, the human element could be your organization’s greatest prevention layer if trained correctly. In an industry that incentivizes people based on sales goals, every mortgage lead has bottom line potential. And in the current market, it’s only human to go after leads without stopping to consider their legitimacy. But recent data shows just how risky clicking without thinking can be. According to ISACA, in 2022 social engineering (tricking humans) was the #1 attack vector, and even the best teams are vulnerable. Learn how to do a better job at testing and training your team to identify legitimate leads. Talk to Richey May’s cybersecurity experts for help assessing and defining your cybersecurity training needs.

“Attention Mortgage Technology Companies! Discover the secrets to thriving in this competitive market with our free white paper, tailored specifically for you. Written by Seroka Brand Development, the mortgage industry’s leading marketing and public relations company, this exclusive guide reveals top marketing and PR strategies for 2023. As the industry faces its current set of challenges, effective yet cost-conscious marketing is more crucial than ever for companies like yours, competing for every opportunity. Learn six impactful ways to reach your target market and secure success through the rest of 2023 and beyond. Don’t miss out on this invaluable resource: download your FREE white paper now.”

“AFR Wholesale® (AFR) is teaming up with financing experts from Fannie Mae for the next session of our Why Wait Live Webinar Series! Please join us Wednesday, August 9th at 2 PM EST, where we will be highlighting what you need to know about manufactured home financing. AFR has been a leading expert in manufactured homes for over 25 years. With this added knowledge and proven experience, we’ll be an extension of your team to help the prospects in your portfolio to become borrowers. Over this series, AFR has been discussing affordable financing solutions that together will help us provide homeownership opportunities to more families. Register Today! This is a live webinar, and a recording will not be provided. Sign up today and don’t miss it! If you are currently a partner of AFR, start utilizing these programs right away! Contact AFR by going to afrwholesale.com, email [email protected] or call 1-800-375-6071.”

“Why are some lenders and LOs thriving in this market? Because they know there are still 1st-time buyers and people seeking DPA! Stairs Financial aggregates DPA information and matches homebuyers, often CRA-eligible, to lenders/programs on our platform to help lenders create customers for life. Through Stairs, borrowers are educated about loan programs and terms to better understand their loan options before connecting with our lender network. Stairs is launching in Texas and quickly expanding nationwide with licenses in 40 states. We’re partnering with national, regional, and local lenders in every market to ensure every aspiring homeowner gets the help they need. By seamlessly connecting to your PPE, Stairs can show borrowers your rates, loan terms, and DPA program options. Further, we can deliver mortgage leads to your CRM or lead management system. If your firm wants to help more 1st-time buyers achieve their dream of homeownership, contact Mike Romano.”

“This seems too good to be true” is what we hear pretty often when it comes to QuickQual. Lucky for you, it is true. Loan officers issue QuickQuals right from within the LOS and give borrowers and Realtors the ability to run payments and update pre-approval letters within guardrails you set. Check out QuickQual by LenderLogix and they’ll text a demo right to your phone!


Warehouse/liquidity programs

If you’re heading to California for Western Secondary, carve out time to meet with the team from Flagstar Bank. At a time when banks are downsizing or leaving the warehouse business altogether, Flagstar remains firmly committed to the mortgage space. They’re the second largest warehouse lender with $119 billion in assets, offering the strength, stability, and best-in-class service you’ve been looking for. Flagstar warehouses most loan types, including conventional, non-QM, and construction, and offers MSR, servicer advance, and EBO financing solutions. Their warehouse platform is flexible enough for 400+ warehouse clients of all sizes to fund quickly and easily. While you’re at the conference, talk to Flagstar about their experienced Specialized Mortgage Banking Solutions team to find out if they can help streamline operations and provide greater value for cash balances. With 35 years of experience, Flagstar is a trusted lending partner ready to unlock a world of opportunities for your business. Contact Jeff Neufeld or Patti Robins today to discuss what Flagstar can do for you.

“If you’re attending the California MBA Western Secondary Market Conference in Dana Point, make sure to include Axos Bank’s Warehouse Lending Team in your agenda. Our team will be available to discuss strategies and showcase how our diverse array of Agency, Jumbo, and Non-QM products can provide you with the flexibility and liquidity needed to become a top producer in today’s market. With our expanded portfolio programs and extended cutoff times (6:15 p.m. ET), achieving success has never been easier. To secure a meeting time, simply reach out to Eric Nelepovitz and Justin Castillo via email, or if you have any questions, feel free to contact the Warehouse Lending team at 888-764-7080. Don’t miss out on this opportunity to elevate your business to the next level.”


The only thing constant is change

Independent mortgage banks and credit unions aren’t the only entities who originate residential loans. Banks have been in the news!

Grizzled industry vet Ken Sonner, showing his age, noted, “The ‘Banc of California buying PacWest’ deal is very interesting. A $10BB bank tries to swallow a $40BB bank? Kinda like GreenPoint buying Headlands.” Don’t forget that Norwest bought Wells Fargo but kept Wells’ name.

And then there’s this story: “Donald Trump’s business empire faced a potential crisis after he left the White House and his longtime accounting firm warned not to rely on his past financial statements. But Axos Bank, an online-only financial firm headquartered in San Diego, soon agreed to loan him $225 million, stabilizing his finances.”

In general, do you think anything is permanent in residential lending? How many of 2008’s top 20 are still in the game? Wells Fargo, Chase, Bank of America, Countrywide Financial, Citi, Residential Capital LLC, Wachovia, SunTrust Mortgage, US Bank Home Mortgage, PHH Mortgage, Washington Mutual, Taylor, Bean, & Whitaker, Flagstar Bank, AmTrust Bank, National City Mortgage, ING Bank, BB&T Mortgage, First Horizon Home Loans, Franklin American Mortgage Company, and IndyMac.

How about in 2018?

Wells Fargo, Chase, Quicken Loans, PennyMac Financial, United Wholesale Mortgage, Bank of America Home Loans, U.S. Bank Home Mortgage, Caliber Home Loans, Amerihome Mortgage, loanDepot.com, Flagstar Bank, Freedom Mortgage, Fairway Independent Mortgage Corp., Guaranteed Rate Inc., SunTrust Mortgage, Nationstar Mortgage, Citizens Bank, Guild Mortgage, Stearns Lending LLC, and Navy Federal Credit Union.

Recognize some ghosts?


Capital markets: rates, as always, up some, down some

Yesterday was yet another volatile day in rates and MBS as rates staged another breakout to higher yields after shrugging off month-end buying and some weak data. While volatility remains elevated it also remains range-bound, and sentiment is that the Fed is finally finished with its historically aggressive pace of tightening.

On the data front, we received a weaker than expected ISM Manufacturing survey (Institute for Supply Management) for July as the manufacturing economy continues to contract. New Orders improved, and pricing pressures continue to fall. Supply delivery times decreased. Overall, the news on pricing should be good for the Fed, as it looks like its tightening policy is having the desired effect. There was also a smaller than expected increase in June Construction Spending (actual 0.5 percent) after increasing an upwardly revised 1.0 percent in May. Residential spending continues to be powered by new single-family construction to meet demand that cannot be satisfied through the existing home market.

Ahead of Friday’s payrolls report, job openings were 9.6 million at the end of June, according to the JOLTS report. Hires decreased to 5.9 million, with losses experienced in finance and manufacturing. The “quits” rate, which tends to forecast wage inflation, decreased to 2.4 percent from 2.6 percent in June and 2.7 percent a year ago. The jobs market remains exceptionally tight but continues to show incremental signs of weakening. Job openings have fallen 20 percent since the Fed began tightening policy in March 2022, even with the unemployment rate trending sideways. Price growth still elevated and a pullback in demand for workers ongoing, a “soft landing” remains far from assured, but this is an encouraging step toward inflation subsiding without a recession.

Today’s economic calendar kicked off with mortgage applications decreasing 3.0 percent from one week earlier, according to data from MBA. We’ve also received ADP employment (324k, nearly twice as strong as expected! We’ll learn the U.S. Treasury details of the Quarterly Refunding (3-year notes, 10-year notes, and 30-year bonds) where we can expect amounts to increase from previous auctions in the face of a Fitch downgrade of U.S. debt. We begin the day with Agency MBS prices unchanged from Tuesday and the 10-year yielding 4.04 after closing yesterday at 4.05 percent; the 2-year is at 4.90, showing no impact of Fitch’s opinion of U.S. debt. Much ado about nothing?

