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Where R Rates & Market Knowledge Information To Chat With & Share With Clients & Realtors
MARKET CHANGES
1 BPS = $10.00 change in cost to borrower for the same rate per 100K in loan size.
Take Coupon % & add .75%ish to know the area impacted on your rate sheets.
GREEN is GOOD for Rates – RED is BAD for Rates
| YESTERDAY CONV 6.0% – DOWN 2 CONV 6.5% – UP 8 GOVT 5.5%% – UP 18 GOVT 6.0% – UP 11 10 YR NOTE – UP 0 TO 4.28 DOW JONES – DOWN 31 |
| SO FAR TODAY CONV 6.0% – DOWN 2 CONV 6.5% – DOWN 5 GOVT 5.5%% – DOWN 8 GOVT 6.0% – UP 1 10 YR NOTE – UP 3 TO 4.30 DOW JONES – DOWN 163 |
THINGS TO SHARE WITH CLIENTS & REFERRAL PARTNERS
We are down a small amount this morning. Not enough to change rates from yesterday’s close so do not let the red scare you at this point.
Fed Chair Powell is doing his testimony as we speak and we may see some reaction to his comments as we continue in to the morning. As of this point in his testimony Fed Chair Powell warns that lowering interest rates too little or too late could put the economy and the labor market at risk. He also said cutting rates too soon or too much could stall or reverse inflation progress.
We have a 58 Billion dollar 3 year note auction today and then 39 Billion 10 yr tomorrow followed by a 30 yr 22 Billion dollar auction on Thursday. The 10 yr note auction tomorrow will have the biggest impact to our market.
Just in case you are curious used car prices are down 8.9% year over year and down .6% month over month which would equate to a 7.2% reduction year over year so the devaluing is lessening but still strong.
This is likely due to having plenty of new cars on the lots and therefore the need for used car inventory has lessened dramatically. It’s good news if in the market for a new to you used car but not so much if you plan on trading in your vehicle. This will also cause folks to become upside down in their vehicle if they did a no down payment loan.
Not much else happening today from a reports perspective so what is in the news and regular trading floors and ceilings will move the markets.
Have a great day!
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
DISPUTING APPRAISALS
Each lender has its own version of how to dispute an appraisal. What many do not realize is the agencies require how we are required to manage disputed appraisals.
This is a great topic as our appraisers need to be held accountable and our loan officers, agents, buyers and sellers need to equally be held accountable.
Appraisals are a very big deal with the agencies these days and they kick back a lot. More than you could ever imagine we have to defend why we accept an appraisal.
The reason is that they now have the data. They track every house, every comp, every sales price and every adjustment on every appraisal submitted via xml. That means appraisers cannot get away with being lazy or doing half hazard jobs anymore.
For the longest time when we are defending an appraised value as in you are on the appraisers side we hear a lot that they are the expert in the area the house is in and lenders should not be seconding guessing the experts. Unfortunately, they are not all experts and they are not all good. That is like saying every single loan officer is a great loan officer or processor or AE for that matter.
The number one reason I see is that the appraiser does not support their adjustments. They get sent back a lot for that. The appraiser then inputs the proper supporting documentation and the appraiser passes. Not always but most of the time they do. It is a matter clarifying how the value got to where it is kind of like we do in underwriting someone’s income.
HERE IS WHAT THE AGENCIES REQUIRE
FANNIE MAE
– Must send disclosure to borrower at time of application outlining appraisal reconsideration of value options. Must be sent again when sending appraisal to borrower.
– Disclosure must notate they get ONE TIME to submit all reconsideration of value concerns. This is not a back and forth multiple times. This is agency rule.
– If defects are found in the appraisal and the appraiser does not resolve the issues nor corrects or explains them properly then we are required to send these items to the appraiser licensing agency.
– Each lender must have a process which includes a designated dept or underwriter that reviews the appraisal.
– Borrower/Agent/LO etc sends in information to appraisal review dept. Again, this is a ONE time submission so have to be thorough and detailed.
