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THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – Moving To The 3.5% Coupon
2.  PRODUCT HIGHLIGHT – Tricks To Max Income Limits
3.  MARKETING – Getting From Me To Them

START EACH MORNING WITH EASY TO READ MBS UPDATE
TEXT “I’M IN” TO 251-428-1564 – IT’S FREE

Tour De Mortgage Finance Learn Something New Everyday About Your Industry

THE WEEK IN MBS

We and those who monitor MBS have officially swapped over to monitoring the 3.5% coupon vs the 3% coupon this past week.

What that means is that the 3% yielding rate to investors is no longer paying any premium for us to offer rates to borrowers and still make a profit. 

The 3% coupon ended the week down 128 bps between Monday’s open and Friday’s close ending at 99.60 which means we had to pay the investor 40 bps to get a 3% coupon which does not include any of the LLPA’s, lender costs or gfees and servicing fees.

Bottom line is we crossed a big floor with a ton of potential to continue to drop.

BUT, the name of the game will continue to be the war and the cost of oil and other commodities driving inflation way up and the inflation is trumping the war right now. 

The reason commodities control the inflation as they do is due to they are items required to produce many goods, products and services so when they go up it impacts a large portion of everything else we as consumer’s need.

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

FIXING MAX INCOME LIMIT ISSUE

Here is a very unknown rule as it pertains to qualifying borrowers on the HomeReady and HomePossible programs.

Both of these 97% LTV products are income based similar to USDA which means you can only make 80% of the area median income to be able to use the product.

But the little trick is when you are close to that maximum income Fannie Mae HomeReady requires you to use all of the income a borrower makes whereas Freddie Mac HomePossible only requires you to use the base qualifying income.

Here is an example:
Fulton County in Atlanta Area Median income is $85,700 and 80% of that is $68,560 so the borrower cannot make more than $68,560.

Base Income = $65,000
OT = $4,500
Bonus = $4,500
Total Income = $74,000

Fannie Mae HomeReady – Does not qualify because must use all income.
Freddie Mac HomePossible – DOES qualify if they only need the base income to qualify for the loan. Base income = $65,000 which is less than the $68,500 max amount.

Now you know!

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

THE TRICK OF PRESENTING ME WITHOUT MUCH ME

We have all heard a 1,000 times that the focus must be about the client and not about me when trying to build your business especially in marketing.

But, the other caveat is that it is also well known that people do not buy the product as much as they do the person selling the product so you must present in a way that they are buying from you more than just the product that everyone else has as well.

The key is to get through the you as fast as you can in order to get to them.

You see, empathy is the greatest gift in marketing as it allows you to meet your client wherever they are in the emotion that they are experiencing.

I assure you and know that all decisions begin and end based on emotion. Facts, numbers and logic only justify what they already intend to do.

This is why it is important to remember the awe in how you present to clients. What is the big awe of a solution you are providing to their need or their emotion. 

As they say address the emotion to get them in to motion.

Empathy is lying in their bed, walking in their shoes and letting them realize you connect with what they are trying to accomplish and you have the ability to make it happen.

Difficult yet so easy at the same time.

Turn Times As Of This Morning Lookin Good!