Jobs and transitions

“FLCBank is looking for seasoned Wholesale Account Executives in the northeast, southeast, central, and northwest regions. If you are looking to make a move and join a company with a tenured culture of collaboration, team-based success, and the security of working for a federally chartered national bank, then it’s time to call Bob Eisendrath, Strategic National Account Manager (414.350.3986). FLCBank is an agency-approved lender, offering a suite of Jumbo products with IO, fixed, and ARM options, as well as bank portfolio products like bridge loans. Our AEs work with Brokers, Non-Delegated Correspondents and have the opportunity to offer warehouse lines to your customers. FLCB cultivates a fun team environment where both sales and the operations staff are passionate about delivering exceptional customer experience with every loan. We offer competitive compensation, an energized culture, and seasoned operations and support staff. FLCBank is an Equal Opportunity/Affirmative Action Employer.”

Do you have what it takes to be a mortgage superstar? Do you want to work with a lender that is leading the way in using AI to revolutionize the mortgage industry? If so, you need to check out Stockton Mortgage, a proud adopter of Lender Toolkit and its revolutionary solution, AI Underwriter™, which automates and applies underwriting conditions in 90 seconds or less. With just one click, you can review credit reports, income, assets, appraisals, loan data, fraud reports and more. Stockton Mortgage is using AI Underwriter to boost its productivity, quality, compliance, and find issues earlier in the process, delivering faster communication to Stockton’s customers. Stockton is looking for talented and ambitious professionals to join its team and grow with others on the team. If you’re ready to take your career to the next level and be part of the tech future of mortgage lending, visit Stockton’s website or contact the team today.

“Security National Mortgage Company (SNMC) has announced that Austin Jacks has joined the Company to serve as its Chief Marketing Officer. Mr. Jacks has over a decade of mortgage industry marketing experience focused on creating marketing products and building teams to enable loan originators to thrive. Mr. Jacks most recently served as the field marketing manager for Nations Lending. Joel Harward, SNMC’s SVP, stated, “Austin’s approach to modern marketing and his extensive experience will help us elevate awareness of the Company’s brand and expand its market share. His passion for marketing, strategic focus, and creativity will make him a great addition to the SNMC team. We are confident that Austin will play a key role in SNMC’s continued growth and success.” If you are interested to find out why Austin Jacks joined SNMC and why “It is Better Here”, please check us out here.”

How many ads for mortgages have you seen like this ad for mobile homes?

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

Another day, another affordable home loan program launches, this time “OneDown” from Guaranteed Rate.

As the name implies, you only need to put 1% down when purchasing a home, which is about as close to zero as it gets.

If you’re wondering why lenders are offering such mortgages, it comes down to affordability, or a lack thereof.

Home prices remain at or near all-time lows, despite some pullback a few months back.

And mortgage rates remain stubbornly high, with the 30-year fixed close to 7%.

Guaranteed Rate OneDown: Their 1% Down Home Purchase Loan

If you’re in the market to buy a home, despite those pesky high interest rates (and home prices), you might be feeling a little stretched.

To alleviate some of that burden, Guaranteed Rate has joined other lenders in launching a 1% down mortgage, which they call OneDown.

As you may or not know, Fannie Mae and Freddie Mac offer loans with just 3% down, such as HomeReady and Home Possible.

But apparently that is still too much for some buyers, so Guaranteed Rate is chipping in an additional two percent contribution towards that down payment.

They will provide 2% or up to $2,000 (whichever is lower), meaning you’ll probably get the full $2,000 in most cases unless you’re buying a sub-$100,000 home? I don’t think those exist anymore.

On top of that, OneDown also provides borrowers with a $1,000 contribution toward their lender fees, such as underwriting, processing, origination fee, etc.

So you can reduce your cash outlay at closing via a smaller down payment and fewer closing costs.

Who Qualifies for Guaranteed Rate OneDown?

If the program sounds interesting, let’s talk about qualifying.

Like many other homebuyer assistance programs, this is geared toward first-time home buyers.

That means you can’t currently own a home, and it must have been three years since you owned a home in the past.

And while no geographic restrictions apply, there are income limits. Your area median income (AMI) must be under 80%, which you can look up here.

Additionally, the loan must be for the purchase of a primary residence. No second homes or investment properties.

The property itself must be a single-family residence or condo/townhouse. It’s unclear if multi-unit properties are permitted.

You must also contribute a minimum of 1% down payment from your own funds, and you’ll likely need at least a 620 FICO score.

Lastly, at least one borrower (assuming there are multiple) must complete a homebuyer education course if all occupying borrowers are first time home buyers.

I believe the $3,000 ($2k down payment and $1k closing costs) comes via a grant and lender credit, meaning it doesn’t need to be paid back.

But always verify with the company itself before moving forward.

Tip: You may be able to combine this offer with a seller paid temporary buydown as well to lower your monthly payment too.

Is Guaranteed Rate OneDown a Good Deal?

While it’s nice to get some financial assistance, Guaranteed Rate isn’t alone here. There are several other lenders offering similar deals.

For example, Guild Mortgage 1% Down Payment Advantage is basically the same deal, but with up to $5,000 in down payment assistance. That’s up to $3,000 more than Guaranteed Rate.

The difference is they offer a 1% temporary buydown instead of the 1% lender credit toward closing costs.

Then there’s Rocket Mortgage ONE+, which comes with a 2% grant as well and mortgage insurance at no cost to the borrower.

Another possible winner is the new U.S. Bank Access Home Loan, which offers up to $12,500 in down payment assistance and a lender credit up to $5,000. But it has geographic restrictions.

You also find similar deals in your local city or state that provide a non-repayable grant. So be sure to check those options as well.

Ultimately, if you plan to use Guaranteed Rate anyway, this is a bonus $3,000 in value assuming you max it out.

And that could make the dream of homeownership a little bit easier, especially with mortgage rates and home prices so high at the moment.

Just always take the time to compare options, and consider the big picture, including mortgage rate, lender fees, and so on.

It might be possible to find a different lender that charges less, thereby saving you money a different way.

Source: thetruthaboutmortgage.com

full disclaimer and complete list of partners.

Table of Contents

Source: goodfinancialcents.com

Apache is functioning normally

Transamerica is considered to be one of the world’s leading insurance and financial services companies. The firm offers insurance and investments to more than 19 million customers worldwide.

As Transamerica’s slogan suggests, the company – and its customers – are “Tomorrow Makers.” This is because the company strives to make its customers’ tomorrows everything that they plan for.

Who is Transamerica?

Table of Contents

Transamerica is a financial services company that provides insurance, investment, and retirement products and services.

It was founded in 1904 and is headquartered in Baltimore, Maryland. Transamerica is a subsidiary of Aegon, a multinational life insurance, pensions, and asset management company based in The Hague, Netherlands.

The History of Transamerica

The company has been in the business of providing insurance and financial advice for more than 100 years and it began its operation in 1904 when Amadeo Giannini started the Bank of Italy in a converted saloon in San Francisco, California.

He strived to make financial services available to everyone of all financial classes, not just the wealthy. His business really ramped up following the 1906 San Francisco earthquake when he was able to provide loans to residents for rebuilding their properties.

Several years later, in 1928, the company merged with Bank of America, and two years after that, it acquired Occidental Life Insurance via Transamerica Corporation. In 1956, the banking and life insurance companies were separated, with the insurance component maintaining the Transamerica name. Today, customers of Transamerica have access to a wide variety of insurance and financial products and services.

The firm is licensed to provide insurance in all U.S. states, and the District of Columbia, and it has approximately $223 billion of premiums in force. Transamerica has a roughly $29.5 billion in assets under management.

Products Offered By Transamerica

Transamerica offers a variety of products to both consumers and businesses.

On the insurance side, the company provides numerous options, including the following types of coverage:

Term Life 

Term life insurance offers pure death benefit protection for a specific period of time.

This is typically 10 years, 15 years, 20 years, or 30 years. Should the insured pass away during the time that a term life policy is in force, the named beneficiary will receive the stated amount of death benefit.

Because term policies do not offer any type of cash value or savings component, the premiums for this type of coverage are typically more affordable than other, “permanent,” forms of coverage.

For example, you can get a $1 million term policy for less than 20% of a permanent policy with the same face value.  Term life is sometimes referred to as “temporary” life insurance coverage as it is often used for covering temporary needs such as the balance of a mortgage.

Whole Life

Whole life insurance offers death benefit protection as well as cash value build up.

The funds that are inside of the cash value grow on a tax-deferred basis, meaning that no tax is due until the time of withdrawal. The cash grows at a guaranteed rate over time.

Whole life is considered permanent coverage because as long as the premium is paid, coverage remains in force – oftentimes for the “whole” of a person’s life.

