Purchase loans

Apache is functioning normally

Rising home prices have pushed the third quarter’s tappable home equity amount near its 2022 peak, but interest rates are making homeowners reluctant to extract that wealth.

Mortgage holders withdrew a mere 0.41% of tappable equity in Q3, about 55% below the average withdrawal rate seen in the 12 years leading up to the Federal Reserve’s most recent tightening cycle, according to the latest ICE Mortgage Technology‘s mortgage monitor report. 

“Indeed, in recent quarters, equity withdrawal rates have been running at less than half their long-run averages. That’s equivalent to $54 billion – $250 billion over the last 18 months – in ‘missing’ withdrawals that might have otherwise stimulated the broader economy,” said Andy Walden, vice president of enterprise research at ICE Mortgage Technology. 

Rising equity levels are also contributing to low default and foreclosure activity.

Foreclosures starts rose to 33,000 in October – the highest level in 18 months – but still remained 35% below COVID-19 pandemic norms. Loans in active foreclosure inched up to 217,000, but remained more than 25% below pre-pandemic levels. 

About 70% of loans currently three or more payments past due are protected from foreclosure by ongoing loss mitigation efforts. In addition, about 58% of these seriously delinquent mortgage holders hold more than 20% equity stakes in their homes.

“Strong equity cushions not only provide borrowers incentive to work with their servicers to return to making mortgage payments, they also open up other options, such as salvaging earned equity with a traditional home sale rather than going through foreclosure. The more the industry can do to educate, and update, borrowers as to their equity positions, the better,” Walden said.

Mortgage originations

Purchase lending dominated the market overall, driving 86% of all first-lien lending in the third quarter. In 2024, roughly 75% of originations expected to come from purchase loans.

Despite compressed volumes, cash-out refinance loans fueled what is left of the refinance market accounting for 92% of the third quarter activity. Borrowers withdrew a record $104,000 on average.

Rising mortgage rates continued to put pressure on homebuyers, with the average debt-to-income (DTI) ratio on purchase loans hitting 40.5% in October, a series high dating back to January 2018.

The average DTI among conventional mortgages reached 37.8% in October, also a series high, while the average among FHA and VA loans hit 45.5% and 44.4%, respectively. These figures are both up sharply from recent months, but slightly below last year’s high of 45.7% for FHA loans and 44.5% for VA loans. 

Lenders have responded by tightening credit requirements and the average credit score among conventional, FHA and VA loans.

Average credit scores for FHA loans rose 14 points in October over the past 12 months while VA loans climbed 13 points. 

Source: housingwire.com

Apache is functioning normally

Today we’ll take a hard look at “HomeAmerican Mortgage,” yet another home builder affiliated mortgage lender.

They offer home purchase financing to Richmond American Homes customers, which is a top-10 home builder nationally.

Because they are operated by the same parent company, they can offer a streamlined process and home buying experience.

And perhaps more importantly, extend special financing offers like big mortgage rate buydowns.

Read on to see if you should use their in-house lender or look elsewhere for a better deal.

HomeAmerican Mortgage Fast Facts

  • The affiliated mortgage lender of Richmond American Homes
  • Offers home purchase financing on newly-built homes
  • Founded in 1983, headquartered in Denver, Colorado
  • Licensed to do business in 16 states and Washington D.C.
  • Funded $2.75B in home loans last year
  • Most active in Arizona, California, and Colorado
  • Also operate a title/escrow company and insurance agency

HomeAmerican Mortgage is a full-service, direct lender based out of Denver, Colorado.

They got their start way back in 1983 and are a subsidiary of MDC Holdings, Inc., which is a publicly-traded company (NYSE: MDC).

MDC also owns Richmond American Homes, which builds single-family residences in more than a dozen states throughout the country.

Simply put, HomeAmerican Mortgage exists to serve these home buyers, offering purchase loans only (no refinances).

This is similar to Lennar Mortgage and DHI Mortgage, which exist to serve Lennar and D.R. Horton home buyers, respectively.

They are currently licensed to do business in 16 states and D.C., including Alabama, Arizona, California, Colorado, Florida, Idaho, Maryland, Nevada, New Mexico, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Washington.

These are also the states where their new home communities are located.

At last glance, they have about 50 sponsored mortgage loan officers working at the company, per the NMLS.

And like many other builder-affiliated lenders, they also operate related subsidiaries to control the entire home buying process.

This includes a title and escrow company, American Home Title and Escrow Co., along with an insurance agency, American Home Insurance Agency, Inc.

Last year, HomeAmerican Mortgage funded about $2.75 billion in home loans, per HMDA data.

They are most active in their home state of Colorado and in California, with the two states accounting for nearly half of total loan production.

The company also does a lot of lending in Arizona, Florida, and Nevada.

How to Apply

To get started, you can visit a new home sales office at one of their communities or simply head to their website and click on “Apply.”

Before you apply, you may want to discuss pricing and loan options with a licensed loan officer.

Their digital mortgage application is powered by fintech company Blend. It allows you to complete the app from any device, whether it’s a computer, tablet, or smartphone.

And you can link financial accounts to save time, upload necessary documents, and eSign disclosures.

Once your loan is submitted, you’ll be asked to provide supporting documentation to generate a commitment letter, which may be subject to final underwriting approval.

You’ll be able to check loan status 24/7 and get in touch with your loan team if and when you have questions.

It’s also possible to generate a mortgage pre-approval letter via their online application, though if buying a new home via their parent company this may not be necessary.

Loan Programs Offered by HomeAmerican Mortgage

  • Home purchase loans
  • Conforming loans backed by Fannie/Freddie
  • FHA loans
  • VA loans
  • Homebuyer assistance
  • Fixed-rate and adjustable-rate options

As noted, HomeAmerican Mortgage is a purchase-only mortgage lender. So they’re entirely focused on getting home buyers into new homes.

There are no mortgage refinances offered, but they have a wide array of available loan programs to suit different preferences and needs.

You can get a conforming loan backed by Fannie Mae and Freddie Mac, or a jumbo loan if purchasing a more expensive property.

In addition, they offer both FHA loans and VA loans, though USDA loans appear to be absent from their lending menu.

Of course, their new homes may not be located in rural areas anyway, so this is moot.

They also mention the availability of bond loans and rural housing loans, which sounds like homebuyer assistance via state, city, and municipal housing agencies.

They offer both fixed-rate and adjustable-rate loans, including a 5/1 ARM on FHA loans, and a 7/6 ARM for conventional loans.

