THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – Where R Rates?
2.  PRODUCT HIGHLIGHT – Seller Seconds
3.  JACKISM OF THE DAY- Use Pain For Gain

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Tour De Mortgage Finance Learn Something New Everyday About Your Industry

WHERE R RATES?

It’s one of my favorite days of the week to see what ACTUALLY happened last week in rates.

After the volatility we had last week most folks likely have no idea what the end result was for the markets overall.

In the Conventional markets believe it or not we are better by 10 BPS from morning open to Friday close. We had a variance of 91 BPS from the worst to the best pricing of the week. Which of course is why you need to know where you are when you are thinking about locking.

In the FHA, VA and USDA market we lost 34 BPS or $340 worse pricing for every 100K in loan size. We lost most of that on Friday. We had a total variance of 65 BPS from the best to worse pricing of the week.

In the stock market the Dow Jones lost 31.77 points so not too bad from Monday open to Friday close. During the week we had a total swing of 412 points. That is why they say you do not lose money unless you actually sell.

The next big event is the Fed Meeting results coming out this Wednesday. The markets will be a little volatile as traders make their moves in anticipation of wat the Fed will do.

This past week we actually ended the day higher than where we started four of the five days last week. This means it is early morning trading causing the losses which many times is not what is happening here in the US but what is happening globally and we had some unfriendly bond news out of the European Central Bank, Japan and other inflation based news.

Do what you do this week folks. Stay positive, work hard, make a difference and you will finish each day proud of what you accomplish.

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

SELLER SECONDS

If you were around in the good ole days pre-2007 we did a lot of seller seconds. It was allowed to get you to the 100% CLTV and most were bogus I would assume.

Today, it is pretty rare that seller seconds happen but I wanted to make sure you knew they were allowed and what you are allowed to do.

This information is for Fannie and Freddie loans.

The first thing to understand is that the max CLTV is what is listed on your typical LTV charts. This means you cannot use a seller second to make up for any amounts above the usual CLTV limits or any amount that would make up for required down payments. 

For example, max LTV and CLTV for investment properties would be 85%. You could use a seller second up to 85% CLTV but nothing more.

For Freddie the amortization cannot be less than five years and cannot have any balloon term that comes due within five years.

The big piece to make sure you do correctly is that the interest rate cannot be more than two percent less than current market rate. If it does then it must be counted against the seller concessions.

This may be an option to avoid mortgage insurance with the right buyer and seller or to make a deal work. Or anyway you like to use it.

Use as marketing material for referral partners to let them know the option still exists and a reason to reach out.

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

USE PAIN FOR GAIN

Every person in the world has experienced joy that we all love to share with others. What is going good, the areas that are going well. This is good and this should be shared with the world.

Today’s challenge is something a little different. 

What area in your life have you experienced pain and suffering in excess of what normal folks have experienced? What have you been through that you would not wish on anyone else to ever have to go through. 

Then, as a result you learned from it and can help someone else through it.

For me, I have experienced pain in many ways unfortunately as we all have. There is one that is near and dear to my heart. 

I have been married 29 years but the first three years of my marriage we had a good marriage but I struggled with my expectations of who I wanted Misty to be and what it meant to love your wife. I was not that great at it. I was committed but I had no idea what it meant to love your wife and to accept her and I struggled during that time. Thankfully, I never cheated or anything like that. It was just a hard internal struggle.

Three years in I began a pursuit of figuring out what it means to truly love your wife and I have been learning for the last 26 years.

My pain, inspired me to help others who are experiencing the same thing and how to manage themselves through it. It is one of the reasons I love leading a couple through pre-marital counseling or marriage enrichment. Nothing professional and I cannot help people through big marriage problems but those who desire a better marriage I love to share experiences that helped me when I was failing.

What is your pain? Have you beat cancer, lost a parent or child or sibling, been humiliated publicly, done something wrong and got caught, financial catastrophe and rebuilt, survived depression or extreme anxiety, beat drugs or alcohol after realizing you were addicted.

Folks, there is a lot of pain in this world. For those of you who have recovered and recovered well and have compassion enough to be there for someone else experiencing what you have. Use it for good.

Take your pain and help someone with it.

Today, think of some way you can make a difference in the life of someone else.

Turn Times As Of This Morning Lookin Good!