Universal Life

Universal offers a death benefit protection as well as a cash value build up. However, it provides more flexibility than whole life in that the policyholder can choose to pay higher or lower premium amounts as their financial needs change over time.

The policy value may simply increase or decrease accordingly. Like with whole policies, the cash value is allowed to grow on a tax-deferred basis.

Variable Universal Life

Variable life, provides death benefit protection and cash value.

With variable universal life, however, the cash value’s return is based on underlying investments in market-related “subaccounts.” These can allow the funds in the account to grow a great deal – provided that the market moves upward. These accounts can also be riskier in a downward moving market.

Accidental Death

This can help to ensure that their loved ones will be taken care of should the unthinkable occur. (It is important to note that this benefit will not typically pay out in the event of death that is caused by sickness or other natural causes).

Final Expense

Final expense coverage focuses on paying for a person’s funeral and related expenses.

Today, the cost of a funeral – including the burial plot, headstone, and other related expenses – can exceed $10,000. Unfortunately, many families are not able to pay these costs immediately upon the death of a loved one.

Having final expense insurance allows for a way to do that – eliminating stress on loved ones, in an already stressful and emotional time.

Key Man Life

What is key man life insurance you ask?

Key person insurance is a form of business insurance that people can overlook, but one that can make all the difference in keeping a business or firm successful in the face of losing an owner, or important team member.

In addition to life insurance, Transamerica also offers a number of other financial products, including long-term care insurance, annuities, and retirement/investment savings options for those who are planning for retirement, as well as those who are already there.

Financial Strength Ratings of Transamerica

Transamerica has been given very good ratings by the insurer rating agencies.

These ratings include the following:

A.M. Best Moody’s Investor Services Fitch Standard & Poor’s

A+ A1 AA- AA-

Is Transamerica a Legit Company?

Yes, Transamerica is a legitimate company. It is a subsidiary of Aegon, a multinational life insurance, pensions, and asset management company. Aegon is rated highly by financial rating agencies such as Standard & Poor’s, Moody’s, and Fitch Ratings.

Transamerica has been providing insurance, investment, and retirement products and services since 1904 and is regulated by state and federal government agencies.

Biggest Risks Choosing Transamerica for a Life Insurance Policy?

Choosing a life insurance policy, including one from Transamerica, comes with certain risks. Some of the biggest risks to consider include policy lapse, which occurs when you fail to pay the premium on time and could result in losing coverage.

Another risk is market risk, which refers to the performance of any investments within the policy, such as a cash value component, that can be subject to market fluctuations and result in losses.

Misrepresentation is another risk to consider, as providing incorrect information on your life insurance application could result in your policy being denied or not paying out as expected in the event of a claim.

Lastly, it’s important to make sure the life insurance policy you choose is appropriate for your needs and financial situation, as Transamerica offers a range of policies.

Advantages and Considerations

When seeking life insurance, it is important that the insurer is able to offer choice and flexibility – especially such that it meets with your specific needs. Many have the misconception that they cannot find a policy for them because of their lifestyle choices, such as one looking for life insurance for a smoker, there are options out there for you and I can help with finding the best for your needs.

Transamerica provides an extremely flexible and diverse product line up, including:

  • Term
  • Whole
  • Universal
  • Variable
  • Final Expense
  • Accidental Death

This, coupled with the company’s excellent customer support team can make for a nice mix – especially for customers who may need assistance in figuring out the details in terms of how much to purchase and what type of coverage may be best for their specific needs.

In addition, Transamerica’s policies also come with a nice assortment of riders – which can make their plans even more customizable. For example, the firm offers an estate protection rider that can help in protecting loved ones from estate tax obligations that may arise from the payment of the policy’s own death benefit.

The company’s website provides additional information on both policies and policy riders so that interested potential applicants can obtain more information on how these may work in their specific scenario.

Yet, even with all of the good, there are some considerations that should be taken into account when searching for coverage – especially when doing so through just one single insurer. This is especially the case if you have certain health issues, such as searching for best life insurance rates for smokers and/or you possess other factors that may deem you as being a higher risk applicant. This may lead you to need to look into a company that offers no medical exam life insurance policies.

In these cases – or in any case – it is always good to do some comparison shopping. Otherwise, you are essentially “locked in” to whatever price the insurer presents you with. This can be somewhat similar to only going to one car dealer or one computer dealer when shopping for these items, and never even checking prices elsewhere before moving forward with your ultimate purchase. With this in mind, regardless of how good the product, it always makes good sense to shop around first.

How and Where to Get the Best Life Insurance Coverage for Your Needs

<iframe title="Transamerica Life Insurance Review [3 Minute Breakdown]" width="500" height="281" class="ezlazyload" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen srcdoc="*padding:0;margin:0;overflow:hidden;html,bodyheight:100%;imgposition:absolute;width:100%;top:0;bottom:0;margin:auto;.play-icontop:50%; left:50%; position:absolute; height:100px; width:100px; margin-top:-50px; margin-left:-50px;.play-icon:hoverheight:125px; width:125px; margin-top:-62px; margin-left:-62px“>[embedded content]

When you’re in the process of searching for the best life insurance coverage – regardless of your current health condition or status – it is important that you compare the type of policies that are available to you, as well as the premium cost from different carriers.

This is because there could be a significant variation between one insurer and another – even for the very same type and amount of coverage.

.wp-review-26550.review-wrapperfont-family:josefin sans,sans-serif

Review of Transamerica Life Insurance Company

Summary

Transamerica is a financial services company that provides insurance, investment, and retirement products and services. It has a long history, having been established in 1904, and is a subsidiary of Aegon, a multinational life insurance, pensions, and asset management company.

One of the strengths of Transamerica is its broad range of products and services, which includes life insurance, annuities, mutual funds, and retirement plans. This allows customers to choose from a variety of options to meet their financial goals and needs. The company has a strong online presence, offering convenient access to account information and resources, as well as easy policy management and premium payment options.

  • Cost and Fees
  • Customer Service
  • User Experience
Overall

3.8

Pros

  • Wide range of life insurance products: Transamerica offers a variety of life insurance products, including term life, whole life, and universal life insurance, which allows customers to choose the policy that best suits their financial goals and needs.

  • Strong financial stability: Transamerica is a subsidiary of Aegon, a multinational life insurance, pensions, and asset management company, which has a strong financial position as indicated by its highly rated financial standing from credit rating agencies.

  • Convenient online services: Transamerica provides a convenient online platform for policy management, which includes access to account information, policy details, and premium payment options.

  • Professional support: Transamerica has a team of trained professionals who can help you understand the policy options and select the one that best suits your needs.

Cons

  • Potential policy lapse risk: If you fail to pay the premium on time, your life insurance policy may lapse, which can result in the loss of coverage and any accumulated cash value.

  • Market risk: Depending on the type of policy, there may be investment components within the policy that are subject to market risk, meaning that the policy’s value can decrease in value.

  • Complexity: Some of Transamerica’s life insurance products, such as universal life, can be complex and may require a higher level of understanding and management to ensure that you are making the most of your coverage.

  • Premium costs: The premium costs of Transamerica’s life insurance policies may be higher compared to other insurance companies, and it’s important to consider your budget when choosing a policy.