HomeAmerican Mortgage Rates

While they don’t list their daily mortgage rates online, they do say they offer competitive rates
This is apparently because they don’t rely on brokers or a middleman.

Of course, the real reason they might be able to beat the competition is because home builders often offer huge incentives if you use their affiliated lender.

The Richmond Homes website typically features special financing offers if you get under contract and close your loan by a certain date.

At last glance, I saw rates as low as 4.875% on select adjustable-rate mortgages, and 5.75% for 30-year fixed rates.

These deals are often hard to beat because the builder can offer a large amount of closing cost assistance that can be toward a permanent interest rate buydown.

However, be sure to pay attention to all lender fees and the mortgage APR, which takes into account all (or most) of the loan costs.

And put in the time to gather other quotes from third-party lenders and independent mortgage brokers as well.

Aside from potentially finding a better deal, having other quotes can help you negotiate more effectively.

HomeAmerican Mortgage Reviews

While they appear to have the latest technology, a good selection of loan programs, and low mortgage rates, their reviews are a little less convincing.

They’ve got a poor 1.4/5-star rating from about 120 Google reviews, which obviously is questionable.

A similarly low score of 1.5/5 can be found at Yelp, though it’s from a smaller sample size of about 30 reviews.

Ultimately, they don’t have a ton of reviews online. So take the time to read through them to see what the issues were.

But they do hold an ‘A+’ rating with the Better Business Bureau (BBB) and have been an accredited business since 2009.

And there are only seven customer complaints over the past three years on the BBB website, with just one in the last 12 months.

To summarize, HomeAmerican Mortgage could be a good option if you’re buying a Richmond American Home because they offer below-market mortgage rates.

But it sounds like the service can sometimes experience some hiccups. Still, if you can stomach it, the savings might be worth it.

Just be sure to gather outside mortgage rate quotes as well to see what else is out there, and to give yourself leverage when negotiating.

HomeAmerican Mortgage Pros and Cons

The Good Stuff

  • Digital mortgage application powered by Blend
  • Can apply for a home loan online via their website
  • Special mortgage rate deals for Richmond American Homes customers
  • A+ BBB rating and few customer complaints
  • Mortgage checklist and glossary on their website
  • Affiliated title/escrow/insurance companies for one-stop shopping

The Perhaps Not

  • Do not list rates and fees online
  • Aren’t licensed in all states
  • Only offer home purchase loans
  • Poor customer reviews

Source: thetruthaboutmortgage.com

Apache is functioning normally

Apache is functioning normally

MSR Sales, Subservicing, Margin Mgt., PPE, HELOC, Pre-Approval Tools, Don’t Ignore HMDA Requirements

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MSR Sales, Subservicing, Margin Mgt., PPE, HELOC, Pre-Approval Tools, Don’t Ignore HMDA Requirements

By:
Rob Chrisman

5 Hours, 0 Min ago

Home schooling is the goodest thing I ever did for my two kids. Hopefully, they both learned that an inverted yield curve doesn’t automatically create, or lead to, a recession. As we approach 2024, short term rates have been higher than long term rates since 2022, and when you think of the last 10 recessions eight of the last 10 were preceded by an inverted yield curve. But now the “experts” are saying that this yield curve inversion is due to artificial reasons, namely the U.S. Federal Reserve’s actions that shifted rates, rather than more natural factors. Time will tell, and no one can eliminate business cycles, so we may have a recession (and with it, lower rates) at some point. But for now, “The U.S. economy is becoming increasingly recession resistant. State, local, and federal government spending as a percentage of GDP has risen from 29 percent in 1962 to 35 percent today. Healthcare spending has risen from 5 percent of GDP in 1962 to 18 percent in 2021. Collectively they have risen from 34 percent of GDP to 53 percent and most critically, both sectors are not particularly interest-rate sensitive.” So spoketh Dr. Elliot Eisenberg. (Today’s podcast can be found here, and this week’s is sponsored by MCT. MCT’s technology and know-how continues to revolutionize how mortgage assets are priced, locked, protected, valued, and exchanged, offering clients the tools to thrive under any market condition. Hear an interview with Lender Price’s Dustin McClelland on how lenders can upgrade or enhance their pricing technology.)

Lender and Broker Products, Programs, and Services

Revolution Mortgage estimates that they can save up to $20,000 in cost on verifications with TRUV over competitors. Femi Ayi, EVP Operations shares how he estimates he is saving 80 percent on his verification costs with Truv in this recorded event. “Let’s talk about our documentation costs and those giant monopolies that are out there and laughing at customers and increasing prices because they have a particular monopoly. You want to lower your manufacturing costs.” Contact TRUV today for your income, employment, insurance, and asset verifications.

When a borrower or Realtor needs an updated pre-approval letter to submit an offer, how quickly can your loan officers turn it around? This quick?

Cutting-edge technology, lower rates, exceptional service… these are many of the claims made by today’s HELOC providers. It’s important to thoroughly research these companies before partnering with them. Check with insiders and peers to learn about their experiences. A company with a solid reputation is worth its weight in gold. Symmetry Lending is a HELOC company you can trust and rely on, offering… SUCCESS: Symmetry’s proprietary technologies and dedicated fulfillment teams deliver industry-leading turn times and streamlined documentation processes. Built on three main principles: service, speed, and simplicity, Symmetry presents a foundation of long-term success for their business and clients. STABILITY: Symmetry began in 2018 with an exclusive focus on HELOCs. Their experienced leadership team has a combined 150 years of industry experience. VALUE: With on-demand staff, service, and resources, Symmetry is committed to creating exceptional, consistent experiences from submission to close. Follow Symmetry on Facebook and LinkedIn to learn more about what differentiates them.

LoanPASS PPE and Uplist have announced a strategic partnership that integrates Uplist’s suite of smart, real-time home shopping tools directly into LoanPASS’s powerful product and pricing engine. This will allow loan officers to provide Uplist’s SmartBuyer™ Tool directly to perspective buyers from their LoanPASS interface. Loan officers will also have remote access to their rates through Uplist Quick Quotes, featuring real-time pricing, which includes detailed calculations for the popular 2-1 buydown. This fusion of technology will enable loan officers to easily deliver real-time, personalized solutions direct to their homebuyers and agents with the click of a button. Lenders and loan officers interested in leveraging this patent-pending technology can learn more by scheduling a no-pressure call with Uplist.

