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
| LAST WEEK CONV 6.0% – UP 50 CONV 6.5% – UP 36 GOVT 5.5%% – UP 50 GOVT 6.0% – UP 30 10 YR NOTE – DOWN 26 DOWN JONES – DOWN 209 |
| SO FAR TODAY CONV 6.0% – DOWN 19 CONV 6.5% – DOWN 9 GOVT 5.5%% – DOWN 11 GOVT 6.0% – DOWN 9 10 YR NOTE – UP 8 DOWN JONES – DOWN 66 |
THINGS TO SHARE WITH CLIENTS & REFERRAL PARTNERS
Had a great week of green last week and starting the week with some red to start the week.
We are going to have a lot of Fed speakers this week and three today and some this weekend with the continuous higher for longer comments.
This morning is more about retracting from last weeks really nice gains and kind of settling the market down a bit. Nothing major happened causing this.
Reminder that this is a short trading week and that the markets are closed on Juneteenth. Also remember that Juneteenth being a holiday is not part of days included in waiting periods like rescissions etc.
No major inflation data this week except some of the usual indexes that come out during this week. The Fed Speakers and global situations like in France and Bank of England meets Thursday providing their plan of how they are moving through the summer with their rates.
We will see where the day takes us and I will see you tomorrow.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
SECRETS OF THE AUS
We all know the smallest things can make or break an approve vs a refer with AUS findings. Did you know that they do not have to be perfect per the agencies? Did you know we have tolerance levels on final AUS submissions?
This also gives some insight of how they built the AUS and if you look closely you can know what you can and cannot get away with. This does not mean every lender will agree and allow it although it is an option to learn and know what can be done.
TODAY I AM DOING FANNIE AND FREDDIE ONLY. TOMORROW IS GOVERNMENT.
Fannie states that the terms of the closed loan must match the terms of the final AUS OR fall within the tolerances allowed.
Freddie says the final feedback notice on LP must be based on accurate submission of data to LP.
Ok, cool. What are those tolerances that are allowed? Let’s find out.
ASSETS FANNIE
Funds needed to close: If you document the actual amount of funds needed to close then you do not need to resubmit. My assumption is if cash to close changes and what you have proven is enough then resubmission of AUS is not required.
Reserves required to be verified: As long as underwriter has verified 90% of the reserves required on AUS you do not have to resubmit.
ASSETS FREDDIE
No submission is required IF:
* Verified assets increase
* Verified reserves increase
* Verified reserves decreases to an amount that is no less than the required reserves shown on LP. I think this is if you stated you have more and do not as long as you cover what LP says is needed you are good.
INCOME FANNIE
If original DTI is less than 45% and changes by less than 3% without going over 45% no rerun required. If above 45% ok to not rerun if within 3% as long as you do not go over 50%.
Here are some examples of how that works.
DTI WAS 35%, NOW 40%
Must rerun due to more than 3% change.
DTI WAS 44%, NOW 46%
Must rerun due to DTI went over 45%
DTI WAS 46%, NOW 48%
Does not need to be rerun due to was above 45% and only increased 2% (less than 3)
DTI WAS 46%, NOW 50%
Must rerun due to changed by 4% which is more than 3%.
INCOME FREDDIE
No resubmission required IF:
* Monthly debt payment decreases
* Borrower income increases (Except HomePossible)
*If monthly INCOME decreases and/or monthly debt payment increases it is ok
IF
DTI does not go above 45% or change by more than 3%.
LOAN AMOUNT CHANGES FANNIE
INCREASES
Loan amount can increase by the LESSER of $500.00 or 1% without rerunning AUS.
DECREASES
The loan amount can decrease by 5% or less.
LOAN AMOUNT CHANGES FREDDIE
Do not resubmit IF:
* On refinance loan amount does not decrease by more than 5% if MI not required on loan or if MI does not impact MI rates.
* Loan amount does not increase by more than lesser of $500 or 1% & MI not required or if MI then does not impact MI rates.
* If appraisal waiver is in effect above does not apply.
On both Fannie and Freddie just know if it impacts LLPA’s, MI Coverage or LTV parameters then it must be rerun.
THE BOTTOM LINE
The more you run AUS findings the more likely it is going to get stricter when it does its calculations. The system knows if you run an AUS multiple times you are trying to massage the outcome. Do your best to not rerun AUS and we will do our best to keep that approval and bring you home to the closing table.
If you are headquartered in AL, GA, MS, South TN or the FL pan handle give me a ring and lets start the conversation about doing business together. I handle broker, non-delegated, delegated and bulk mortgage companies and banks.
Jackism of the Day Truths and Thoughts that make you go hmmm
YOUR DESERT OASIS
What or who do you trust in when you are in a place that there does not seem like there is a way out?
Whether you are a Christian or not this is an interesting truth that is worthy of thinking about.
The example is from scripture although you can apply it to your life regardless of what you believe.
Everyone knows about the Israelites that God had wander in the desert for 40 years before bringing them in to the promised land.
Why did He have them wander in the desert for 40 years though? Does not seem like a very nice thing to do and it certainly was not easy.
One of the reasons is quite simple. He wanted them to trust in Him for all of their needs before delivering them in to the land full of milk and honey where they would not have to rely on Him for their very survival.
Have you ever been in a situation or a phase of life where you felt like you were out in the middle of the desert with no person around, no resources to be found, no hope of what was around the next corner and just felt lost?
What or who did you trust in during that time to live life?
Our desert oasis is knowing and understanding what we truly trust in when we feel there is no hope. When we look around and we must rely only on what is inside of us. What we believe will make it through, to provide the will to move forward and to say I can do this, I can make this happen, I believe there is a way out and a way to find hope in what truly is around the next corner.
For me of course that is my faith. There is nothing in this world that I put my trust in more than Him. He is my desert oasis. It does not matter what is happening around me, I always have an oasis no matter how harsh, dry, sandy and miserable my location looks from the outside.
For you it may be believing in yourself, in your abilities or in whatever brings you peace and joy and love and patience and self control.
It may be a loved one that you turn to when you are in your desert or a book or author or something familiar that has helped you in the past.
My encouragement to you today is to remember who or what that is that you can always draw from when you are in your desert and do not forget the oasis they are in your life. The safe haven that it offers you regardless of your circumstances.
When we strip ourselves of everything we think that matters it is at that point we truly find what actually does matter in our lives.
Spend some time today appreciating what that is in your life. What is your source of trust when everything else seems to have fallen apart?
PERKS TO GROW YOUR BUSINESS
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HANDY DANDY GUIDES