  •  

.wp-review-26550.review-wrapperbox-shadow:0 0 20px rgba(0,0,0,.1);width:98%;float:left;border:none;background:#fff;margin:0 1% 30px.wp-review-26550.review-wrapper .review-descclear:both;padding:25px 30px;line-height:26px.wp-review-26550.review-wrapper .review-desc .review-summary-titletext-transform:uppercase.wp-review-26550.review-wrapper,.wp-review-26550 .review-title,.wp-review-26550 .review-desc p,.wp-review-26550 .reviewed-item pcolor:#6a788a.wp-review-26550 .review-links abackground:#8cc739;padding:10px 20px 8px;box-shadow:0 0;border:none;color:#fff;border-radius:50px;cursor:pointer;transition:all .25s linear.wp-review-26550 .review-links a:hoverbackground:#1f3457;color:#fff;box-shadow:0 0.wp-review-26550 .review-list lipadding:20px 30px.wp-review-26550 .review-list li:last-childborder-bottom:0.wp-review-26550.wp-review-circle-type .review-list lipadding:19px 30px.wp-review-26550.wp-review-circle-type .review-list .review-circle .review-result-wrapperheight:32px.wp-review-26550.wp-review-circle-type .review-list .wp-review-user-rating .review-circle .review-result-wrapperheight:50px.wp-review-26550.wp-review-circle-type .wpr-user-features-rating .review-list lipadding:10px 30px.wp-review-26550.wp-review-point-type .review-list li,.wp-review-26550.wp-review-percentage-type .review-list lipadding:24px 30px.wp-review-26550.wp-review-point-type .review-list li>span,.wp-review-26550.wp-review-percentage-type .review-list li>spandisplay:inline-block;position:absolute;z-index:1;top:32px;left:45px;color:#fff;font-size:14px;line-height:1;text-shadow:0 1px 1px rgba(0,0,0,.3);-webkit-touch-callout:none;-webkit-user-select:none;-khtml-user-select:none;-moz-user-select:none;-ms-user-select:none;user-select:none.wp-review-26550.wp-review-point-type .wpr-user-features-rating .review-list li>span,.wp-review-26550.wp-review-percentage-type .wpr-user-features-rating .review-list li>spancolor:inherit;text-shadow:none.wp-review-26550.wp-review-point-type .wpr-user-features-rating .review-list li .wp-review-input-set+span,.wp-review-26550.wp-review-percentage-type .wpr-user-features-rating .review-list li .wp-review-input-set+span,.wp-review-26550.wp-review-point-type .wpr-user-features-rating .review-list li .wp-review-user-rating:hover+span,.wp-review-26550.wp-review-percentage-type .wpr-user-features-rating .review-list li .wp-review-user-rating:hover+spancolor:#fff.wp-review-26550 .review-list li:nth-child(even)background:#edf2f9.wp-review-26550 .review-linkspadding:30px 30px 20px.wp-review-26550.review-wrapper .review-result-wrapper ifont-size:18px#review.wp-review-26550.review-wrapper .review-pros-consclear:both;padding:0;border-top:1px solid #edf2f9#review.wp-review-26550.review-wrapper .review-pros-cons .review-pros,#review.wp-review-26550.review-wrapper .review-pros-cons .review-conswidth:100%;flex:none;padding:0#review.wp-review-26550.review-wrapper .review-pros-cons .review-prosbackground:#1f3457;padding:30px 30px 10px;color:#fff;box-sizing:border-box#review.wp-review-26550.review-wrapper .review-pros-cons .review-consbackground:#8cc739;padding:30px 30px 10px;color:#fff;box-sizing:border-box.wp-review-26550.review-wrapper .mb-5text-transform:uppercase.wp-review-26550.review-wrapper .mb-5+pline-height:26px.wp-review-26550 .user-review-areapadding:15px 30px;border-top:1px solid.wp-review-26550 .wp-review-user-rating .review-result-wrapper .review-resultletter-spacing:-2.35px.wp-review-26550.review-wrapper .review-titleletter-spacing:1px;font-weight:700;padding:15px 30px;background:0 0.wp-review-26550.review-wrapper .review-total-wrapperwidth:40%;margin:0;padding:35px 0;color:#fff;background:#fff;border-left:1px solid;text-align:center;float:right;clear:none;border-top:1px solid.wp-review-26550.review-wrapper .review-listclear:none;width:60%;float:left;border-top:1px solid.wp-review-26550.review-wrapper .wpr-user-features-rating,.wp-review-26550.review-wrapper .wpr-user-features-rating .review-listwidth:100%;clear:both;border-top:1px solid #edf2f9.wp-review-26550.review-wrapper.wp-review-circle-type .review-total-wrapperpadding:20px 0.wp-review-26550.review-wrapper.wp-review-circle-type .review-total-wrapper .review-circle.review-totalmargin:auto 0;padding-top:10px;width:auto;height:100%;clear:both.wp-review-26550.review-wrapper.wp-review-circle-type .user-review-areapadding:12px 30px.wp-review-26550.review-wrapper.wp-review-thumbs-type .review-listwidth:100%.wp-review-26550.review-wrapper .review-result-wrapperborder-radius:25px.wp-review-26550.review-wrapper .review-percentage .review-result-wrapper,.wp-review-26550.review-wrapper .review-percentage .review-result,.wp-review-26550.review-wrapper .review-point .review-result-wrapper,.wp-review-26550.review-wrapper .review-point .review-resultheight:26px;margin-bottom:0;background:#f1e3cd;border-radius:25px.wp-review-26550.review-wrapper li .review-point .review-resultbackground:#8cc739.wp-review-26550.review-wrapper li:nth-of-type(2n) .review-point .review-resultbackground:#1f3457.wp-review-26550 .review-total-wrapper .review-point.review-total,.wp-review-26550 .review-total-wrapper .review-percentage.review-totalwidth:70%;display:inline-block;margin:20px auto 0.wp-review-26550.review-wrapper .review-total-wrapper .review-total-boxfloat:left;text-align:center;padding:0;color:#6a788a;line-height:1.5.wp-review-26550.review-wrapper .review-total-wrapper .review-total-box h5margin-top:10px;color:inherit.wp-review-26550.review-wrapper.wp-review-point-type .review-total-wrapper .review-total-box,.wp-review-26550.review-wrapper.wp-review-percentage-type .review-total-wrapper .review-total-boxwidth:100%.wp-review-26550.review-wrapper .review-star.review-totalcolor:#fff;margin-top:10px.wp-review-26550.review-wrapper .user-review-titlepadding:15px 30px 10px;margin:0;color:inherit;background:#edf2f9;border-top:1px solid;border-bottom:1px solid.wp-review-26550.review-wrapper .user-total-wrapper .user-review-titledisplay:inline-block;color:#6a788a;text-transform:uppercase;letter-spacing:1px;padding:0;border:0;background:0 0;margin-top:3px#review.wp-review-26550.review-wrapper.wp-review-circle-type .user-total-wrapper h5.user-review-titlemargin-top:12px#review.wp-review-26550.review-wrapper.wp-review-circle-type .user-total-wrapper span.user-review-titlemargin-top:8px.wp-review-26550.review-wrapper .reviewed-itempadding:30px.wp-review-26550.review-wrapper.wp-review-circle-type .review-total-wrapper>.review-total-boxdisplay:block.wp-review-26550.review-wrapper.wp-review-circle-type .review-total-wrapper>.review-total-box>divdisplay:none#review.wp-review-26550.review-wrapper .user-review-area .review-percentage,#review.wp-review-26550.review-wrapper .user-review-area .review-pointwidth:20%;float:right;margin-bottom:5px.wp-review-26550 .review-embed-codepadding:10px 30px.wp-review-26550.review-wrapper,.wp-review-26550 .review-title,.wp-review-26550 .review-list li,.wp-review-26550 .review-list li:last-child,.wp-review-26550.review-wrapper .review-list,.wp-review-26550 .user-review-area,.wp-review-26550.review-wrapper .review-total-wrapper,.wp-review-26550 .reviewed-item,.wp-review-26550 .review-links,.wp-review-26550 .wpr-user-features-rating,.wp-review-26550.review-wrapper .user-review-titleborder-color:#edf2f9.wp-review-26550 .wpr-rating-accept-btnbackground:#8cc739;margin:10px 30px;width:-moz-calc(100% – 60px);width:-webkit-calc(100% – 60px);width:-o-calc(100% – 60px);width:calc(100% – 60px);border-radius:50px@media screen and (max-width:480px).wp-review-26550.review-wrapper .review-title,.wp-review-26550.review-wrapper .reviewed-item,.wp-review-26550.review-wrapper .review-list li,.wp-review-26550.review-wrapper .review-desc,.wp-review-26550.review-wrapper .user-review-area,.wp-review-26550.review-wrapper .review-embed-codepadding:15px.wp-review-26550.wp-review-circle-type .review-list lipadding:15px 15px 0.wp-review-26550.review-wrapper .review-pros-cons>div>divpadding:15px;padding-top:0.wp-review-26550.review-wrapper .ui-tabs-navpadding:0 15px.wp-review-26550.review-wrapper .review-linkspadding:15px 15px 5px.wp-review-26550.review-wrapper .review-list,.wp-review-26550.review-wrapper .review-total-wrapperwidth:100%.wp-review-26550.review-wrapper .review-total-wrapperpadding:10px 0.wp-review-26550.review-wrapper .review-total-wrapper .review-total-box h5margin-top:0.wp-review-26550.review-wrapper .review-total-wrapper .review-total-box divline-height:1

Source: goodfinancialcents.com

Apache is functioning normally

When purchasing life insurance, it is important to have choices. As there are many various needs, policy holders can be better served by being able to essentially “customize” their plans in order to keep up with changes in their lives.

One of the most flexible forms of permanent life insurance is universal life. This type of coverage provides guaranteed death benefit protection, along with a fixed rate of interest on the cash value component of the plan. Cash in the policy can grow on a tax-deferred basis, and because of this, it can grow substantially over time.