So, you’ve been dying to uncover the mystical wonders of Performance Marketing, right? Look no further! TrustEngine just dropped its Performance Marketing eBook in the digital realm. Hold onto your seats, folks, because TrustEngine is hyping up Performance Marketing like it’s the reigning rockstar of the century. This isn’t your average eBook; oh no, it’s the clandestine weapon of epicness, crafted to illuminate our fabulous community. Learn the differences between traditional and performance marketing; the Mortgage Performance Marketing Platform and crafting a performance marketing strategy in 7 steps. Click here to download the FREE eBook today.

With mortgage volume struggling to recover, now is the perfect time for lenders to focus on their profitability with MCT’s exclusive whitepaper: “Margin Management Best Practices.” Dive deep into the intricate world of margin management, where success in the dynamic mortgage industry is defined. MCT’s Capital Markets Technology Advisor, Cody Echols, unravels the complexities, challenges, and actionable techniques to boost profit margins and navigate lending volumes with agility. Discover the strategic compass for effective margin management: analyze market share dynamics, understand volume trends, and fortify profitability against volatility. Don’t just survive; thrive in the ever-transforming mortgage landscape! Ready to adapt and conquer? Download the MCT Whitepaper and elevate your margin management game.

“As year-end quickly approaches, lenders are hopeful that the recent rate rally continues, which is a great thing if you are originating loans. But what about lenders with servicing portfolios? As we consider a possible change in Fed cycle and liquidity needs, Lenders still have time to execute a trade on their portfolio by year end. Blue Water (“Blue Water Financial Technologies Services, LLC”) can assist lenders to sell bulk MSR, regardless of size. With BlueRATE™, a lender can obtain an instant portfolio valuation and then determine what to sell – whether it be a small geo carve or the entire MSR portfolio. Blue Water can also assist in moving your product quickly with Blue Water’s proprietary SuperTransfer™. With SuperTransfer™, transferring the portfolio to a buyer is easier than ever. Connect with our expert Sales Team to learn more.”

Earlier this year, Zillow Home Loans selected PHH Mortgage to provide subservicing for its residential mortgage portfolio. Following a collaborative onboarding and integration cycle, Zillow Home Loans and PHH completed an initial transfer of loans in August. PHH has worked with Zillow Home Loans to purchase loans on a correspondent and co-issue basis since 2019 and 2021, respectively. As of September 30, 2023, PHH Mortgage’s total servicing portfolio was approximately $296 billion, which included approximately $167 billion of subservicing. Earlier this year, PHH was recognized for servicing excellence for the third consecutive year through Freddie Mac’s Servicer Honors and Rewards Program (SHARP)SM in the top-tier servicing group and for the second consecutive year through Fannie Mae’s Servicer Total Achievement and Rewards (STAR)TM performer recognition. The Company also achieved HUD’s Tier 1 servicer ranking. No other servicer in the U.S. has been more highly decorated with these top awards from all three agencies over the past two years.

Compliance and Supervising LO’s

Our biz is still talking about the November 28 CFPB consent order fining Bank of America $12 million for failing to collect and report race and ethnicity information under HMDA. The CFPB alleges that the bank’s loan officers failed to ask applicants for their race and ethnicity information, and instead recorded that the applicant chose not to provide the information, which the bank reported.

Here is a US Consumer Financial Protection Bureau’s enforcement action. The CFPB ordered Bank of America to pay a $12 million penalty for submitting false mortgage lending information to the federal government under a long-standing federal law. For at least four years, hundreds of Bank of America loan officers failed to ask mortgage applicants certain demographic questions as required under federal law, and then falsely reported that the applicants had chosen not to respond. Under the CFPB’s order, Bank of America must pay $12 million into the CFPB’s victims relief fund.

Hundreds of Bank of America loan officers reported that 100 percent of mortgage applicants chose not to provide their demographic data over at least a three-month period. In fact, these loan officers were not asking applicants for demographic data, but instead were falsely recording that the applicants chose not to provide the information. Why? Because that is easier! It is sloppy, though: If you continually report that 100 percent of your applicants decline to answer, eventually someone will notice.

The issue didn’t spring up overnight. In 2013, BofA made attempts to train and monitor for this issue after noting that its rate of applicants not providing this HMDA information was high. The consent order alleges that in 2016, the bank’s monthly monitoring still showed that several offices and loan officers had information-not-provided rates three to four times the bank’s average, but the bank discontinued its monitoring.

In addition, the consent order alleges that in 2020, the bank found that over 400 loan officers recorded that applicants chose not to provide their race and ethnicity information on 100 percent of applications over a three-month period. The consent order also alleges that the loan officers were not asking applicants for their race, ethnicity, or sex, and instead were “wrongly recording on applications that the applicants chose not to provide the information.”

Capital Markets

Bonds once again climbed yesterday, the third consecutive day of gains, on bets the Fed will be able to start cutting rates in the first half of 2024, though Fed officials have signaled that cuts aren’t coming so soon. The Federal Reserve’s Beige Book for November noted that economic activity slowed since the October report, as four Districts reported modest growth, two reported little change, while six reported declining activity. Discretionary retail sales decreased as consumers showed more sensitivity to prices. Travel remained healthy while demand for transportation services was sluggish. The outlook among manufacturers weakened while demand for business loans dipped. Consumer credit was healthy, but some banks saw rising delinquencies. Demand for labor slowed while price increases moderated but remained at a generally elevated level.

We also learned yesterday that Gross Domestic Product rose at the fastest pace in almost two years (+5.2 percent) while consumer spending advanced at a less-robust rate. The Fed’s preferred inflation metric, PCE, was also revised down to 2.3 percent, signaling rate hikes are working. Put it all together and it paints the picture that the U.S. economy was effectively booming in the third quarter despite higher interest rates, aided by a strong labor market and disinflation that fueled healthy consumer spending activity. The volatility index (VIX) or so-called “fear gauge,” dropped to its lowest since January 2020.

Personal income and spending (both +.2 percent, as expected) and weekly jobless claims (218k, as expected; 1.9 million continuing) led off today’s calendar. PCE was +.2 percent, core flat. After Richmond Fed President Barkin argued yesterday the Fed should keep hikes on the table, which was in contrast with Cleveland President Mester signaling support for standing pat next month and Atlanta President Bostic signaling he is increasingly convinced that prices and the economy will moderate, later today brings remarks from New York Fed President Williams. Markets will also receive Chicago PMI for November, pending home sales for October, and Freddie Mac’s latest Primary Mortgage Market Survey. We begin the last day of November with Agency MBS prices worse a few 32nds, the 10-year yielding 4.29 after closing yesterday at 4.27 percent, and the 2-year at 4.65 percent after a bunch of news that came in as expected.

