THIS MORNINGS QUICK LOOK
- TOUR DE MTG FINANCE – What Is Impacting Rates Today?
- PRODUCT HIGHLIGHT – Federal Tax Payments
- JACKISM OF THE DAY- A Fresh Start
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Tour De Mortgage Finance Learn Something New Everyday About Your Industry
WHAT IS IMPACTING RATES TODAY?
I know all of you do not sit around and get excited about reviewing economic reports to see what is happening that could impact rates.
Yesterday on some similar reports to below we gained 22 BPS yesterday in the Conventional market and 9 BPS in the FHA, VA and USDA market. We even had the stock market get better by 211 and the 10 Yr went down (This is good) 2 points. Overall a great day which is why this information is important to know.
I actually enjoy learning the why behind the what and what is actually out there and being able to see the changes on a macro level.
Not all items impact us but if it is a big enough difference compared to expectations just about anything can change the tune of traders. Remember, traders are humans with emotions that react to news. The same way we react to what we see and hear.
As an example today we have the following reports that you may want to find out what happened.
9 AM – REDBOOK YEAR OVER YEAR
This comes out weekly and represent retail sales increases or decreases week over week compared to the previous year. They take about 9,000 general merchandise stores representing about 80% of the “official” sales published by the US Dept of Commerce. If this is way different than expectations this can be an indicator of good and bad news for the stock market which impacts bonds. We have been running fairly flat each week but last week it was 4x more than the norm at 2.9% increase year over year. That was good for stocks that day.
9 AM – CASE-SHILLER HOME PRICE INDEX MOM AND YOY
This measures the increase or decrease of sales for single family homes and is put out by the FHFA (Federal Housing Finance Agency). This information is based only on mortgages guaranteed by Fannie and Freddie. As a reminder the FHFA oversees Fannie and Freddie.
10 AM – JOLTS JOB OPENINGS AND QUITS
JOLTS stands for Job Openings and Labor Turnover Survey. This comes out once per month and it registers all jobs that are open or need to be filled as of the last business day of the month. It covers about 16,400 establishments including retail, manufacturing, local and US govt in all 50 states. As an FYI there were 9.58 Million jobs available last month. The job quits number is the number that quit voluntarily and of course the layoff numbers is the number that were laid off. Job quits were at 3.77 million last month and 1.52 million layoffs.
We also have the Dallas Fed Services Index and a 7 year Note Auction today.
The point is to show you a lot is happening any anything can impact traders.
When having a conversation today take those three items and work them in to your conversation to show you are in the know of what is happening in the economic markets.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
FEDERAL TAX PAYMENTS
This is one of those items folks forget the rules on so here is a refresher on the rules surrounding IRS Tax Installment Plan guidelines.
Below information is for IRS agreements that are not to the status of having a lien yet. If there is a lien you gotta pay it off.
It’s the little differences that make and break a deal.
There are 5 areas of concern you have to know for each agency.
#1 – Is an agreement showing terms, payment and total amount due required?
#2 – Proof no tax lien is associated with the amount owed.
#3 – How many payments on the plan are required.
#4 – Do you have to prove they are paid on time?
#5 – Can you exclude if less than 10 payments?
All agencies require #2 and #4. You always must prove no lien in the county of the subject property which is done with the title work. If making payments you do do have to show they are paid timely. This just means they are current so most recent proof showing last paid and next due works. We do not need a 12 or 24 month history. Just must be current now.
FANNIE MAE
– Installment agreement required,
– 1 payment on plan is required.
– Can exclude from DTI if less than 10 months.
FREDDIE MAC
– Installment agreement required.
– Freddie adds a cool niche. You can use an agreement showing the amount owed and “requested” payment. When doing this per Freddie you use the “Greater” of the requested payment or the balance owed divided by 72 months.
– No minimum payments required.
– Can exclude from DTI when less than 10 months.
FHA
– Installment agreement required. Flagstar will take most anything as long as it is from the IRS showing terms.
– My source shows 1 payment required but Flagstar does not require a payment to be made.
– Cannot exclude from the DTI regardless of months remaining.
VA
– Installment agreement required plus title subordination ensuring first lien position on new mortgage.
– Silent on how many payments. Flagstar does not require any to be made.
– Cannot exclude from the DTI regardless of months remaining.
USDA
– Installment agreement required.
– Must have made 3 payments on the plan. Cannot prepay.
– Do not have to include in DTI if less than 10 months.
Now you know. Maybe a good marketing piece to your referral partners or potential clients advertising “Owe the IRS? No Problem”, let us help you get in to that new dream home.
Jackism of the Day Truths and Thoughts that make you go hmmm
A FRESH START
Today is a great day! The reason it is a great day is because we do not have to worry about a single thing from yesterday, the day before or any other day prior to that in our lifetime.
The only thing we have at this exact moment is what or who we will be today. We can hope for tomorrow, next week, next year and the years that follow. But right now we only have today and in this moment you are in right now.
I read one of the most comforting verses in all of scripture and it reminded me of my favorite verse in all of scripture which made it a wonderful truth to share today.
Honestly speaking, on the days when I reference scripture in my Jackisms I can usually tie my faith and the truths I learn from scripture to believers as well as non-believers and I try to respect those who do not believe in my same faith.
For today, you are just going to have to work with me : ) These are two truths that give me absolute peace and hope so whatever you believe in I hope this comforts you as well in however this may apply to you.
The verse is Romans 8:1. Therefore there is now no condemnation for those who are in Christ Jesus.
That means none, nada, zero. No matter what we do, what we say, how we say it, what we look like, smell like, act like, we are not condemned in any way whatsoever.
The reason this one hit home is I am actually writing this yesterday morning (Monday) after my morning quiet time. I had woken up thinking about the weekend.
I had done a few things over the weekend that I likely could have done a better job. Nothing bad or anything. Just some choices thinking to myself, hmmmmm, I could have done this a little bit better or responded differently or given a little more of myself.
When we start our days condemning ourselves it can only allow the past to determine our future. The only person condemning us is our own self. The only person that can make a day what it is, is ourself. Therefore, if you start the day in condemnation you are determining your future.
Begin your day today free from yourself as nobody else has a right to condemn you and if you are a believer then know there is absolutely no condemnation whatsoever from the man upstairs.
That does not mean we do not have consequences. Oh do we have consequences. Nothing can change the past. You can only work today to redirect anything in the past to the hope for tomorrow.
Start out fresh today. Completely cleansed and full of hope for the future and doing the right thing right now.
My favorite verse in all of scripture completes todays thought.
It’s in Ephesians 5. Paraphrased it says to love your wife without blemish, without wrinkle, without stain as that is how we are loved.
Now take the truth that if you go in to each day not condemning yourself from the past and setting yourself free from what others think. Then if you love your spouse, your children, your co-workers, your community and look at every one of them and see them without blemish, without wrinkle and without stain and allow yourself to not feel judged by them even when they do.
Now that my friends is peace. That is purpose. That is hope. That is pure. That is lovely and that is good.
It’s your choice today to do and be above. It is also your choice to let the past dictate your future.
Begin today with no condemnation, completely cleansed and without condemnation towards anyone else and go live a great day!