Yet, universal life, or UL, also provides so much more than what is offered with more “generic” forms of permanent coverage such as whole life insurance. For example, with a universal policy, if the policy holder’s needs happen to change, then he or she may actually alter the policy to better fit their then-current scenario.  This greatly differs from whole or term life policies which are “locked-in” once the policy is in place.

How Universal Life Insurance Works

Universal life is a form of permanent coverage. This type of policy offers the policy holder death benefit coverage, as well as a cash value component. Yet, while this may sound very similar to whole life insurance, universal policies differ in many ways – starting with the fact that these policies can offer much more flexibility.

Similar to other types of permanent life insurance, the cash that is inside of a universal life insurance plan is allowed to grow on a tax deferred basis. However, the policy holder is allowed to move the funds between the cash value component and the insurance component of the policy.

What this means is that the policy holder can in essence change – within certain stated guidelines – the amount of the policy’s death benefit amount. In addition, the policy holder can also change the amount and the due date of the premium as well.

There are also more underlying options that are available in terms of allowing a universal policy holder’s cash value to grow. For example, policy holders can typically choose from a variety of different investment vehicles from both the fixed income and the equity investment markets.

Types of Policies

In addition to regular universal life, there are other variations of the product. For example, there are variable universal life and indexed universal life. Variable universal life insurance is a type of permanent coverage that offers both a death benefit, as well as cash value build up. Just like regular universal life, the policy holder can – within certain guidelines – change both the timing and the amount of the premium.

Rather than growing at a set rate of interest, though, with variable universal life, the funds in the cash component are actually managed professionally (unlike variable life policies that are managed by the policyholder) in underlying “subaccounts” and can be in entities such as stocks, bonds, and mutual funds. This can allow the opportunity for additional growth. However, it can also present more risk if the market has a negative return.

Overall, variable universal life insurance can provide policy holders with a number of different subaccount options – which can also include fixed option choices that have a minimum rate of interest. These policies also offer flexible premiums, payment schedules, and death benefit options.

#ap14647-wwfont-family:Archivo,sans-serif#ap14647-wwpadding-top:20px;position:relative;text-align:center;font-size:12px#ap14647-ww #ap14647-ww-indicatortext-align:right;color:#4a4a4a#ap14647-ww #ap14647-ww-indicator-wrapperdisplay:inline-flex;align-items:center;justify-content:flex-end;margin-bottom:8px#ap14647-ww #ap14647-ww-indicator-wrapper:hover #ap14647-ww-textdisplay:block#ap14647-ww #ap14647-ww-indicator-wrapper:hover #ap14647-ww-labeldisplay:none#ap14647-ww #ap14647-ww-textmargin:auto 3px auto auto#ap14647-ww #ap14647-ww-labelmargin-left:4px;margin-right:3px#ap14647-ww #ap14647-ww-iconmargin:auto;display:inline-block;width:16px;height:16px;min-width:16px;min-height:16px;cursor:pointer#ap14647-ww #ap14647-ww-icon imgvertical-align:middle;width:16px;height:16px;min-width:16px;min-height:16px#ap14647-ww #ap14647-ww-text-bottommargin:5px#ap14647-ww #ap14647-ww-textdisplay:none#ap14647-ww #ap14647-ww-icon imgtext-indent:-9999px;color:transparent

Ads by Money. We may be compensated if you click this ad.Ad

The indexed universal policy option allows policy holders the ability to own permanent life insurance protection, along with a cash value component that provides them with not just a guaranteed interest rate, but also with interest that is based partially on one or more market indexes such as the S&P 500.

With this type of policy, the policy holder may incur a cap that limits the maximum amount of growth that they can attain in a given period of time. However, in return for that, they are also provided with a minimum “floor.” This means that they are also protected against market losses – essentially guaranteeing them that they cannot lose any of their principal.

In many ways, indexed universal life insurance works in a similar fashion as most other types of coverage in that the policy holder pays their premium, and the net premium is then applied to the actual life insurance death benefit.

A portion of the premium is also credited to the policy’s “index” account, which is credited at the index growth rate. Over time, the cash in the policy’s cash portion can grow significantly – especially as the funds are protected against any downside market losses. Over time, the cash can grow substantially – and can be accessed via withdrawals or policy loans.

There are numerous benefits of owning an indexed universal policy. These can include having permanent death benefit coverage, provided that premiums are paid within the grace period and that the policy remains in-force.

As with most other universal life insurance policies, these plans also provide the flexibility to either increase or decrease the policy’s premium, within certain limits. In addition, the policy also offers the ability to increase the cash value portion, yet with downside protection. This can be viewed as a true win-win.

Considerations When Purchasing

When purchasing a universal policy, it is important to keep several factors in mind. First, there should be a good mix of different investment options to choose from for the policy’s cash component. This will help to both increase growth opportunity and to diversify.

It is also a good idea to check for policy guarantees. Most universal life insurance policies will provide at least some form of a guarantee regarding its investment options, as well as the minimum amount of premium that it will take to keep the policy in force. Likewise, it is important to ensure that the universal policy is flexible and can be adjusted in the future.

How Much Will a Policy Cost?

When determining the quote on a universal life policy, there are a variety of factors that are considered by the insurance company. This is because the insurer wants to determine whether it is taking on an appropriate amount of risk, and that it will not have to pay out a large amount of claim soon after it accepts an applicant for coverage.

Some of the key factors that life insurance carriers consider when reviewing an applicant for coverage include the following:

  • Age
  • Gender
  • Height and weight (primarily, weight as it pertains to the individual’s height)
  • Smoking status
  • Alcohol consumption
  • Marital status
  • Employment and income status
  • Overall health condition
  • Family health history
  • Hobbies (whether or not risky or dangerous hobbies such as sky diving or scuba diving take place)

In addition, policies that are “traditionally” underwritten, will typically require the applicant to take a medical exam, though if needed, we can find those carriers that will offer a policy for life insurance with no medical exam. This will entail meeting with a paramedical professional who will take a blood and urine sample. These samples will be tested for certain types of health ailments that could also pose certain risks to the company in terms of having to pay out a potential insurance claim.

Depending on the applicant’s overall health after all of the information has been reviewed, the insurance underwriters will be able to obtain a much clearer picture of the person’s risk status. At that time, a coverage determination can be made, as well as a premium price can also be determined.

If the individual is considered to be of “average” health – and will also likely have an “average” life expectancy given his or her health – then they will typically be rated as a Standard policy.

If, however, the individual has a slight health issue – but not enough to be declined altogether for coverage – then they will typically be rated as a Substandard. This means that they will still be offered coverage. However, that coverage will be provided at a higher premium rate.

Conversely, if the individual is in excellent physical and mental health, then it could turn out that the insurance company rates him or her as a Preferred. In this case, they will be able to obtain their policy at a lower than average premium rate.

For applicants who are declined for coverage due to health issues, there are other options for coverage. These can include going the route of a no medical exam policy or a guarantee issue policy. In these cases, an applicant will not be required to go through the medical examination in order to obtain a policy. While the premium for this type of coverage is typically much higher than for comparable coverage that is traditionally underwritten, it could be the only option in some instances.

How and Where to Get the Best Quotes

For those who want death benefit protection, along with additional benefits, universal life insurance should certainly be a consideration. These policies offer many advantages, such as:

  • Death benefit coverage – UL policies provide lifetime death benefit protection – provided that premium payments are made within the policy’s grace period.
  • Tax-deferred growth – The cash within the policy’s cash value component is allowed to grow on a tax-deferred basis. This can allow funds to increase exponentially, as tax will not be due until the time of withdrawal.
  • Interest rate guarantee – The cash in the policy’s cash value component is also provided with a guaranteed rate of interest. This means that the growth is guaranteed not to fall below a set level.
  • Flexibility – Because UL policy holders are allowed to change the amount and timing of their premium payment, these policies come with a great deal of flexibility to grow and alter as one’s coverage needs change over time.

When searching for the best universal life insurance quotes, it is important to ensure that you obtain several different options. This will allow you to compare the policy features – as well as the premium quotes – from a number of insurers, and then to decide on which option will provide you with the best scenario for you and your specific needs.

In doing so, it is typically best to work with an agency or company that has access to more than just one insurance company. When you’re ready to begin your search for universal quotes, we can help. We work with many of the top universal carriers in the market place today – and we can provide you with all of the important information and details that you need that can help you with your purchase decision. We can do so directly via your computer – and without the need to meet in person with an agent. When you’re ready to begin the process, just fill out and submit the form on this page.