Employment

“If you are looking for a lifeline to save your people and your business in this challenging rate environment, you have an opportunity to partner with a well-capitalized independent mortgage company with over 40 years of experience. We offer a portfolio product line that gives our origination team the opportunity to quote unique scenarios for DPA, 2nd liens, ARMs, non-owner, Jumbo, Doctor/Professional, and more. Our proprietary coaching program is free to all Loan Officers. Even in this market, we’ve doubled-down on the support we provide, from a dollar-for-dollar marketing match to in-house creative & design services, video marketing, social media, training, and credit services. With unmatched operations support at the branch and corporate levels, your clients and referral partners will be more than impressed. Our company is Fannie and Freddie seller/servicer, FHA, VA, and USDA approved. For a confidential conversation, please contact Anjelica Nixt and mention this opportunity.”

PrimeLending’s Forward Commitment program opens doors to new opportunities for our LOs, offering homebuilders a quick way to move existing inventory without compromising value. By entering a short-term agreement with PrimeLending, builders can secure a block of funds at a significantly lower interest rate, enabling them to pass these promotional rates to potential homebuyers and convert more sales. The success speaks for itself! A builder in the Carolinas turned a $3 million agreement into the sale of 10 inventory homes within just 14 days. Forward Commitment is just one of many examples of how PrimeLending helps LOs redefine the narrative, stay ahead of the competition, and ultimately find new ways to close loans in the local market. Contact Nic Hartke now and discover how a move to PrimeLending can transform your approach and elevate your business. Your advantage starts here.

Don’t forget that the FHFA, which oversees Freddie & Fannie, is hiring.

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Mortgage activity picked up for a third straight week, with growth observed among first-time buyers, the Mortgage Bankers Association said

The MBA’s Market Composite Index, a measure of weekly application volumes based on surveys of trade groups members, climbed up a seasonally adjusted 3% for the seven-day period ending Nov. 17. The latest increase comes after similar rises of 2.8% and 2.5% earlier this month. Despite the recent upswing, applications still were 16.3% lower compared to the same week in 2022. 

“Mortgage applications increased to their highest level in six weeks, but remain at very low levels,” said Joel Kan, MBA vice president and deputy chief economist, in a press release. 

Applications have headed upward over the past few weeks as interest rates began easing. A better-than-expected October inflation report alleviated some economic angst, with data pointing to a softening economy, according to Kan.

Following the release of the inflation report, the 30-year fixed conforming average among MBA lenders finished last week at 7.41%, taking a 20 basis point dive compared to 7.61% in the previous survey. Points used by borrowers to pay down the interest rate dropped to 0.62 from 0.67 for 80% loan-to-value ratio applications.

The effect of lower rates contributed to a seasonally adjusted 3.9% jump in the Purchase Index week over week, with both conventional and government volumes increasing. But with limited inventory still suppressing demand, activity remained 20.6% below year-ago levels. 

Still, recent trends show glimmers of potential momentum in the home buying market. Pending sales over the past month based off of Redfin’s analysis of listings rose to its highest point in almost a year. Existing-home sales also ticked up on a monthly basis in October, according to the National Association of Realtors, despite remaining at historical lows.

Much of the recent growth is driven by first-time buyers, according to the MBA. “The average loan size on a purchase application was $403,600, the lowest since January 2023. This is consistent with other sources of home sales data showing a gradually increasing first-time home buyer share,” Kan said. 

Purchase loans guaranteed by the Federal Housing Administration, which are frequently used for starter homes, surged a seasonally adjusted 6.7%.

The MBA’s reported mean purchase amount declined 0.7% from the prior week’s $406,600, and with the exception of 2023’s first application survey, has remained above the $400,000 mark all year. The average refinance-application size also clocked in at its lowest this year, inching down 2.3% to $241,200 from $247,000 a week earlier. The overall average across all applications, likewise, fell to its lowest mark since January, finishing at $351,000, 1.3% lower from $355,700 seven days earlier. 

Meanwhile, the MBA’s Refinance Index edged up 1.6% but sat 3.7% lower on an annual basis. The share of refinances relative to total activity grew to 32.4% from 31.9% the previous week. 

Led by growth in FHA-backed purchases last week, the share of government-market lending grew correspondingly. Loans guaranteed by the FHA garnered 14.8% of all applications compared to 14.4% a week earlier. The volume of mortgages taken through the Department of Veterans Affairs saw a more muted increase, inching up to 11.3% of activity from 11.2%. Applications sponsored by the U.S. Department of Agriculture pulled back to a 0.4% share from 0.5% the week prior.

Similar to the conforming 30-year rate, all other fixed averages tracked by the MBA decreased last week. The contract rate of the 30-year jumbo loan dropped 14 basis points to 7.51% from 7.65% in the previous survey. Borrower points decreased to 0.62 from 0.67.

The contract average of the 30-year FHA-guaranteed mortgage saw a 17 basis point decline, descending to 7.19% from 7.36% week over week. Points also dropped down to 0.69 from 0.75 for 80% LTV-ratio loans.

The 15-year fixed-rate mortgage averaged 6.89% compared to 6.94% seven days earlier, while points used decreased to 0.76 from one in the prior survey period.

The 30-year fixed-contract 5/1 adjustable-rate mortgage recorded the only rise in the survey, jumping 11 basis points to an average of 6.76% from 6.65%. Points also increased to 0.82 from 0.72. 

But as borrowers received some affordability relief thanks to the pullback in fixed rates over the past month, the share of ARMs shrank again to 8.3% of activity from 8.8%. Interest in ARMs typically rise and fall alongside fixed-rate movements. Four weeks ago, adjustable-rate mortgages approached 11% of volume. 

Source: nationalmortgagenews.com

Apache is functioning normally

In the spring of 2019, “Zillow Home Loans” was launched by its parent company Zillow.

You probably know them best for their popular Zestimates, which are quick and dirty home value estimates.

Given their strong engagement with prospective home buyers and existing homeowners, they eventually decided to launch their own mortgage division.

The goal was to become “more of an end-to-end provider for housing-related services” like the many other companies out there trying to do it all.

For you as the customer, it’s yet another mortgage lender to consider when seeking financing. Read on to learn more about them.

