Where R Rates & Market Knowledge Information To Chat With & Share With Clients & Realtors

RATES BETTER TODAY

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

THINGS TO SHARE WITH CLIENTS & REFERRAL PARTNERS

We are up this morning after losing some ground yesterday.

We had some global reports come out this morning causing a little bit of the uptick in bond friendly news in Germany production being down and Australia maintaining status quo on rates. 

The big talker for today is the 3 year note auction at noon CST and of course the big boy tomorrow at noon CST the 10 Yr note auction. The level of demand for these auctions can help or hurt mortgage rates.

In case you are curious used cars are down 14% year over year and down 2.3% month over month so if you are in the market for a new car your current car is not going to bring as much as before. 

Redbook index came out this morning and sales last week compared to this same week last year is up 6% so the stock market did like that a little bit. Redbook compares sales of big box stores as a year over year difference to see what our economy and consumers are buying or not buying.

Stay tuned over the next couple days and we will see how these auctions impact our markets.

Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition

OMITTING DEBT PAID BY BUSINESS

In the old days you use to get proof that the business was paying a car or credit card or something out of the business bank accounts.

The issue with that being the only proof is that we qualify borrowers based on their tax returns and we use their net income after expenses. Due to this we do need to prove the borrower is paying the debt but these days we use the tax return to confirm it is coming out of their net income and we are not double dipping them twice for a debt the business pays. For most agencies but not all. Read on…..

Here are the rules for the agencies on omitting personal debts paid by business. You will have cases where someone trades in a vehicle or something like that and those are always exception type situations and we have to look at the entire file.

FANNIE MAE
Cannot have delinquency on account.
Proof business paid by company such as 12 months cancelled checks.
The tax returns show the debt was paid out of cash flow of business.
If you write off mileage & not pmt you cannot exclude.

FREDDIE MAC
Freddie does not mention no delinquency allowed.
Business must have paid for 12 months.
Tax returns show interest, taxes, ins, lease etc to show taken out of business income.

FHA
Proof paid out of company funds.
If tax returns show interest expense in conjunction with the business debt you can only omit the interest portion of the debt that they write off since principal cannot be written off.
No 12 month requirement but must be on tax returns so pretty much 12 months is needed.

VA
VA does not have a specific guideline. Per the VA Home Center they can follow the co-signed loans where you prove another party is paying the debt like a business and there is no reason to believe that the borrower will have to participate in the repayment of the loan.
Some lenders will revert to FHA guides as well.

USDA
Proof business pays the debt from business account for most recent 12 months.

As you can see not all agencies are created equal in this area and I can bet not all lenders are either.

Jackism of the Day Truths and Thoughts that make you go hmmm

HOW TO LOVE AND BE GOOD AT WHAT YOU DO

In order to be great at anything I have always believed in two core things.

#1 – We must be taught HOW to do what we do.
#2 – We must know WHY we do what we do.

If you know HOW to do something but have no idea WHY you do something then you will be mediocre at best and not really enjoy your craft.

If you know WHY you do something and it fits in perfectly with your personal WHY but you do not know HOW to do it properly then well you will be enthusiastically mediocre at best.

Having both the HOW and WHY you can be successful but when you add the big number 3 then you are all in.

This comes from my faith walk and for you it can come from whatever drives you deep from within.

#3 – To BELIEVE in your WHY and your HOW.

If you know HOW to do something and even if you know WHY you do something if you do not BELIEVE in what you are doing then what is the point?

There are a lot of folks living this out in their spiritual lives or lifestyles they live and never really understand why they do not feel or experience what others feel and experience. It is because they lack true belief in whatever area we struggle in.

Do you BELIEVE in your company, do you BELIEVE in the role you are playing within your company, do you truly BELIEVE what you are doing is helping you be a better you and making a difference in the lives of others?

Stop, take a minute and ask yourself if you know HOW to do what you do, WHY you are doing it and do you truly BELIEVE in the difference you are making?

If you do not have all 3 of these and you feel life is mediocre or you are trying to find meaning in what you do and why you do it then my hope is today will help you know where you need to look to find that life you truly want to live.

Make it a great day today just because you can : )

PERKS TO GROW YOUR BUSINESS
MBS TRACKING SITE
HANDY DANDY GUIDES