. Our experts are happy to assist you with answering questions or concerns, or walking you step by step through the universal quote process.

We understand that the purchase of life insurance can be a big decision. That is why we want to ensure that you have all of the pertinent information that you need in order to make the right decision. We will assist you in the following ways:

  • Choosing the right type of coverage – whether it be term, whole life, or universal protection;
  • Determining the proper amount of death benefit
  • Finding the company that will offer you the benefit – and the premium quote – that will suit your needs, and your budget.

Source: goodfinancialcents.com

Apache is functioning normally

A Utah-based national home lender will shell out over $1.2 million to settle a class-action lawsuit involving a ransomware attack and compromise of personal employee data.

Without admitting to any liability for the infraction, Citywide Home Loans agreed to the settlement in order to resolve the claims, which came after a November 2020 data breach. In the incident, an unauthorized outside individual gained access to the company’s computer network and deployed ransomware, encrypting certain systems that contained the personal identifiable information of Citywide employees.

Included in the compromised data were Social Security numbers, passport and driver’s license information and banking and credit card details. Citywide notified affected employees of the incident between February and April 2021. 

Marjorie Curtis, who served as the plaintiff for the class consisting of approximately 3,300 current and former staff members, filed the original lawsuit in October 2021, alleging negligence, breach of contract and invasion of privacy on the part of Citywide Home Loans.

The lender, which has headquarters in Sandy, Utah, did not respond to a request for comment from National Mortgage News prior to publication. Founded in 1998, Citywide is licensed in 35 states and employs more than 800 people. Stearns Lending entered into a shared-equity partnership deal with Citywide in 2018 before it was acquired by Guaranteed Rate in 2021. 

Under the terms of the settlement, individuals who were notified their data was compromised can claim up to $5,000 for economic losses incurred as a result of the cyberattack. Another $200 is available for lost time related to the incident. Citywide also agreed to provide two years worth of credit monitoring and identity-theft protection services from Kroll Associates. 

In order to receive benefits from the agreement, impacted parties must submit claim forms by Aug. 8. A final approval for the settlement is scheduled on Aug. 25.

The cyber incident at Citywide is one of several to have hit mortgage lenders and servicers in the past few years. Earlier in 2023, a noted hacker threatened to publish customer data he claimed to have obtained through cyberattacks on Academy Mortgage after that lender refused to pay any ransom. 

Also this year, Alvaria, a third-party technology vendor contracted by Carrington Mortgage Services became a victim of a ransomware attack that impacted over 50,000 people, with data including names, addresses, loan information and partial Social Security numbers compromised. It was the second attack on Alvaria in the space of a few months, following a late-2022 event. Cybersecurity experts have previously warned of the security threats sometimes coming through outside vendors.

The Federal Bureau of Investigation advises companies to avoid paying ransom following a cyberattack. Payment offers no guarantee data will be returned and could incentivize cyber criminals.  

Source: nationalmortgagenews.com

Apache is functioning normally

Rithm Capital, the Michael Nierenberg-headed real estate investment trust, appears to be getting into direct lending. The REIT bought $1.4 billion worth of unsecured personal loans from Goldman Sachs‘ Marcus business unit, Bloomberg reported Thursday.

Rithm bought the loans at a discount, Nierenberg told the outlet. The portfolio of loans Rithm purchased were to borrowers with an average FICO score of 735 and Nierenberg said he’s assuming losses between 8% and 10%.

“They’re pretty healthy borrowers who were just consolidating debt,” said Nierenberg. “It’s an opportunistic acquisition; we don’t see pools like this come across very often.”

Nierenberg told Bloomberg that Rithm is also looking to move into the direct lending space as banks face tightening regulations from Basel III.

“If the regional banks continue to pull back, it could be an opportunity,” he said.

Rithm, the REIT that operates mortgage lenders and servicers NewRez, Caliber and several other businesses, said in May that it was considering spinning off the mortgage division to aid its flagging stock, which company executives described as “extremely undervalued.”

Meanwhile, Goldman Sachs has had to eat hundreds of millions of dollars on its consumer unit Marcus. A week ago the bank sold $1 billion of personal loans to alternative investment firm Varde Partners. Goldman also sold a $1 billion tranche in the first quarter, the investment bank disclosed in regulatory filings.

If it does get into direct consumer lending, Rithm will find some familiar faces in the independent mortgage bank world. Guaranteed Rate last year announced that it would be offering unsecured personal loans to qualifying customers at competitive rates.

Source: housingwire.com

Apache is functioning normally

If you haven’t heard of “Guaranteed Rate,” there’s a good chance you’ve never applied for a home loan before. Or maybe you just don’t live in the Midwest, where they’re headquartered.

Despite being from Chicago, they offer home loans to borrowers in all 50 states and Washington D.C., so they can be included in your mortgage search if and when it comes time to apply.

Their goal is to become the top retail mortgage lender in the country, which while ambitious, isn’t necessarily out of reach given their tremendous growth in such a short period of time.

The Relatively Short History of Guaranteed Rate

  • The retail mortgage lender was founded in the year 2000
  • Its headquarters are in Chicago, Illinois
  • They have roughly 4,000 employees and nearly 350 offices nationwide
  • One of the top-10 largest retail mortgage lenders in the country
  • Funded nearly $50 billion in home loans during 2020

While they’re a pretty big name in the mortgage world, they only got started back in the year 2000. That means they’re less than 20 years old, which is pretty short stint for a such a successful lender.

In 2020, they originated more than $48.8 billion in home loans, which should put them in or close to the top 10 in terms of total volume for all mortgage lenders.

Part of their growth can be attributed to acquisitions, including Manhattan Mortgage in 2012, and Sun State Home Loans, Nationwide Direct, Arbor Mortgage, and Firstrust Mortgage in 2014.

They also took over a call center and roughly 75 loan officers from Discover Home Loans after it went belly up in 2015.

Most recently, they acquired Stearns Lending, which funded roughly $7.6 billion in home loans themselves in 2019.

The move is a serious attempt to become the country’s #1 mortgage lender, though competition is certainly fierce as you near the top.

You might also recall that the company hired Ty Pennington of Extreme Makeover fame a while back to market the company.

A recent joint venture with Realogy’s real estate brokerage company NRT known as “Guaranteed Rate Affinity” has made them a major player in the home purchase financing market as well.

The lender also created another partnership with @properties known as “Proper Rate,” which will extend home loans to home buyers in select regions in the country, namely those represented by @properties’ 2,800 real estate agents.

And their latest JV is known as “OriginPoint,” an independent mortgage lender created with real estate brokerage Compass.

Guaranteed Rate boasts a very high customer satisfaction rating of 95% whom said they were “satisfied.”

Additionally, 94% said the company “made it easy for them to obtain a loan,” and 95% said they’d use the company again in the future.

This is similar to PrimeLending, which also touts one of the highest customer satisfaction ratings in the country for mortgage lending.

Getting a Mortgage with Guaranteed Rate

  • They have a fleet of mortgage loan officers you can search by name
  • And a few hundred branches in cities throughout the country
  • You can also apply online or via their smartphone app without assistance
  • And the home loan process is close to or fully digital in some cases

The company is a consumer-direct retail mortgage lender with what they call an “Intuitive Loan Finder.”

In my experience, it’s basically a lead form that gives you loan options after you answer the typical borrower and property-related questions.

They have since renamed it “GRafforable” in what appears to be an effort to show off their silly side.

They say the GRaffordable loan finder tool is the best mortgage calculator out there, which allows borrowers to gain access to real-time mortgage rates in seconds.

I gave it a whirl and it did indeed take just seconds to generate loan options including a “best match” based on my inputs.

The only drawback was that it didn’t list interest rates for all products displayed.

The good news is you don’t have to provide any contact information to get a bunch of real mortgage quotes in just seconds.

If you like what you see, you can apply for a loan or connect with a loan officer.

The company says it created a “Mortgage Pod” model that surrounds their LOs with a team of “highly-trained specialists” to ensure you’re in good hands.

They also have a “Loan Expert” search feature on their website if you know who you want to work with already.

Or you can simply contact a local branch near you if you want assistance from someone in your area.

Those who prefer to do things without much human interaction can just begin the process online and stay there the entire time if desired.

The company claims to have the “World’s First Digital Mortgage” with proprietary tools like their Transfersafe secure document transfer to streamline the process and eliminate paper waste.

They also say you can get an automated approval from Fannie Mae or Freddie Mac within minutes, likely a mortgage pre-approval, and you can apply for a mortgage using their mobile app.