Zillow Home Loans Fast Facts

  • Direct-to-consumer mortgage lender
  • Offers home purchase and refinance loans
  • Founded in 2019, headquartered in Overland Park, Kansas
  • Parent company is publicly-traded Zillow Group
  • Licensed to do business in 49 states and the District of Columbia
  • Funded about $1.5 billion in home loans last year
  • Most active in California, Florida, Georgia, and Texas

Zillow Home Loans, LLC is a subsidiary of Zillow Group (NYSE:Z).

The company was officially launched in April 2019 after acquiring Mortgage Lenders of America in the fourth quarter of 2018.

This gave them a quick in to the mortgage business, instead of having to start from the ground up.

They continue to operate out of Mortgage Lenders of America’s former headquarters in Overland Park, Kansas. And also have offices in Irvine, CA and Seattle, WA.

Mortgage Lenders of America was founded in the year 2000 and had approximately 300 employees when Zillow bought them out.

It’s unclear how many remain and what the company’s workforce looks like now. But per the NMLS, they have about 230 licensed mortgage loan originators (MLOs) on staff today.

The original plan was to streamline the home buying process for consumers who used their iBuying service known as Zillow Offers.

But that division was shuttered in November 2021 because they couldn’t accurately forecast future home prices.

They also operated a title insurance and settlement division called Zillow Closing Services, which was also shut down.

Despite this, they pivoted into a full-service mortgage lender that now offers both home purchase loans and refinances to consumers in 49 states and D.C. They are not licensed in New York state.

Last year, Zillow Home Loans funded roughly $1.5 billion in home loans, with a near-50/50 split between purchases and mortgage refinances.

They are most active in the state of California, along with Florida, Georgia, Texas, and Washington.

How to Apply with Zillow

To get started, you can visit their website and click on “Purchase a home” or “Refinance my home.”

The online forms appear to be a sales funnel that require your contact information at the end, so calling might be faster.

To skip the form, you can call the phone number listed to speak with one of their loan officers one-on-on.

Assuming you like what you hear and are ready to proceed, they say a pre-qual takes as little as 3 minutes online and won’t impact your credit score.

What’s nice is if you have an existing Zillow account, you don’t need to sign up a second time.

You can also generate a verified pre-approval letter if you complete a hard credit check and submit supporting documents.

Like many other lenders, they offer a digital mortgage application that allows you complete much of the process electronically.

This includes the application itself, linking bank accounts, uploading documents securely, and eSigning disclosures.

At the same time, they have a human lending team consisting of loan officers and loan processors that can guide you throughout the process.

Once your loan is submitted, you can visit the Dashboard to check on loan status, satisfying outstanding conditions, or message your loan officer 24/7.

Loan Programs Offered

  • Home purchase loans
  • Refinance loans: Rate and term, cash out, streamline
  • Conforming loans backed by Fannie/Freddie
  • FHA loans
  • VA loans
  • Jumbo loans
  • 1% down mortgages
  • Fixed-rate and adjustable-rate options available

Zillow Home Loans offers a wide range of loan options to satisfy most home buyers and existing homeowners.

This includes both purchase loans and refinance loans, including rate and term refis, cash out refis, and streamline refis.

You can get a conforming loan backed by Fannie Mae or Freddie Mac, or a jumbo loan that exceeds the conforming loan limits.

They offer both FHA loans and VA loans, but not offer USDA loans at this time.

However, you can get a 1% down mortgage in select areas, where they provide a grant for 2% of the purchase price.

Both fixed-rate and adjustable-rate options are available, including the popular 30-year fixed, 20-year fixed, 15-year fixed, and 7/6 ARM.

Zillow Home Loans provides financing on single family homes, townhomes, and condominiums, including vacation homes and investment properties.

They do not lend on mobile or manufactured homes, investment property condominiums, construction/land, or co-ops.

Zillow Home Loans Rates and Fees

Unfortunately, Zillow Home Loans does not list their daily mortgage rates online, nor do they have a list of lender fees readily available.

As a result, it’s unclear how competitive they are compared to other banks, lenders, credit unions, mortgage brokers, and so on.

When you do speak with a loan officer, be sure to inquire about both the interest rate and any lender fees charged, such as an application fee or loan origination fee.

While you won’t see rates on their website, you might see them if you compare rates on the Zillow Mortgage Marketplace, which also includes third-party lenders.

Either way, be sure to gather quotes from multiple lenders to ensure you don’t miss out on a better offer.

If you have other mortgage rate quotes in hand, you might also be able to better negotiate with Zillow.

My guess is their pricing is competitive with other online lenders, and perhaps cheaper than brick-and-mortar banks. But don’t make assumptions, get quotes.

Zillow Home Loans Reviews

On the Zillow website (yes, their parent company), they have a 4.82/5-star rating from about 8,000 customer reviews. That is an excellent score, especially given the very large sample size.

You can browse the many reviews there to see what past customers thought of the interest rates and closing costs. And whether they closed on time if it was a home purchase loan.

Over at LendingTree, they’ve got another solid 4.5/5 rating from more than 950 reviews, along with a 94% recommended score.

At Bankrate, they have a 4.8-star rating from nearly 100 reviews, and a 3.8/5 on Consumer Affairs from about 120 reviews.

They’ve got a better 4.8/5 rating on BestCompany and a lower 3.7/5 over at Trustpilot.

In addition, they have a 3.6/5 rating at their Overland Park headquarters from 117 Google reviews. So there is no shortage of reviews to read.

The company also has an ‘A+’ rating on the Better Business Bureau (BBB) website and a 3.53/5-star rating from about 32 customer reviews.

To sum things up, Zillow Home Loans offers the latest technology, has thousands of excellent reviews, and might even be able to get you to the closing table faster than other lenders.

They noted that the average lender took 43 days to close a home purchase loan between March 2023 – May 2023, per an ICE Mortgage Technology survey.

Meanwhile, their average closing time was just 31 days, 12 days or 28% faster than the industry average.

They also say they offer best-in-class service and total transparency, along with local market expertise.

The only question mark is pricing, as they don’t publicize their rates or fees. But if you find them to be competitive relative to other options, they could be a worthy consideration.

