THIS MORNINGS QUICK LOOK
- TOUR DE MTG FINANCE – What’s Up With Rates?
- PRODUCT HIGHLIGHT – Open This Door With Realtors
- JACKISM OF THE DAY- Reading With Purpose
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Tour De Mortgage Finance Learn Something New Everyday About Your Industry
WHAT’S UP WITH RATES?
I just love the Monday MBS update. I love it because we see what happened over the entire previous week so we can guide our clients in to this week.
Last week from Monday open to Friday close we were down 19 BPS or $190 worse pricing per 100K in loan size.
On the FHA, VA and USDA side of the fence we lost 66 BPS or $660 worse pricing per 100K in loan size.
The DOW Jones increased 48 points from Monday to Friday and lastly the 10 Yr Note increased by 10 BPS from 3.85 to 3.95.
Why, you ask? All week we saw great reports as it pertains to the economy. GDP was up which means the U.S. is producing more goods and services. Jobless claims new and ongoing where down which shows stronger job stability, trade balance was less in the hole which means we are exporting more goods to other countries compared to what we were importing compared to last month and purchasing managers showed a better light at the end of the tunnel which measures supply and demand in the manufacturing sector.
These are all great things for the economy and a great reason to invest in stocks (ownership) vs bonds (debt).
We all should actually be pretty happy about these things as an American for the record. Then on Friday we saw PCE (Personal Consumption Expenditures) which measures inflation based on what consumers are buying and inflation was down more than expected.
This is actually a nice rally for both our country and our mortgage business. These are great things to bring up when chatting with your clients and referral partners.
You do not need to know all the numbers. Economy is looking better, inflation is looking better. This gives the Fed more ability to push harder to get inflation down but we have a lot more reports to come out before they have their next meeting which will be September 19th and 20th.
Today is a very light news day with the Chicago and Dallas manufacturing indexes coming out.
Tuesday is JOLTs (Job Openings and Labor Turnover) quits. Wed is ADP Employment Reports.
Thursday and Friday we have quite a few job type reports coming out.
Let’s see what happens globally and domestically this week.
Just don’t get caught up in the mess of worrying non-stop. As you can see each week we gain ground, lose ground and stay the same. You cannot control any of it.
Just stay aware with my morning updates, the morning text updates (above) so when someone asks you can respond intelligently.
Other than that go sell, process, compliancify and run your business. That is what you are paid to do so go do it better than anyone else.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
OPEN THIS DOOR WITH REALTORS
I think we can all agree that realtors are likely tired of hearing from loan officers trying to find business in this market.
What if you had a different way to get in the door than you had before?
This is just one little option you may want to look in to.
First, have your realtor do a search for properties with fixer upper in the listing or investor special.
You cannot search yourself on realtor.com so you can have your realtor pull listings in your area.
Then you reach out to that specific realtor and let them know you noticed they had a fixer upper and that you specialize in renovation loans like Homestyle Renovation, Homeready Homestyle Renovation and although we do not allow FHA 203-K loans. We do allow you to refer 203-K to us and get paid 1 point on the CD and we are awesome at them. Fyi, we do the same for Homestyle loans.
Of course, it would help if you educated yourself on the product prior to reaching out to realtors to know the basics.
Here are some of the basics as a starting point.
HOMESTYLE RENOVATION BASICS
Primary, Second and Investment Properties
Purchase or Rate and Term
Up to 97% on primary, 90% on 2nd Home
Investor to 85%
LTV based on Subject to Value
Must use 3rd party arms length contractor
Up to 40K use streamlined builder review
Above 40K full builder approval required
10% contingency required
Full PITI paid during renovation
Must be completed within 12 months
Costs up to 75% of subject to value
No minimum renovation amount
Can use to add or renovate anything on land or house
Can use to finish new construction already 90% built
Up 10% draw at time of closing
This is one simple way to learn a new product and try to increase your realtor market.
Jackism of the Day Truths and Thoughts that make you go hmmm
READING WITH PURPOSE
Reading has changed my life and brought purpose and meaning in ways I could never describe.
I read parts of up to 3 or 4 books each morning. It is typically the Bible, a book on my walk in faith, a book on marriage and a book on a skill set or ability I am working on becoming better at.
I learned a great lesson a long time ago that has served me very well and I want to share it with you as it pertains to reading with purpose.
The days I read from all 4 books I walk away less inspired than if I read from just one and many times it is a single book where I consume less than a paragraph. Oh, those are the days that I cherish the most. Those are the days that inspire purpose and change in ways I would never think possible.
This article you are reading right now is because I stopped after 3 sentences and digested a great truth and understanding.
If you are a fiction reader then by all means read until your hearts content and finish a book in a day. That is digesting a story and is more for entertainment than for change.
The books I am talking about is when you are reading a book for a reason. Learning a new skill set or a book on patience or marriage or any form of self-help type book.
As you read a book I challenge you to do 3 things.
#1 – Do not put a timeline on finishing the book. Nor put a goal of reading a certain amount of time or chapters per day.
#2 – As you begin to read and you find an aha or truth or an oh that is good that peaks your interest then STOP immediately.
#3 – Taste and digest the blessing that you just received from that book and do not move on until you have fully consumed the moment.
The most important part is number 3 which is to taste and digest the nugget you just received.
Think of a truth or an idea as a nice juicy piece of perfectly seasoned steak. Medium rare of course. As you take that nugget of truth close your eyes and chew briefly on what it is saying. Just long enough to let the flavor sink in to your mouth. Do not over think it. Just take it in and enjoy what it is trying to say to you.
Then swallow and digest it. Bring it within you. Do not overcomplicate it. Think of ways that you can use it in your life that day and apply it and use it that day.
So many times we read a great truth that we love. We say what a great idea and then we go on to the next paragraph to finish the chapter. We no longer recall the very reason we were reading the book in the first place which is to learn and instill change. This is a shame of missing out on the very purpose you set out to accomplish.
The second thing we do is we chew on a truth for too long and it loses it’s flavor. We spend so much time thinking on the idea that we never stop chewing on the idea vs digesting it which is the only way for us to actually receive the nutrients that it offers. We never put it in to play and instead say wow that “would be” a great idea.
Next time you read a book for purpose or change read only until you are inspired. Chew on it for a moment on how it can impact you or influence others and then do something with it.
You will find reading is much more enjoyable and impactful and you will find great excitement in trying new things each day.
Don’t waste your life chewing the steak. Swallow and digest it so you can taste from so much more that the world has to offer.