Their “Red Arrow Approval Express” brings back same-day underwriting with “real approvals” generated in as little as four hours that are probably more robust than their automated pre-approvals.

And their “Appraisal Express” option delivers a home value within 48 hours of the appraiser’s visit to your property to cut down the lengthy loan process.

So it’s clear they’re big on technology and speed, similar to other major players like Quicken’s Rocket Mortgage and newcomers like SoFi.

Guaranteed Rate FlashClose

In light of the coronavirus pandemic, Guaranteed Rate wants you to know that they’ve got a contact-free digital mortgage experience from start to finish.

This includes options that limit or completely eliminate the time an appraiser needs to spend in your home or soon-to-be home.

The finishing piece is known as “FlashClose,” a technology powered by Notarize that allows borrowers to sign most of their closing documents either online or even from their smartphone or tablet.

This may also alleviate some of the stress of signing a bunch of loan documents in one sitting while a notary waits, giving you more time to review and ask questions.

Aside from allowing you to safely social distance, you also get an efficient, simple and secure experience from application to closing.

What Loan Options Does Guaranteed Rate Offer?

  • Home purchase, refinance, construction, and renovation loans
  • Conventional, government, jumbo, and non-QM loans
  • Fixed-rate mortgages and ARMs with various loan terms
  • Interest-only mortgages
  • Rate buydowns and long lock periods

They have a variety of different loan products available, including home purchase loans, construction loans, renovation loans, rate and term refinances, and cash out refis.

You can get a conventional loan backed by Fannie or Freddie, or a government loan backed by the FHA, USDA, or VA.

They participate in HUD’s Good Neighbor Next Door program, which allows law enforcement, teachers, firefighters, and EMTs to get mortgages with as little as $100 down payment.

Speaking of low down payments, they also offer a 1% down mortgage program, which combines the 97% LTV program with Fannie/Freddie and a 2% grant.

In the home improvement channel, you can get an FHA 203k loan or a Fannie Mae HomeStyle renovation loan to renovate and finance your property in one convenient loan.

Additionally, they have both conforming and jumbo loan amounts available to their customers in more expensive regions of the country, along with both fixed-rate loans and ARMs.

In terms of available programs, you can get a 30-year fixed, 20-year fixed, or 15-year fixed.

In the adjustable-rate category, they’ve got a 5/1 ARM, 7/1 ARM, and 10/1 ARM. They’ve also got interest-only options for those who believe their money is better spent elsewhere.

The Guaranteed Rate 2-1 Buydown

Guaranteed Rate also offers a 2-1 buydown, which offers a rate 2% below the note rate in year one, and 1% below the note rate in year two before returning to the actual rate offered.

For example, if you qualified for a rate of 5% on a 30-year fixed, you’d get a rate of 3% the first year, 4% the second year, and 5% for the remaining term.

When it comes to locking in your rate, they offer a “Lock n’ Roll” option that allows you to renegotiate your rate if interest rates go down.

Lock terms are also pretty lengthy, with 55-, 70-, and 85-day options available.

For those doing construction, they offer the “Lock n’ Build” option with lock periods as long as nine months, or 270 days.

I don’t believe they offer second mortgages or home equity loans/lines, which would be the only major product category missing here.

Guaranteed Rate Mortgage Rates

  • You can find their daily mortgage rates right on their homepage
  • They don’t appear to be noticeably higher/lower than most other major lenders
  • Check the loan assumptions to see what’s required for the advertised rates
  • And take the time to shop around if price is your number one concern

One thing I like about Guaranteed Rate is the fact that they advertise their mortgage interest rates right on their homepage.

This means there’s no guessing as to where they stand pricing wise. Of course, advertised rates always contain lots of assumptions, such as a specific credit score, loan-to-value ratio, and so on.

For example, their rates require a 25% down payment, as opposed to the typical 20% you often see advertised, a 740+ FICO score, and the property must be a one-unit primary residence.

In other words, you may not actually qualify for the rate seen on their website, though it should at least give you an idea if you compare their advertised rates to those of other lenders.

I felt their rates were in line with what other major lenders advertise – not necessarily cheaper or more expensive.

Guaranteed Rate Reviews

They have a 4.96 star rating out of 5 on Zillow, which is as close to perfect as you can get.

It’s based on more than 10,000 customer reviews, so the company has certainly been heavily vetted by those who have used them.

A good chunk of the reviews indicated that both the interest rate and closing costs were lower than expected, a good sign if you’re looking for the best deal.

You’d think with a name like Guaranteed Rate that the mortgage rate would be good, right?

At last glance, their Better Business Bureau (BBB) profile was rated ‘A’, with about 40 customer complaints over the past 12 months.

They are an accredited business with the BBB since 2009.

Those looking to dig even deeper should consider searching for individual loan officer reviews online.

Many if not all of their employees have reviews that can be easily found, and with such a large company, it may be a better indicator than overall ratings.

Why Choose Guaranteed Rate for Your Mortgage Needs?

  • They claim to offer the World’s First Digital Mortgage
  • And offer a lot of tools to close your loan quickly and easily thanks to tech investments
  • They’ve won a lot of best lender awards
  • Have high levels of customer satisfaction that beat most others in the industry

They claim to be a technology leader in the mortgage space with the “World’s First Digital Mortgage,” so if speed and convenience is your thing, they might be a good choice.

The same-day underwriting and 48-hour appraisal turnaround time can certainly make a traditionally slow and painful home loan process a lot faster.

They’ve also been able to cut the closing appointment down to around 10 minutes thanks to electronic signing.

And being able to do most, if not everything, from a computer or smartphone should ease the burden of obtaining a mortgage.

There are plenty of loan options to suit most borrowers’ needs, and their customer satisfaction numbers are some of the best in the industry.

They were recently named in the Best Mortgage Lenders of 2018 list by U.S. News and World Report and received the 2018 FinTech Breakthrough Award for the Best Online Mortgage Lender.

They could be a good choice for a home purchase seeing that they’re partnered up with Realogy and likely trusted by lots of real estate agents nationwide to close your loan on time without any hiccups.

The company also offers insurance, including homeowners insurance, auto insurance, and life insurance via one of their subsidiaries. So they might be a one-stop shop for all your homeownership needs.

Guaranteed Rate is also committed to being transparent and promise low rates and fees, which after all, is kind of in their company name.

Of course, they might not offer the lowest mortgage rates around, so shopping is always recommended.

Guaranteed Rate Pros

  • Appear to have competitive mortgage rates
  • Offer a fully-digital mortgage experience (contact-free)
  • Can apply online, in-branch, via smartphone, etc.
  • Lots of different loan programs to choose from
  • Excellent reviews from past customers
  • ‘A’ BBB rating, accredited business
  • They have a free smartphone app
  • Offer entire mortgage experience in Spanish

Guaranteed Rate Cons

  • They charge a $1,290 lender fee
  • May require higher minimum credit scores than other lenders
  • Don’t appear to offer second mortgages or home equity lines of credit (HELOCs)
  • Will likely transfer your mortgage to a third-party loan servicing company

Source: thetruthaboutmortgage.com

Apache is functioning normally

Efficiency, Fulfillment, Correspondent Products; Offices Into Housing; Capital Markets

<meta name="smartbanner:author" content="We now have a native iPhone
and Android app.
Download the NEW APP”>


This website requires Javascrip to run properly.

Efficiency, Fulfillment, Correspondent Products; Offices Into Housing; Capital Markets

By:
Rob Chrisman

Mon, Jul 17 2023, 10:25 AM

I am often asked about the jumbo segment of our business. Frankly, aside from the coasts and a couple cities in-between, much of the nation is not overly concerned with it. Paying $1 million or more for a house may seem excessive to most Americans, although that doesn’t mean million-dollar homes aren’t prevalent in some parts of the U.S. Per LendingTree, only an average of 6.68 percent of owner-occupied homes in the nation’s 50 largest metros in 2021 were valued at $1 million or more. The share of million-dollar homes has grown: That’s up from an average of just 4.71 percent of owner-occupied homes in the nation’s 50 largest metros in 2020. San Jose (66.3 percent) and San Francisco, CA (52.9 percent) have the largest share of million-dollar homes, the only two cities where most homes are worth at least $1 million. Including San Jose and San Francisco, the four metros with the highest percentage of million-dollar homes are in California. Only four metros (Buffalo, NY, Cleveland, Pittsburgh and Louisville, KY) have fewer than 1.00 percent of owner-occupied homes valued at $1 million or more. (Today’s podcast can be found here and this week’s is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services to the mortgage industry for almost four decades. To experience how Richey May can help you transform your mortgage business, visit richeymay.com. Hear an interview with Richey May’s Nathan Lee on outsourcing considerations and changing fixed costs into variable costs.)

