THIS MORNINGS QUICK LOOK
- TOUR DE MTG FINANCE – Is Lending Tightening?
- PRODUCT HIGHLIGHT – First Time Home Buyers
- JACKISM OF THE DAY- Are You A Dictator?
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Tour De Mortgage Finance Learn Something New Everyday About Your Industry
IS LENDING TIGHTENING?
This is interesting to know and understand. The National MBa puts out interesting reports and today I want to show you the MCAI (Mortgage Credit Availability Index).
What this index shows is whether the lending standards are tightening or if they are loosening up.
A declining index means that lending standards are getting tougher. An increasing index means that lending standards are loosening.
The base point is from March of 2012. At that month the standard was 100.00.
As an example we are currently at an overall index of 96.60. This means that compared to march of 2012 we have a little bit more stringent lending standards from a combined lending average.
When I was reviewing this I was actually quite surprised how loose we got from 2012 up to COVID when lending standards got much more tight. Remember COVID overlays? Even if the volume was insanely high.
You can click on either graph and it will open a larger document if you would like to view the details.
The top graph is the overall lending standards and then below that it is broken out by Conv, Govt, Conforming and Jumbo.
Side note: Conforming loan means Fannie and Freddie. Conventional means any loan not insured by the Govt which can include conforming or non-conforming loans. Now you know ………
Look at the left side of the graph numbers. Conforming was tougher through the mid years. Conventional went up to 130% of what it was, Govt went up 450% of what it was in March 2012 and jumbo hit the 400% mark as well.
Overall we are stricter. Although Govt is still a little more loose as is jumbo.
This is an interesting topic you could bring up in conversations to help explain the market over the years.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
FIRST TIME HOMEBUYERS
One of the number one questions I receive on a weekly basis references First Time Home Buyers and what products are available.
I thought it would be a good day to send a little reminder.
HOMEREADY AND HOMEPOSSIBLE
These are NOT First Time Home Buyer Programs but they do allow for them. These are community products designed for low income folks that are 80% AMI (Area Medium Income) or less with 3% down option.
Perks are no LLPA’s.
Click to search AMI for your area
FANNIE MAE FIRST TIME HOMEBUYER PROGRAM (FANNIE ONLY)
This is a special program for lower income borrowers at 100% AMI or less with only 3% down. You NEED to check this out for your area. 100% AMI can be in the 6 figures for a lot of areas. Same link as above.
Perk is no LLPA’s. Great for lower score clients. Competes great with FHA.
FANNIE 97 AND FREDDIE HOMEONE
In order to use 3% down at least one borrower must be a first time home buyer. This is not income based. The perk is 3% down but you have full LLPA’s.
I would put together a flyer for these 5 options for your area with the AMI’s listed for your referral partners and potential clients. Great reason to reach out since they updated the AMI in June.
Jackism of the Day Truths and Thoughts that make you go hmmm
ARE YOU A DICTATOR?
One of my very good friends John Hines (Fellow AE and very good man) brought this revelation to me and I am really curious if this can make a difference in your lives and how you write emails.
Flagstar received an outlook 365 type of upgrade with our microsoft outlook software for corporate emails. If you do not have outlook, well keep reading but you may or may not be able to do this.
John called me up and was so excited. He said he is having a blast writing emails and the response he is getting is different from what he is used to.
You see, I love writing, it is my passion. I can express things that others cannot and that is just how I am wired.
John said his gift is when he talks to people. He cares, he has compassion, empathy, sympathy, a caring heart and his expression comes out when he is face to face or on the phone. I believe a good portion of people are that way.
When the new corporate rollout of our outlook software came out it included a dictation button. Yep, not new technology but new to us. You just click a button and you start talking and the email writes itself.
Here is the thing. He absolutely loved it. But why? Why did he love it so much?
He said, when he dictates an email he is just talking and the email writes itself. It has his personality, his little nuances, his punctuations that make him special. The things I love most about him come from when we have a person to person conversation vs an email interaction.
He writes things he would not write normally. He shared with me that he was doing a dictation email and he said these words. Look at what you did with this approval. I love, love, love, love! What you do with this.
There is no way in this world he would ever actually type out love, love love in an email much less put that expression across but when he dictated the information his true self came out in the form of an email.
What is the point of this Jackism you may ask? I can write and love to write and can express the words I desire to express and I am a madman that can do 70 – 80 words a minute due to my typewriter class I took in 1987 in high school.
If you are what I call a caller and always have to talk on the phone to get your point across. Give dictation a try and see what comes out on paper when you speak your words vs type them.
You may be amazed when you try it. It is fun! I have absolutely enjoyed it for the couple days I have tried it.
Experiment, try it, get out of your comfort zone and for the love all that is good in the world give something new a try and see what happens.
You never know what could happen and how much fun it can be.
