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THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – New Rate Coupon Rolled Out
2.  PRODUCT HIGHLIGHT – Rural High Needs PIW
3.  MARKETING – Selling In Todays Market

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Tour De Mortgage Finance Learn Something New Everyday About Your Industry

NEW RATE COUPON IS ROLLED OUT

We have all heard and from time to time asked about off sheet pricing.

This means when you have a posted rate sheet sometimes you have a borrower wanting to buy down a rate but the rate they want does not exist or you price a borrower out and due to all of the adjustments there is no rates available.

As of yesterday we rolled out a new coupon that we are allowing to go higher in rate to cover more adjustments depending on your borrower.

One thing I have noticed is the cream of the crud is beginning to rise to the top as loan officers are beginning to take in loans that they likely would not have tried before due to lower volume and more time on their hands which means higher LLPA’s.

So, why do we not all just have rates with huge discounts and with huge credits to cover any needs you have.

Well, when we are selling to the secondary market we must have MBS investors that are willing to take the lower rate of return (lower mortgage rates) but get paid a lot more upfront or investors that are willing to pay up to get a higher rate of return. 

The higher rate of return is great but the amount of premium they pay to get that rate can be taken away quickly due to early loan payoffs because someone offers them a much lower rate not to far down the road.

It comes down to we can only sell what investors are buying and we just opened up a new coupon of investors willing to purchase our mbs pools with higher premiums.

All that to say if you are pricing loans with not enough premium we have opened up another tier.

Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition

Rural High Needs Appraisal Waiver

I ran across this yesterday on a loan file and thought I would share what it is and how it works.

Typically Fannie and Freddie does not allow for an appraisal waiver above 80% on a purchase.

But since I service GA, AL and MS a lot of my area is rural and this may be an option for more borrowers than you think but it comes with a twist.

You can get a PIW on AUS up to 97% LTV on a purchase of a primary residence with borrowers at or below 100% of area median income.

Getting the PIW is the good part. The not so great part is to exercise this PIW you must obtain a home inspection that is state licensed and they must have liability insurance that they are willing to provide. If state where no licensing is required they must be in good standing with a recognized inspection organization.

In addition, any issues that compromise safety, soundness or structural integrity must be repaired prior to closing.

So, it may be a great option for your borrower if the house is in good condition and they would like to waive their rights to an appraisal.

Marketing Ideas And Opportunites Little Things That Can Make A Big Impact

SELLING IN TODAYS MARKET

I am traveling visiting clients this week in Atlanta for the first time in 2 1/2 years and am enjoying my time on the road. 

The question I have been asking is what are the needs in this market and what are people looking for?

It was a simple question and actually a very simple answer but I really wanted to share this with you because I think it is important to remember.

He said he had a few refinance deals going on and I asked the question so who in the market is actually doing a refinance and are willing to pay these higher rates when their current rate is so much lower.

His response was well it depends on why they need the cash. (Thank You Bain)

Oh snap! Like I said not a complicated answer but the point of the story is you and I have no clue what someone is going through or the why behind what is happening in their life.

You and I are here to provide the options for them that are available at this moment to solve for their need and their need is more than just what current rates are.

The moral of the story is don’t be afraid to sell or offer rates or feel bad about offering higher rates based on what you know and what you have seen the past few years.

Go forward with what you have and be the solution for the need they have right now and do not worry about what was or has been but be here for them now.

It is their story and you are just helping them write the next chapter.

Turn Times As Of This Morning Lookin Good!