Lender and Broker Software, Services, and Products

“Citi Correspondent Lending remains dedicated to serving diverse markets as well as continued responsible, sustainable growth. With a growing product suite that includes our new HomeRun program (no MI, up to 97% LTV and as little as 1% borrower down payment contribution required), a robust set of CRA pricing incentives and a quality-focused pre-purchase loan review process, Citi is well positioned to help you grow your business. Complete our Prospective Correspondent Questionnaire or request an appointment to talk with a Citi Account Executive at the Western Secondary Conference next month. We would welcome the opportunity to chat with you about all that Citi Correspondent Lending has to offer.”

If you’re looking for ways to squeeze every dollar out of each loan transaction, check out Computershare Loan Services (CLS). You can turn your fixed costs into variable expenses by outsourcing your processing, underwriting, and closing to CLS’ originations fulfillment team. They maintain top-tier POS, LOS technology, and a robust compliance program that keep you one step ahead. CLS’ money-saving solutions continue! Membership in their mortgage cooperative gives you exclusive access to negotiated pricing on commonly used mortgage services like VOI, flood determination, and trailing doc solutions. They do the hard work, uncovering best-in-class services that positively impact lenders. You’re one call away from savings that could dramatically improve your bottom line. Contact Computershare Loan Services today.

Blend has always put borrowers at the forefront of their mortgage products. KeyBank, a regional bank that’s been around for nearly 200 years, knows that customers are the backbone of their business too. And with modern mortgage expectations, they needed a modern mortgage solution. Learn how KeyBank’s partnership with Blend improved their NPS scores, operational efficiency, and LO adoption in this case study.

Sleep in Your Office? What About the Vacant Homes Conspiracy?

Before “van life” people would occasionally sleep in their offices. But what about making the office into a place to sleep?

There’s an anomaly facing major cities in the U.S.: many office buildings are empty while housing is in short supply. There has been a lot of talk of simply converting large offices into more apartments, but it’s much more difficult than it seems. Conversions are possible, but real estate developers face a variety of physical, regulatory, and financial constraints. Zoning restrictions and regulations restrict alterations and limit the scope for office-to-residential conversions. Structural complexity and code requirements mean that not all buildings are conducive for repurposing (e.g., ceiling height, access to lighting, plumbing considerations, etc.), and many structures have to be reinforced with more steel. Repurposing is often an expensive process that comes on top of initial acquisition costs, and ultimately will not save or make any money.

High costs require high rents to offset, meaning that most office conversions tend to cater to the luxury segment of the market and won’t help to alleviate a shortage of affordable housing in the city. Finally, as the status of remote work remains in flux, there’s a big question mark over the desirability of these conversion projects in the first place.

While we’re talking about inventory solutions, Chris Maloney with BOKF had some recent thoughts on people who look at the level of vacant single-family homes “that are, to them, evidence of a nefarious plot by speculators to hold supply off the market, drive prices higher and then sell at an even greater profit.” “There are a number of problems with this viewpoint, the most evident being that the total of vacant houses in these United States is currently far below its historic average.

“Except that of the 145 million or so housing units in the country, only about 15.1 million (or 10.4 percent of total housing stock) are vacant, which if it were proportionate to what the average has been this millennium (12.7 percent of total housing stock) would mean we’d have about 3.3 million more vacant homes than we currently see. The supply of vacant homes, like everything else in the housing market, is scarce. And of the 15 million housing units that are vacant, the Census Bureau number crunchers estimate only about 3.6 million fall into the ‘other’ category where speculators reside, and of that 3.6 million only about 227,000 fall into a sub-category (such as “preparing to rent/sell”) which points to the unit being readied for a near-term sale.

“Bottom line, it does not appear (at the national level) that speculators holding homes off the market, waiting for a better selling point, are the cause of the housing crisis. Of course, an institutional investor can concentrate its fiscal firepower onto specific areas, but even if they do the question here comes down to private property. If someone buys a home and wishes to take the risk of holding it off the market until they decide it’s the right time to sell, that is their right as it is their house, not society’s.” Thank you, Chris.

Capital Markets

Where to start with last week? Upbeat quarterly earnings reports on Friday from three of the largest U.S. banks capped a week in which almost everything rallied in markets. JPMorgan Chase, Citigroup, and Wells Fargo all reported above-consensus results to kick off the Q2 earnings season. However, the main economic headline over the last week was the continued deceleration in inflation, as core CPI was below 5 percent for the first time since November 2021. Consumer prices rose 0.2 percent in June and core CPI increased 4.8 percent from one year ago as durable and nondurable goods saw price declines. U.S. inflation is down from its peak of 8.9 percent, and suddenly “disinflation” is the buzzword on trading desks.

While the lower inflation numbers were welcomed by the markets, the Fed is still expected to increase the federal funds target following its next meeting on July 26. The committee is likely to feel validated that tighter monetary policy is slowing inflation while economic growth has not turned negative. Housing costs may continue to be a headwind in the Fed’s fight to get back to 2 percent inflation as higher interest rates not only reduced demand as intended but have also severely limited supply which has buoyed home prices. For those thinking that the Fed is done hiking rates, Fed Governor Waller said on Friday that he expects two more rate hikes this year.

This week kicks off with a limited calendar that consists of just NY Fed manufacturing for July. Data and supply pick up over the remainder of the week and include June retail sales, June industrial production/capacity utilization, May business inventories, and July homebuilder sentiment tomorrow, June housing starts and permits on Wednesday, and July Philly Fed manufacturing, June existing home sales, June leading indicators, and $17 billion in new 10-year TIPS on Thursday. After the 10-year U.S. Treasury yield dropped 23 basis points over the course of last week to 3.82 percent, in the early going to start the week, Agency MBS prices are better about .125 versus Friday, the 10-year is yielding 3.78,
and the 2-year is 4.72.

Employment

Black Knight is hiring an MSR Account Manager in its Optimal Blue division. This person will be responsible for helping clients with strategies related to mortgage servicing rights valuation and hedging, whole loan valuations, and more through the employment of industry-leading, proprietary analytics. This position is available in Chevy Chase, Md., Denver, Colo., and San Francisco, Calif. For more details on this role, contact Betsy Meek. In addition, Black Knight is always looking for talent across many roles. Visit BlackKnightInc.com/Careers for a full listing of all open positions.

Recently named by Euromoney.com as the Best U.S. Super Regional Bank in 2023, Citizens is garnering attention for its clear vision, strong leadership and disciplined execution. With the recent strategic acquisitions of HSBC branches and Investors Bancorp., making it geographically complete, Citizens is looking for talented salespeople (managers, loan officers, account representatives) in all three mortgage lines of business – Retail, Wholesale and Correspondent businesses throughout the Northeast, MidAtlantic, Midwest and Florida. Our deep product mix allows us to help many different loan needs, from affordable loan programs such as HomeReady to a best-in-class one-time close construction to permanent product, Citizens has what you need to succeed. Our specialty loan programs such as condo/co-op financing, rate protection programs with extended rate locks, along with an amazing Private Wealth discount value proposition for high net worth banking clients, ensures you have all the tools to win in this challenging market. To learn more, contact Sean Reilly or visit here.

Nations Lending continues growth, expanded opportunities for producers! Nations Lending is continuing its growth with multiple in-house product offerings, creating a world of opportunities for its origination team nationwide. The company’s dedication to servicing almost all its agency business and its licensure in all 50 states highlights its commitment to building the businesses of its loan officers. This proves true with the expansion of its recent product offerings: RIO and ACE. RIO is the company’s DSCR product (underwritten in-house), which eliminates proof of employment or income verification, services LLCs, and caters to short-term rentals. With ACE, borrowers complete their loan application and receive financing approval before initiating the homebuying process, varying largely from traditional pre-approval methods. Corey Caster, EVP of National Production says, “We know the headwinds originators are faced with today and our goal is to give them as much ammunition as possible. Every day our Leadership Team is focused on how we can improve our platform.”

“At Guaranteed Rate Affinity we believe our loan officers need the perfect combination of technology and human touch to succeed in this market. Not only are we a fintech organization but we focus on memorable experiences to drive loan officers’ personal branding. We have a dedicated events team to support our loan officers in the creation of these experiences that will leave a lasting impact. Build your business by leveraging the power of events to make connections and partnerships organically and stay top of mind in your community. Your Events Coordinator will take care of everything from start to finish, all you have to do is host your referral partners and clients. Learn more about what sets us apart. Contact Tim McGraw to get started.”

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com