THIS MORNINGS QUICK LOOK
- TOUR DE MTG FINANCE – MBS Today
- PRODUCT HIGHLIGHT – USDA Deposits
- JACKISM OF THE DAY- Gifts and Responsibilities
START EACH MORNING WITH EASY TO READ MBS UPDATE
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Tour De Mortgage Finance Learn Something New Everyday About Your Industry
MBS TODAY
Last week from Monday open to Friday close we gained 47 BPS in the Conventional mortgage market which equates to $470 in better pricing for every 100K in loan size.
On the Govt mortgage side of things we gained 94 BPS in better pricing or $940 better pricing for every 100K in loan amount.
We shall count our blessings even during times of turmoil. As a reminder, what is bad for the economy is usually good for mortgage rates.
Today the only economic reports coming out will be a 3 and 6 month bond auction which pretty much has no effect on the markets. Other than that the only items that will impact markets is over the weekend headline news.
Tuesday is another minimal economic report day and we are looking forward to the Wednesday interest rate decision. Lots of reports and lots of information of where we are heading will be out Wednesday if we can make it to that time without a bunch of headline news.
Anything that happened over the weekend I will send out at first rate sheet times this morning via my MBS morning text update which you can sign up for by texting Flagstar to 888-290-3968.
As a reminder we ended Friday with the 10 Yr Note yielding 3.39%. What we are hoping to see is to be below 3.46% for 2 or 3 days which we are now at 1 day. If we can achieve this we can hope to see lower rates soon. If this technical trading mark is not kept it could increase rates in the opposite direction.
This is why everything matters right now, especially the Fed interest rate decision on Wednesday.
Hang in there and stay tuned to what happens next. Mortgages are like a box of chocolates, you truly do never know what your going to get. Sometimes they taste great and sometimes not so much.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
USDA DEPOSITS
My territory is GA, AL and MS. To say I have a hodge podge of different clientele is an understatement.
The funny part is I absolutely love every area of clientele that I serve. From the jumbo high and mighties of downtown Atlanta to the well sharing, driveways attaching 17 households with no maintenance agreement to the lakehouse with 4 small adjoining properties.
You name it, I get it.
We were immensely blessed with USDA’s new rule of not having to document every single deposit listed on a bank statement to make sure it was not an income producing deposit that we have not been told about. This is important as USDA is a income dependent product that you cannot go over.
If you are somewhere near the country you should check out the 100% USDA financing as it is a great product.
USDA recently put out a new guidelines that you do not have to explain deposits that are under $1,000 and are not recurring. This is a huge win due to every single deposit previously had to be documented.
BUT, the new guideline goes on to say that any deposit that is recurring regardless of amount must be documented.
What this means is that underwriters will be looking for deposits that have the same name attached to it. Whether it be venmo, paypal or any name that recurs. If we have two months bank statements and the same deposit is tied to the same name then it must be documented.
If it is a 1 off and less than $1,000 it will not need to be documented.
Folks, each product has it’s own nuances. Flagstar is by far the #1 lender for any of your Govt loans. Nobody knows them better and nobody underwrites them better. It is my bread and butter, so if you say Govt you should be saying Flagstar Jack.
We do all products well but if you are great in Govt or want to learn the market make sure you check with me and I will help you make it happen.
Just be happy you do not have to document every deposit any more with USDA.
Jackism of the Day Truths and Thoughts that make you go hmmm
GIFTS AND RESPONSIBILITIES
For many of you, there was a light of hope last week given to you in the form of mortgage rates coming down a little bit to spark a little fire in your pipelines.
For many it has felt like walking in a dry desert and you were just searching for a little bit of water to drink. Just a drop of hope to know that we will all come out of this market that we are in.
For those of you who did and even those who did not I want to share something I experienced that encouraged and lifted me up and I hope will do the same for you.
It was early Saturday morning. My wife was not moving around yet and I was in my same place I am every morning. Sitting on my couch gettin my Jesus on, and I decided to see how Fridays registrations looked. I cannot see these until the next morning after you register them.
Friday’s are typically a slow day as many do not work as hard on Fridays. I opened up my reports and clicked the 17th registrations. Up popped a long list of companies, loan officers and borrowers. More than I have seen in quite some time.
A long time ago I stopped basing my mindset or happiness based on what I register or fund on any given day. That is not why I do what I do but it is usually a result of why I do what I do.
After seeing the screen pop up and looking at it, I closed my eyes. I tend to talk to my Man upstairs about pretty much everything all day long so as I closed my eyes I gave a shout out and said thank you for this gift, thank you for this blessing.
But then something inside me stopped. I felt Him saying yes it is a gift and a blessing but Jack look at that list again. With my eyes closed I pictured the screen in my head and I began to see company names, I began to see loan officer names, I began to see borrower names.
It was at that moment when I began to see what He sees, then He said to me. Jack, this is not just a gift or a blessing. Jack, this is your responsibility. People have entrusted their livelihood in you and this is a big deal.
He showed me that to whom much has been given, much is expected. And to whom little has been given, even what they have may be taken from them. When we are given a gift or a blessing or an ability in our life, that is not the point of the gift. The point of the gift is what we do with it.
When we are given a responsibility our future is based on what we do with that responsibility.
If you have a larger than most pipeline it is because of what you have done with your previous pipelines. If you have no pipeline it is because of either what you have done with your previous pipeline or what you are doing to build that pipeline.
This is not to discourage anyone. This is to encourage you if you have a larger than most pipeline you are not blessed, but instead you have been given a responsibility to be better. If you do not have a pipeline I encourage you to do what it takes to create one.
Your actions today will be your results tomorrow. Your gifts and your blessings today are your responsibility for years to come.
Cultivate your fields and the harvests will come. If you let your fields go unattended you will only find weeds to harvest.
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 |