Zillow Home Loans Pros and Cons

The Good

  • Can apply for a home loan online
  • Offer a digital mortgage application
  • Close loans 12 days faster than the average lender
  • Lots of loan programs to choose from including 1% down option
  • Thousands of excellent customer reviews
  • A+ BBB rating
  • Free mortgage calculators and online guides

The Maybe Not

  • No branch locations
  • Do not offer USDA loans
  • Not licensed in the state of New York
  • Do not list rates or fees online

Source: thetruthaboutmortgage.com

Apache is functioning normally

The National Community Reinvestment Coalition released a statement slamming the Fed for bailing out banks while failing to address predatory lending allegations and leaving scores of homeowners at risk of foreclosure.

“Last week the Federal Reserve approved $230 billion in financial assistance to banks, including a $30 billion loan directed to investment bank Bear Stearns,” the statement said.

“Those are the first major actions to bail out several large banks for irresponsible lending practices that have predisposed millions of families to foreclosure, destabilized the US economy and global markets, and now are exposing the Federal government to billions of dollars worth of risky assets.”

The group said that while banks and mortgage lenders are being rescued, homeowners have yet to receive any “meaningful assistance,” noting that current efforts like repayment plans do little more than delay the problem.

“It’s frustrating to see working families ignored, while billions of dollars begin to flow to bail out the institutions that caused the problem,” said NCRC President & CEO John Taylor.

“The Administration is not concerned with the moral hazard of encouraging financial institutions to pursue reckless and irresponsible behavior that endangers the American taxpayer and economy,” said Taylor. “But they are completely ready to punish working families using ‘moral hazard’ as the excuse.”

Taylor added that the Fed has acknowledged predatory lending as a widespread problem but has failed to address past abuses that have left homeowners in unsustainable loans.

The NCRC has proposed an initiative called Homeowners Emergency Loan Program or HELP Now, a plan to purchase loans from securitized pools at a steep discount and apply the discount to the outstanding loan amounts to facilitate loan modifications and/or a refinance.

(photo: judepics)

Source: thetruthaboutmortgage.com

Apache is functioning normally

It’s time to check out “Inspire Home Loans,” which is the lending partner of home builder Century Communities.

They pride themselves on knowing how their parent company’s construction timelines work so your home (and) loan remain on schedule.

In addition, they offer special financing deals that are reserved only for the buyers of properties in their communities.

This means you might be able to get your hands on a low mortgage rate that outside lenders just can’t beat.

Read on to learn more about them to determine if they could be a good fit for your mortgage needs.

Inspire Home Loans Fast Facts

  • Direct-to-consumer mortgage lender
  • Offers home purchase loans
  • Founded in 2016, headquartered in Newport Beach, CA
  • A wholly owned subsidiary of Century Communities
  • Parent company is publicly traded (NYSE: CCS)
  • Licensed to lend in 18 states across the nation
  • Funded about $2 billion in home loans in 2022
  • Most active in California, Colorado, Georgia, and Texas
  • Also operates a title company and insurance agency
  • Known for offering big mortgage rate buydowns

Inspire Home Loans is a wholly owned subsidiary of Century Communities, which offers to-be-built and quick move-in homes in a handful of states nationwide.

Their parent company consider themselves a top-10 home builder nationally, and is publicly traded under the NYSE symbol CCS.

The lending division has been around since 2016 and is headquartered in Newport Beach, CA.

Their primary focus is providing home purchase loans to buyers of newly-built homes in the many communities they operate throughout the country.

They are licensed in 18 states, including Alabama, Arizona, California, Colorado, Florida, Georgia, Indiana, Louisiana, Kentucky, Michigan, Nevada, North Carolina, Ohio, South Carolina, Tennessee, Texas, Utah, and Washington.

Per HMDA data, they are most active in the states of California, Colorado, Georgia, Nevada, and Texas.

They’ve currently got 63 sponsored mortgage loan originators (MLOs) on their staff per the NMLS.

Similar to other builder-affiliated lenders, Inspire Home Loans also operates a title insurance and settlement company called Parkway Title, and an insurance agency called IHL Home Insurance Agency.

This means you can do one-stop shopping for all your home loan needs, though it’s always prudent to shop around for these third-party services as well.

How to Get Started

You can either visit a Century Communities new home sales office to get paired up with a loan officer, or simply go online.

If you go to their website, you can click on “Pre-qualify Today” to access a loan officer directory that lists the many communities operated by their parent company.

After selecting a state, you’ll be able to select a community to see which loan officers serve that particular development.

From there, you’ll see contact info and you’ll have the ability to get pre-qualified for a mortgage or log in if you’ve already applied.

Their digital loan application is powered by fintech company nCino. It allows you to eSign disclosures, link financial accounts, and complete the app from any device.

Once you’ve applied and been approved, you can satisfy conditions electronically by uploading necessary documents 24/7.

You’ll receive automatic status updates as your loan makes it from underwriting to closing.

You can also lean on your dedicated, human loan team that is available to assist and provide answers whenever you have questions.

They appear to offer a good balance of both tech and human touch to get you to the finish line.

And because they are affiliated with the builder, they’ll be able to communicate freely and keep your loan on track based on construction status.

Loan Programs Offered

  • Conforming loans backed by Fannie Mae and Freddie Mac
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Fixed-rate and adjustable options available
  • Down Payment Assistance
  • Municipal Bond Programs

As noted, Inspire Home Loans exists to serve buyers of Century Communities properties.

Since that’s all they focus on, they should have a good handle on the process.

In terms of loan choice, they’ve got all the major loan programs a home buyer could need, including conforming loans, jumbo loans, and the full array of government-backed loans.

This includes FHA loans, VA loans, and even USDA loans if purchasing a property in a rural location.

Both fixed-rate and adjustable-rate mortgage options are available, including the 15-year fixed, 5/6 ARM, and 7/6 ARM.

Additionally, they’ve got access to numerous homebuyer assistance programs, including down payment assistance and municipal bond programs.

These can come in handy if you’re short on down payment funds and/or need help with closing costs.

The Ascent Club

Inspire Home Loans also offers free access to a program called “The Ascent Club.”

It provides financial insights and recommendations to help prospective customers reach their homeownership goals.

This could include learning how to save for a down payment, how to build asset reserves, how to boost credit scores, and even improve your DTI ratio.

The goal is put homeownership within reach if there are certain fixable barriers that are holding you back.

And whether you’re a first-time home buyer or seasoned pro, they conduct free webinars to answer any mortgage questions you may have.

Inspire Home Loans Rates and Fees

They don’t list their mortgage rates or lender fees online, which isn’t atypical. But I do give lenders kudos when they do. It’s a plus from a transparency standpoint.

