THIS MORNINGS QUICK LOOK
- TOUR DE MTG FINANCE – MBS Today
- PRODUCT HIGHLIGHT – One Time Close Construction
- JACKISM OF THE DAY- Oral Vs Written Law
START EACH MORNING WITH EASY TO READ MBS UPDATE
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MBS TODAY
So what happened with rates from Monday open to Friday close last week?
We get so much volatility throughout the week that we rarely know where we actually ended up. This is important information to get to your referral partners to keep them in the know and looking to you for guidance.
Believe or not in the Conventional MBS after our big losses on Friday we started last week exactly where we ended the week. Zero BPS difference. We had a great Mon – Thu and the jobs report kind of took it all away Friday.
On the Govt side of the aisle we ended up losing 28 BPS or $280 in premium for every 100K in loan amount. Govt took a hit on both Thursday and Friday which caused the differences.
The 10 Yr Treasury began the week at 3.52 and ended the week down 11 at 3.41 which is good for mortgage rates. But as you can see what happened to the 10 Yr is not what happened to mortgage bonds. This is an indication of an even wider spread between those buying Treasuries Vs MBS.
There is still uncertainty in the markets and investors continue to know that when rates do go down their investments will be paid off earlier than they would like. It is a tough conundrum to balance out.
Not much happening until Wednesday when the CPI (Consumer Price Index) comes out and lets us know what inflation is looking like and the Fed are releasing their minutes from last month. The minutes allows markets to see all the things they talked about that they have not spoken about.
Text Flagstar to 888-290-3968 to find out what is happening in the MBS market at first rate sheet time.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
ONE TIME CLOSE CONSTRUCTION
Flagstar has amped up our one time close construction product this past week.
On our Conventional loan size one time close we have lowered our credit score requirements per below matrix down to 680.
Is Flagstar good at one time close construction deals?
Yes we are.
The question is who should do them with us. I have a couple standard responses I give to this.
IF you are a loan officer that gets an inquiry and needs a loan and you are doing a one off and never done it before with no intention of figuring out how to do them. PLEASE do not send them my way : ) It will not be a good experience for you or the borrower or me.
IF you are an experienced loan officer with construction experience you will be good to go once you figure out our process and systems. Bring em on.
IF you are new to construction but are willing to learn and want this to be part of your business model then we will help you through the process. But they are not easy due to all of the construction side of the process you need to know. It is a big learning curve.
We are best when you have builders who bring buyers vs buyers who bring builders. The reason is that we like the builder to have built 10 homes in the past with good credit scores and other items required for approval.
We do not allow self-builds, family member builds or never built a house or a few houses before which hurts a lot of deals.
If you fit the right spot give me a call.
CONVENTIONAL LOAN SIZE MATRIX
JUMBO ARM ONE TIME CLOSE MATRIX
JUMBO FIXED ONE TIME CLOSE
Jackism of the Day Truths and Thoughts that make you go hmmm
ORAL VS WRITTEN LAW
I had an epiphany this morning as I was meditating with the Lord that has changed how I view underwriting approvals.
Once again, I would like to do a PG (Predominantly Godly) article so you are warned. But this article I believe will serve us very well as it pertains to underwriting loans and reviewing conditions.
I am doing a study on the book of Mark right now and I am walking through verse by verse with what Jesus is trying to accomplish when he is going back and forth with the Pharisees and Sadducee’s and all the peeps that do not like the message He is bringing.
Jesus’s point in many of His comments are that they are blind to the truth of the true gospel. That they have set up so many oral and traditional rules that it blocks the true meaning of what was originally set out in the 10 commandments and the Mosaic law.
When I say oral and traditional rules. These are rules put in place to be able to better adhere to the commandments given by God during the time of Moses. The intent was very good but over the years with the execution of these new rules and traditions they became more important than the initial commandments themselves.
Jesus is saying, cleanse yourself of all your man made rules and just come back to me as I designed it and you will be set free.
Now, how in the world does that apply to mortgage underwriting?
I have been on a path of recent of reviewing every single loan approval that comes through my pipeline. This is quite the undertaking as I currently have over 90 million dollars in loans in my pipeline with a 60 day look back.
In this instance Fannie, Freddie, FHA, VA and USDA are the written commandments or the written word of what was designed to be able to offer guidance to their people which we call borrowers.
Then the lenders, underwriters, managers, AE’s, loan officers and processors have created oral and traditional laws that were intended to be an aid in helping us follow the guidelines set by the gods of mortgage lending (The Agencies).
In doing this, we have created a massive amount of confusion and many times are not able to see clearly through all the man made laws and myths we have created over the years.
I am trying to cleanse myself of thinking something is required when in reality the intent of the original guideline set by the agencies does not require it at all.
As you go through your day and as you review your files and as you sell your loans. What man made myths and rules have you created in your own business are causing you to miss out on the opportunities that are actually available to you but you can no longer see through the fog of yourself and lenders due to the blocks that have been put in place.
Ask the question, WHY? Why can’t we do this. The agency gods say we can. Why can’t we?
Do it with respect, do it with wisdom and do it with the intent of becoming better. Challenge the status quo and you may be set free.
But also realize that sometimes challenging the status quo may mean you have to take up your cross in a world that will not like what you are doing but in the end you will be set free. Look at what Jesus had to do to change the world around Him.
BOOYA!
Turn Times As Of This Morning Lookin Good!
| TURN TIMES | Purchase | Refinance |
| Business days | business days | |
| Conv Non-MI | 1 | 1 |
| Conv MI | 1 | 1 |
| FHA/VA | 1 | 1 |
| USDA | 1 | 1 |
| Jumbo | 1 | 1 |
| Conditions | 1 | 1 |
