CLICK HERE TO CHAT LIVE WITH FLAGSTAR JACK
Clients, Non-Clients, Scenarios, Questions, File Items
Anything……Anyone

THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – MBS Drama
2.  PRODUCT HIGHLIGHT – USDA Trick When You Have Assets
3.  MARKETING – Well, So What Method

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

MORE MBS DRAMA

So what happened yesterday after a 3 day run of great progress on bonds.

First, we all know the war for the previous 3 days caused a run to safety to our bond market worldwide. This caused great demand for bonds so we did not have to pay as much to sell them hence lower rates for a few days.

So what happened? One part is the Biden state of the union address regardless of what you feel or don’t feel about Biden the concern in the markets was the oil prices. A massive amount of oil is produced in Russia and he did not give a concrete plan of where our oil is going to be coming from so this saw a huge increase in barrel of oil costs which is a very large hit to inflation.

Well, inflation is bad for bonds and this was a bad one. 

Then jobs report came out with very good reports on new jobs which is great for the economy and bad for bonds again so it began to say yes there is a war but economy is looking good. In addition, Biden let on that the concern over COVID is heavily reduced which again is good for the economy and bad for bonds.

Then, the FED chair came out and said they are going to do a .25 rate hike vs a .50 hike due to multiple reasons but this means a slower process of reducing inflation for the sake of not shaking up the economy as fast as they wanted to.

So, you have multiple items competing for positive and negative market news. In addition, the stock market surged on the economy news with COVID and jobs which of course if stocks are soaring then bonds are not as in demand hence getting hit and we get worse rates.

NOBDOY knows what will happen next. All you can do is inform your clients of what is happening and let them make the choice. We lost 102 bps from close Tue to close Wed. We will see what happened overnight soon.

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

USDA WHEN THEY HAVE ASSETS

One of the caveats for USDA is that even if a borrower meets household income rules if they can qualify for a 20% down conventional loan due to having sufficient assets then they cannot qualify for a USDA loan.

One option to allow them to have plenty of assets and still go USDA is if you take the purchase price of the home and figure out what the rate and payment would be for a 80% LTV conventional loan and if using that payment and their ratios are above 28 / 36 then the maximum asset rule goes away.

Do not use the payment on the USDA 100% with MI payment which many make the incorrect assumption on.

In addition, if they do not qualify due to BK, foreclosure or some other conv rule then you can omit the max asset rule as well. 

The 20% in max assets requirements is based on what they have at time of submission. If they are paying closing costs on the loan you can reduce that amount from their current assets. Some people have paid off debt to get below the required amount prior to submission as well.

This came from a scenario and thought this would be a good understanding for anyone that does USDA.

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

THE “WELL, SO WHAT” METHOD

We all sell something in our day to day lives whether it is products or services or systems or processes or community or whatever you want to call it.

Well, I say So What?

If you want to get down to the why behind what you are selling and get to the point much faster you must figure out what your value is.

So, think of anything you sell in your day to day business and say to your self I do this and then respond to what you do with the question “Well, so what?”

Here is an example amongst many.

You should use me because I am a broker.
Well, so what?

Well, because as a broker I have access to multiple lenders and multiple options that can serve your needs.
Well, so what?

Well, different lenders have different products and they have different rates which means I can get you better products and pricing than other lenders who do not have options like say Rocket Mortgage who can only sell Rocket Mortgage.
Well, so what?

By putting you in the right product, with the reduced mortgage insurance and the better rate I can offer you a 5% lower payment than the larger lenders can.

Ahhhh, you get the point.? Eventually you get to the true value behind what you are trying to accomplish when you continue to ask the question. Try it for everything you put out there and get some clarity.

Turn Times As Of This Morning Lookin Good!