So we don’t know how competitive they are relative to other lenders, nor do we know if they charge a loan origination fee, underwriting and processing fees, application fee, and so on.

Be sure to inquire about any and all fees when you first discuss loan pricing with a mortgage loan officer.

Once you get a rate quote, that along with the lender fees makes up your mortgage APR, which is a more effective way to compare loan costs from lender to lender.

Despite the lack of information, they do advertise mortgage rate buydowns on their home builder website.

And from what I saw, they were some of the biggest permanent and temporary mortgage rate buydowns around.

One example offered a 2/1 buydown to 3.5% for the first year, 4.5% in year two, and 5.5% fixed for the remaining 28 years.

That’s pretty tough to beat when mortgage rates are close to 7.5 today%

But as always, take the time to shop your rate with other lenders, credit unions, mortgage brokers, and so on.

Inspire Home Loans Reviews

Over at experience.com, Inspire Home Loans has an excellent 4.89/5-star rating from over 1,500 customer reviews.

However, they have a 1.8/5 on Yelp from about 30 reviews, though the sample size is obviously quite small. At Redfin they have a better 4.4/5 from 7 reviews, which again is a small sample.

You can also search their individual offices throughout the country on Google to see reviews by location. This could be more helpful if you work with a particular regional office.

Their parent company has an ‘A+’ rating on the Better Business Bureau (BBB) website and has been accredited since 2015.

Despite the solid letter grade rating, they’ve got a poor 1.05/5-star rating based on over 100 customer reviews. This could have to do with their numerous complaints filed over the years.

Be sure to take the time to read through some of them to see how many pertain to their lending division versus their new home building unit.

Of course, chances are if you’re using Inspire Home Loans to get a mortgage, you’re also buying a Century Communities property.

To sum things up, Inspire Home Loans has the latest tech, a good array of loan programs, and may offer pricing specials that outside lenders can’t compete with.

They have some mixed reviews, but mostly positive ones, though your mileage may vary depending on who you work with.

But even if the process has hiccups, the savings from a big mortgage rate buydown could be worth it.

Still, take the time to shop third-party lenders, brokers, banks, etc. With other offers in hand, you can negotiate and potentially land an even better deal.

Inspire Home Loans Pros and Cons

The Good

  • Digital mortgage application (can apply for a home loan online)
  • Mostly paperless loan process powered by nCino
  • Lots of loan programs to choose from including homebuyer assistance
  • Mortgage rate specials for buyers of Century Communities homes
  • Lots of excellent customer reviews
  • Free access to The Ascent Club
  • A+ BBB rating
  • Free smartphone app

The Maybe Not

  • Aren’t licensed in all states
  • Do not list rates/fees online
  • Only offer home purchase loans
  • High number of customer complaints
  • May not service your loan after closing

Source: thetruthaboutmortgage.com

Apache is functioning normally

Banks have tightened lending standards for most categories of residential real estate (RRE) loans and home equity lines of credit (HELOC) over the third quarter of 2023. The tightening came amid elevated interest rates and uncertainty in economic conditions. 

A survey taken by the Federal Reserve showed that a 20%-plus share of banks reported having tightened standards on non-qualified-mortgage (non-QM) jumbo residential loans (23.9%), QM jumbo loans (26%), non-QM non-jumbo (20.4%) and HELOCs (21.8%), respectively, according to the Federal Reserve’s October 2023 senior loan officer opinion survey on bank lending practices. 

Government residential mortgage was an exception, where standards remained basically unchanged.

Only 4.2% of banks reported to have tightened standards on government residential mortgages, the report showed.

When banks become less willing to offer credit, it can have the same effect as the central bank raising rates. Households and businesses find it more difficult and costly to borrow, which tends to limit demand for goods and services.

“Banks most frequently cited a less favorable or more uncertain economic outlook; reduced tolerance for risk; deterioration in the credit quality of loans and collateral values; and concerns about funding costs as important reasons for tightening lending standards over the third quarter,” the report said.

Responses were received from 62 domestic banks and 19 U.S. branches and agencies of foreign banks. Respondent banks received the survey on Sept. 15, 2023, and responses were due by Oct. 5, 2023. 

The survey, fielded quarterly by the central bank, asks loan officers about topics such as changes in lending terms as well as household demand for loans.

With mortgage rates having climbed past 8% before dropping back down in the 7%-range in the third quarter, demand weakened for all RRE loan categories. 

A 40%-plus share of all surveyed banks said they saw weaker demand for all types of RRE loans.

The seven categories of residential home-purchase loans that banks are asked to consider are GSE eligible (42.9%), government (52.1%), QM non-jumbo non-GSE-eligible (57.1%), QM jumbo (56%), non-QM jumbo (63%), non-QM non-jumbo (61.4%), and subprime mortgage loans (71.9%). 

While HELOCs have gained popularity as owners leveraged accumulated home equity, rising interest rates dampened the appeal. 

The survey showed that 30.4% of banks reported weaker demand for HELOCs as interest rates remain at a 22-year high in a range of 5.25% and 5.5%.

Source: housingwire.com

Apache is functioning normally

It’s time to check out “Toll Brothers Mortgage,” which is a subsidiary of home builder Toll Brothers.

Toll Brothers is one of the largest home builders in the United States, priding itself on being a luxury home builder.

Instead of relying on third-party lenders to provide financing to their customers, they have a built-in financing division.

This allows them to oversee the process firsthand and navigate the complexities of new construction financing.

They say they’ve got a proven track record of smooth closings, and if they can offer you a mortgage rate the other guys can’t, they could be worth looking into.

Toll Brothers Mortgage Fast Facts

  • Direct-to-consumer retail mortgage lender
  • Provides new construction lending and home purchase loans
  • Parent company is nation’s 5th largest home builder
  • Founded in 1967, headquartered in Fort Washington, PA
  • Licensed to do business in 24 states nationwide and D.C.
  • Funded nearly $2 billion in home loans last year
  • Most active in California, Pennsylvania, and Texas
  • Offers mortgage rate specials to Toll Brothers customers
  • Also operates a full-service title and insurance company

As noted, Toll Brothers is a major home builder, the fifth largest at last glance, behind only D.R. Horton, Lennar, Pulte, and NVR.

They are a publicly-traded company (NYSE:TOL) and are currently valued at around $9 billion.

The company was founded in 1967 and refers to itself as the nation’s leading builder of luxury homes.

