THIS MORNINGS QUICK LOOK
- TOUR DE MTG FINANCE – Well, That Hurt : (
- PRODUCT HIGHLIGHT – Marketing A Bankruptcy
- JACKISM OF THE DAY- Business or Busyness?
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WELL, THAT HURT : (
Honestly folks, nobody knows what is going to happen next.
It actually gets me kind of excited. So many people present doom and gloom. The way I see it is a lot of bad stuff has happened in the markets, so I see it as a challenge to make lemonade out of lemons. We can use these times to motivate us to see what we are made of.
This graph of the Conventional 6.5% coupon below has seen a decline of 153 BPS since September 13th. That is $1,530 worse pricing per 100K in loan size since Sept 13th on conventional loans.
The good news is that every locked in loan that you have in your pipeline. I am confident that you will not lose that client. See, a little lemonade already.
Yesterday there was a 69 BPS difference in yesterdays pricing from high to low so knowing when to lock is more important than ever. As a reminder you can use my free MBS tracking site link above to monitor the markets.
The JOLTS Report (Job Openings And Labor Turnover Survey) showed a large increase of 690K above expectations of jobs available than were available last month. That tells the Fed that the job market is healthy and a healthy job market means the Fed can be more aggressive in their fight against inflation. This is not good for mortgage bonds.
There are many other things on the landscape that are impacting rates. Especially the debt ceiling and we will see what ousting the Speaker of the House is going to do.
Remember, the markets are emotional and not always logical. That being said, you are emotional in many cases and not logical. Every person trading in the markets is just like you. Putting their pants on one leg at a time and reacting to what is happening to gain an edge one trade at a time. That is the reason there is so much volatility each day.
Bottom line is this folks. No analyst in the world can predict what comes next. Use this to your advantage. Make the claim that you do not know either and this is why.
Here is what it is today. Do you want it or do you want to risk going higher? Remember, marry the house and date the rate. It makes a lot of sense.
Don’t get down. Get motivated. Plenty of folks will fall by the wayside. Be the one that rises to the occasion and makes it happen for their clients.
Hope and action is what creates success. While others are worrying about what could happen, I suggest you focus on what CAN happen.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
MARKETING BANKRUPTCY
Even if you may know the truth about bankruptcy the common knowledge on bankruptcy by consumers and referral partners is what they have always been told.
They have been told 4 years since discharge for Chapter 7 and 2 years for Chapter 13 assuming no extenuating circumstances. This is true for Fannie Mae but not for all agencies.
This is a great opportunity to market to your referral partners or clients or social media that they do have options.
FREDDIE MAC
Freddie does not have a seasoning period but it does need to be discharged. Freddie considers foreclosure, BK, deed in lieu in the risk assessment based on the rest of the credit. I will say it is not very common to get an approve but it can happen in the right situation depending on timing.
FHA
If a mortgage is dismissed and not discharged there is NO waiting period. If filed a Ch 7 and need to use an approve eligible you need 2 years from discharge date. If at least 12 months has elapsed you can do with a manual downgrade.
On Chapter 13 you can do while in bankruptcy as long as they have paid at least 12 payments on time in to the plan. This is a manual downgrade. After a person is discharged they DO NOT need to prove pay history. This is a big deal sometimes. After two years from discharge you can use approve eligible. Prior to it is a manual downgrade even if approve eligible.
VA
VA has unique options not seen with the other agencies. Ch 7 requires 2 years from discharge. In order to allow between one and two years since discharge you need extenuating circumstances or borrower kept some of their liabilities from prior to the BK and continued satisfactory payments before, during and after the BK.
Then you can even possibly do less than one year since discharge if the following four items exist and they filed BK due to a failed SE business.
1. – Borrower obtained permanent position after business failed.
2 – No derog credit prior to business failure.
3 – No derog credit after the BK.
4 – Failed business was not due to borrower misconduct.
Chapter 13 allows after 12 months paid into the BK. After BK no longer require pay history similar to FHA.
USDA
Chapter 7 requires 3 years since discharge.
Chapter13 allowed after 12 months paid in to the plan similar to FHA and VA.
MARKET SOMETHING LIKE:
Financing a home while in or just after a Bankruptcy is possible. The key is to time the new home financing to meet the home loan guidelines. Following the right timeline will make a difference, so let’s talk and make a plan before you buy or refinance!
Jackism of the Day Truths and Thoughts that make you go hmmm
BUSINESS OR BUSYNESS?
I experienced first hand the brutal truth of the difference between doing your business and just experiencing busyness.
September was a tough month for my amazing bride and me due to we sold our condo, was buying a house which fell through after we sold our condo and two other transactions that fell through. All because we said they were not the one.
We are settled now and am truly back to business. What I experienced though was a great lesson for many of us.
Are you taking care of business or are you substituting busyness as an excuse to say you are taking care of business.
Doing business means you are reaching your goals, doing your disciplines, focused on your routines, being healthy and physically active, loving your family, taking care of your clients, being an asset to your co-workers and industry, functioning as the person that you desire to be.
The curse of busyness is taking care of things and saying I will get back to business as soon as this event in my life is over. Going shopping or eating out to avoid the stress of whatever you may be going through. Mowing the lawn in the middle of a work day, going hunting, taking a nap, cleaning the house, working on a home project and saying I will get back to business as soon as I get these things done.
Last month I was insanely busy occupying myself and I worked. I responded to clients. I was helpful. I was there for my peeps. But I was not taking care of business.
I ate bad, I did not exercise, my morning quiet time with the Lord was not as I desired, I was not prospecting and following up as I should. The results were evident.
I kept a nice mask on so you would not see me any different. I was busy making it work and I found myself in a place I do not enjoy experiencing.
We need times like this to realize what happens when you get off track.
Are you busy or are you doing your business. There is only 1 letter difference between the two and it makes all the difference in the world.
Join me today in getting back to business if you have found yourself just keeping yourself busy until…….. Realize the areas in your life that have lost focus and get back on track.