– Note that the ONE time rule applies to borrowers. This does not apply to lenders who can send a few requests to fix what we do not like that we find. It is when the borrower submits the reconsideration request.
FREDDIE MAC
– Very similar to Fannie as far as the intent of the rule goes. Freddie does not designate it is a ONE TIME option. Flagstar does only allow one time as we can sell Freddie to Fannie and Fannie to Freddie so it is an across the board policy for most lenders.
VA
VA uses tidewater to let buyers know if they are not able to bring the appraisal back at value. Once the VA appraiser advises value will not come in the point of contact (LO, Realtor, Seller, Buyer) will have two working days to provide information to support a higher value than they are finding aka comps and why.
If using pending sales that is an option. Must provide full agreements and addendums and why they should be considered with the subject property.
FHA
Very similar to Fannie Mae including they get ONE TIME option to do this. In addition, they can provide a maximum of five comps to be reviewed. Other agencies do not designate a number.
USDA
USDA has no policy on reconsideration of value.
If you would like to see what a standard policy looks like. Here is the Flagstar Bank Reconsideration of Value policy.
FLAGSTAR ROV POLICY
Jackism of the Day Truths and Thoughts that make you go hmmm
MEANING OF LIFE?
What is the meaning of life is one of the greatest questions ever asked that we get to ponder in life on a regular basis.
There are many great and wise people that have tried to give a well thought out answer to that and yet we still ponder the question.
I have come across a thought process that helps me navigate that question as well as helps me live out the answer to that question in each moment of each day.
If you have read my Jackisms for any amount of time you will have noticed that I am a Christian. This is not a Christian morning update nor is it a Christian article that I write each day. I just so happen to be a Christian that writes these articles which means whatever I write that is going to be at the foundation of anything I do.
Today is no exception although you can be whatever or whoever you decide to be and input whatever you believe in the thought process for today in answering the question what is your meaning of your life.
What is the meaning of my life? My greatest desire in my life is to simply be a godly man. That means a godly husband, father, friend, brother, son, employee and AE for you every day.
You could say the same thing for yourself. It may be to be a good person for you or a character trait you can input to live out life with.
The issue then becomes, ok, what does it mean to be a godly man or a good person or whatever you decide to put in there for your life ambitions.
Answering the question of what does it mean to be a godly man? I have at least one answer of the many one could choose.
For me, it means to live each day, each moment, each action in doing what pleases the Lord. Yep, how simple life can be if we just lived life doing what we know pleases the Lord or for you it may be what pleases whatever your greatest ambition in life is.
Well then, what pleases the Lord? That is simple as well. Without pulling a bunch of scripture out it typically comes down to doing the right thing. As I like to say if you always do what is right then you will never be wrong.
Most of doing the right thing has a foundation of love behind it. What is love you ask? Well, here is an excerpt I am doing from memory so it is not verbatim.
Love is patient, it is kind, love does not envy, it does not boast, it is not proud. Love is not rude nor is it self-seeking. It keeps no record of wrongs and it is not angry. Love always protects, always trusts, always hopes and always perseveres.
My favorite three items in that are love does not envy, does not boast and is not proud. If I take just those three things out of my life it would fix a large percentage of my mindset and attitude I do not like about myself on certain days.
The only true way to live up to your version of what your meaning in life is to figure out what or who you are living for? The second part to that is to begin the process of working out how you will live that out in every moment of every hour of every day to find fulfillment and peace and purpose in your life.
The beauty of finding your purpose in life is that if it is a true and right purpose for your life then you can do it in any job, in any marriage, in any community and in any setting you find yourself in.
For me, there is no circumstances of my life I need to fix before I can fulfill my purpose or meaning in life. It applies to everything I am and in everything I do. What greater life can one live than to be living out our purpose that has been laid out before us.
My most fulfilling, enriching and wonderful days are always the days I am living out what I know to be my purpose and my meaning for my life.
How are you doing in knowing and living out your purpose and your meaning? Life is a journey and an adventure. Today, begin to live it out like you are on mission and experience the life you always hoped you could live.
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