This includes both new construction homes and quick move-in homes. The company’s dedicated mortgage division is known as Toll Brothers Mortgage Company, or TBI Mortgage for short.

They exist solely to serve Toll Brothers customers who need to finance their new home purchases, and have about 77 loan officers on staff, per the NMLS.

In 2022, the company funded a healthy $2 billion in home loans, with 20% of volume coming from the states of California and Texas, and another 9% from Pennsylvania.

The company also did a lot of business in Arizona, Colorado, Florida, Idaho, Nevada, and Virginia.

They are licensed to lend in Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington.

Those purchasing a Toll Brothers home can also take advantage of in-house title, escrow, and insurance services via Toll Brothers Insurance Agency.

How to Get Started

To begin, you can visit a new home sales office or simply check out their website.

If you go online, they have a contact form and a loan officer directory that lists individual employees by state.

They can provide loan pricing and answer mortgage questions you might have about the loan process.

If you’re ready to proceed, they’ll ask you to complete a mortgage pre-qualification questionnaire and create a secure Toll Brothers account.

Within 14 days of signing a home purchase agreement, you’ll be asked to submit the loan application and upload required documents.

Their digital loan application is powered by ICE (formerly Ellie Mae). It allows borrowers to start the process from any device and complete most tasks electronically.

This includes linking accounts like pay stubs, tax returns, bank statements, along with eSigning necessary disclosures.

If approved, they’ll provide you with a loan commitment, as well as conditions needed to fund your loan.

Importantly, the loan approvals are valid through the completion of your home. And are integrated with Toll Brothers to sync with the builder process.

Since building a new construction home can take up to 12 months, their loan process may have longer timelines than a typical existing home purchase.

But they also offer quick move-in properties, in which case the process will likely only be 30 to 45 days.

Loan Programs Offered

  • Home purchase loans
  • Conventional loans backed by Fannie Mae and Freddie Mac
  • FHA loans
  • VA loans
  • Fixed-rate mortgages: terms ranging from 10 to 30 years
  • Adjustable-rate mortgages: initial fixed terms of 3, 5, 7, 10, or 15 years
  • Available on primary residences, second homes, and investment properties

While Toll Brothers Mortgage only offers home purchase loans (no mortgage refinances), they have a decent loan menu.

This includes all the usual offerings such as conforming loans backed by Fannie/Freddie, jumbo loans, FHA loans, and VA loans.

The only loan programs they appear to be missing are USDA loans and second mortgages, though these aren’t widely used by home buyers these days.

They’ve got a good selection of both fixed-rate mortgages and adjustable-rate mortgages, including a 10-year fixed and 15-year fixed.

With regard to the adjustable-rate loans, they’ve got the 5/6 ARM, 7/6 ARM, and even an ARM with an initial fixed term of 15 years.

And you can get an ARM if taking out an FHA loan or VA loan, which is less common.

So there’s no shortage of loan programs, and they finance primary residences, second homes and investment properties.

Toll Brothers Mortgage Rates and Fees

Like other mortgage lenders, they do not have a page dedicated to mortgage rates, nor are they publicized elsewhere.

Instead, they simply say they offer “competitive rates,” which obviously doesn’t give us a lot to go on.

However, they offer personalized financing packages and there’s a good chance they’ve got some special financing offers unique to home builders.

If you browse the Toll Brothers main website, you might see specials for certain communities.

I came across an exclusive offer of 5.99% on a 30-year fixed while rates are closer to 7.5% at the moment.

Lately, the captive mortgage lenders of home builders have been hard to beat, thanks to their big temporary and permanent mortgage rate buydowns.

Many are offering rates well below market if you buy certain homes by a specific date.

But always take the time to compare their rates and fees to outside lenders as well. You’ll never know what else is out there if you don’t put in the time to look.

LockSolid Rate Protection program

Since the home building process can take time, Toll Brothers Mortgage offers a special mortgage rate program called “LockSolid Rate Protection.”

Since It allows home buyers to lock in a mortgage rate for up to 345 days, with no cost until loan closing.

The up-front lock deposit is advanced by Toll Brothers, giving buyers peace of mind in an uncertain mortgage rate environment.

Additionally, a float down option is available on many programs. So if rates happen to fall below the rate you locked in within 30 – 45 days of closing, they can re-lock your loan at a better price.

The program is available on both fixed- and adjustable-rate mortgages offered by the company.

Just keep in mind that it doesn’t always make sense to lock in a rate well ahead of time. If you have an extended time horizon, floating your mortgage rate can provide more opportunities.

It’s also generally cheaper to lock in a rate with a shorter lock period.

Toll Brothers Mortgage Reviews

There aren’t a ton of reviews for Toll Brothers Mortgage specifically, though I did come across some.

Over at Zillow, they have a pretty poor 1.36/5-star rating from about a dozen reviews. Not a big sample size, but not glowing reviews either.

Similarly, they have a 1.8/5 from another dozen mortgage reviews on Google for their Fort Washington, PA headquarters.

They have a 5-star rating on Redfin, but it’s only from three reviews. Meanwhile, their parent company has a 1.12/5 rating on the Better Business Bureau (BBB) website from 85 reviews.

However, the company maintains an ‘A+’ rating based on customer complaint history, so they appear to handle issues that come up appropriately.

Take the time to read the customer reviews and complaints to see what the common issues are, and how you might be able to avoid them.

At the end of the day, using the builder’s lender can make sense if they offer a below-market mortgage rate.

There’s also the perception that they’re in better sync with the builder as the companies operate under the same parent.

But based on the complaints, this isn’t always the case. So be sure to shop around and get quotes from other mortgage companies and some independent mortgage brokers too.

Even if you do decide to use Toll Brothers Mortgage, you can use those other quotes to negotiate a better deal.

Toll Brothers Mortgage Pros and Cons

The Good Stuff

  • Can apply for a home loan online
  • Offer a digital, mostly paperless application powered by ICE
  • Loan approvals good through completion of your home
  • May offer special financing incentives to Toll Brothers customers
  • Lots of loan programs to choose from including ARMs
  • LockSolid Rate Protection program
  • A+ BBB rating
  • Mortgage glossary and mortgage calculator online

The Maybe Not

  • Only licensed in a handful of states where they build homes
  • Poor customer reviews
  • Do not offer USDA loans or second mortgages
  • Do not offer mortgage refinances

(photo: Montgomery County Planning Commission)

Source: thetruthaboutmortgage.com