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THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – The Future Of Subprime Loans
2.  PRODUCT HIGHLIGHT –  Freddie Refi Now 100% AMI
3.  MARKETING – What Drives You?

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Tour De Mortgage Finance Learn Something New Everyday About Your Industry

THE FUTURE OF SUBPRIME LOANS

The Sub-Prime world can be tricky on what you offer and what you securitize.

So, for example when Fannie/Freddie decided to hit investment properties and state you could only sell a certain percentage of loans as investment or second home the pricing went way up to control bringing in less volume.

Flagstar was the first to do a securitization of a pool of investment property loans to the open market. That means they were not guaranteed by the agencies.

In addition, we do the same thing with our jumbo loans. We securitize the jumbo loans and sell them to the open market.

That is great and we had great success in that but then when other lenders see it they do the same thing and all of a sudden all the interest and the buyers we had are now spread out amongst many other lenders. So the demand becomes less which means you have to reduce margins and sell it for less than you could previously.

So, the good news is that in 2021 the non-qm segment of lending increased by 17.6% year over year while at the same time overall originations decreased by 12.6% so their is a large interest in the non-qm world and it is growing.

What you will see is as a cool new product becomes cooler others will jump in on the band wagon and create more product which creates less demand from investors so as the non-qm world grows the margins have to grow with it to satisfy the investors.

Good news is that they are performing very well and investors like higher yields that perform very well even when it does not have the guarantee of the US Govt.

Flagstar is consistently looking at new opportunities to offer more products.

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

FREDDIE REFI NOW UPDATE

Effective Feb 1st the Freddie Refi Possible updated their program to allow borrower income up to 100% of the area median income.

I am sure most of you completely forgot about this product and honestly with rates increasing it is less applicable to many refinances but still great to know.

HERE ARE THE PARTICULARS:
Allows up to 65% DTI – Holy Smokes LUCY!
Up to 97% LTV
Limited Income requirements like 1 yr SE returns
Must be Freddie to Freddie
Must have good pay history
Must reduce rate by 50 BPS – Uh-Oh
Must reduce payment
Lender must give $500 credit for appraisal
Cannot get more than $250 back

So, here is the theory behind it. The agencies said everyone should be able to refinance. So, if they currently guarantee the loan, currently making their mortgage payments then why not help them out by lowering their payment and interest rate.

Fannie has one as well. Just look at when your dti is out of whack on a conventional loan.

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

WHAT DRIVES YOU

About 10 years ago I was with one of my previous coaches and he asked me what drives me to do what I do and how I do it and why I do it. I responded with honestly not really sure.

He encouraged me to get some counseling as a good habit for all high producers. I love stuff like that so I said sure. I am in.

Found a local counselor which I later fired because he over-charged me on a visit and would not take responsibility. HA! I showed him Lucy said : ) 

Any who, basically my childhood was like a Leave It To Believer family. Very solid but I found out that my entire childhood my friends always excelled in sports and other areas. I was always the friend to the ladies that came to me as a friend when they were being idiots. 

I was the guy on the sideline in soccer getting the crowd going while my friends were the ones scoring the goals. 

I was the class clown and teachers pet but never the scholar. 

I was always seen as the fun guy, the good guy but never looked up to or respected or thought highly of for any particular gift.

The counselor made me realize that my drive for success, for efficiency, to be the top of my company was because my entire life everyone around me under estimated what I could accomplish in myself and life. It was my driving force.

Although now I spend a lot of time mentoring and coaching others I think I will always be seeking to prove my worth to those that under estimate me. It drives me.

Not for their approval or at least not anymore but now I do it to change lives. I do not need others approval like I use to but when you doubt me I just smile and say to myself I do what I do for me and the last think I care about is the approval of others.

Who is under estimating you and are you letting it drive you or are you letting it destroy you?

Use others doubt as a driver for your success and not another excuse not to move forward.

Turn Times As Of This Morning Lookin Good!