THIS MORNINGS QUICK LOOK
- TOUR DE MTG FINANCE – What To Expect In Originations
- PRODUCT HIGHLIGHT – Truths About Escrow Waivers
- MARKETING – Problem Marketing In 3 Steps
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WHAT TO EXPECT IN ORIGINATIONS THIS YEAR
Graphs have a way of telling a story better than words can in some cases.
Below chart is the history and expected volume of mortgage originations from 2002 through 2024.
The green is refinance and the yellow is purchase.
Of course, we knew we were going in to a purchase market which is almost 300 billion more than last year where the refinances are estimated to be 1.4 Trillion less than last year. This is good if you are a realtor and purchase driven shop and a little different if you are a refi shop.
Any way you look at it if you take out 2020 which absolutely was miserable for everyone in the mortgage business other than the money we all made and 2021 we have not seen this kind of volume since 2007.
Of course, a piece of that is the appreciation of homes so the units is likely less than 2007 but last I checked we do not earn income on units but on volume.
Lucy just wanted to let you know it is not all bleak out there and you may want to find a way to make sure your realtors are with you. Fyi, realtors who have no homes to sell are overly consumed by LO’s contacting them so you may want to get creative in your approach as well as protecting your relationships.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
TRUTHS ABOUT ESCROW WAIVERS
A couple things you may not know about escrow waivers but now you will.
We allow escrow waiver on investment properties if they have a 700 score and verified 1 year of property taxes in reserves.
A partial escrow waiver for insurance only is not subject to an escrow waiver fee.
Did you know if doing a cash out and they are delinquent by more than 2 months on there property taxes then we will not do an escrow waiver. DUH! They don’t exactly have a great proven record of paying : )
Escrow waivers cannot be used if mortgage insurance is on the loan. Even single or lender paid MI.
Flood insurance by law must be included in escrow payment even when escrows are waived.
If your transaction is an HPML loan then escrows must be added to loan.
Marketing Ideas And Opportunites Little Things That Can Make A Big Impact
PROBLEM MARKETING IN 3 STEPS
Sometimes the answer to a great marketing idea and increasing market share is so simple.
In light of my comments on mortgage originations above and gaining access to realtors or whomever do a test for yourself and see how easy this is.
1) What is a perceived need or a problem that realtors or referral partners or borrowers are having right now?
2) What is your solution that most do not have to this perceived need or problem?
3) What access do you have to these folks that can get across your solution to their need?
Here is an example to help you.
Should I bid over asking price and when will I break even?
This applies to realtors and borrowers.
Your solution is a report of sorts that calculates in expected appreciation and creates a breakeven in the form of months when they will be in the positive based on the amount they are paying for home.
Then decide how you can let them know this tool is available to them on any address.
Wala! You have differentiated yourself.
What tools do you have access to or can pay for that others do not have.
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 |
