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THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – Why Rates Keep Dropping
2.  PRODUCT HIGHLIGHT –  Forbearance Tricks You May Not Know
3.  MARKETING – Your White Knight

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Tour De Mortgage Finance Learn Something New Everyday About Your Industry

WHY RATES KEEP DROPPING

So of course there is a simple and not so simple answer but here is something you can respond with if you get this question which of course you will.

Hey Lucy, what do you see rates doing?
Well, Lucy this is not an easy answer but let me see if I can simplify it for you.

You see, The FED has said that they are going to increase short term rates by increments of .25% each time likely. Some of the folks that are on The  FED Board want to due it multiple times this year and some on that same board say they only want to do a couple times.

Well, the market does not know what will really happen so they are going with the assumption that rates will increase multiple times this year.

So, why do they increase rates? What is the purpose? Well, inflation is so high right now and the reason it is so high is that suppliers cannot keep up with the demand and when demand is higher than supply the cost of the product increases. So, increasing short term rates which are not mortgage but money that people borrower they slow down the flow of money because people will not buy as much if the cost of that money to buy the product increases. Think a 0% car loan vs a 5% car loan. Lots less cars sold in that scenario.

So, slow down the demand then you slow down the inflation. At least that is the theory.

The issue is with new reporting coming out that people actually have slowed down the demand likely due to the higher costs so the economy is actually slowing down without the Fed’s raising short term rates. Uh oh, we have a conundrum. If numbers continue to come in showing demand down will that change the attitude and mindset of The Fed?

So, say this does happen and The Fed says we are likely not raising rates but say once this year then that is going to be good for bonds and could be better for rates.

So the top items to watch are jobs reports for the economy, inflation reports for cost increasing due to demand, anytime The Fed Speaks it changes investors opinions of what to do.

So, the answer is nobody knows what will happen until the next person or report comes available.

The news and I do not mean CNN or FOX but the news on numbers reports and The FED speaking are very important to watch. But honestly, the experts are saying lock em if you got em as the outlook for rates is not positive any time soon.

Lot’s more market movers but right now it is the drama of inflation and The FED.

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

FORBEARANCE TRICKS YOU MAY NOT KNOW

What happens when a borrower is or was in forbearance on an existing home but they want to KEEP THE HOME and purchase a new home.

On conventional they have to make 3 payments once forbearance is complete.

But on FHA if a borrower owns a home and completes the forbearance program which means either they brought all the payments current, deferred the payments and started making the regular payments or did a modification and have new payment. 

IF SO, without making the 3 payments after finishing forbearance they can purchase a new home by manually downgrading the loan and underwriting the file.

As a reminder if you sell a home that is in forbearance you can immediately do a purchase conventional and you can do a purchase FHA as a manual.

But the above scenario does not apply to refinances on Conv or FHA. You must make 3 payments if doing a refinance vs a purchase.

As a reminder Flagstar goes to 600 on FHA and VA including manual underwrites and 620 on USDA including manual underwrites.

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

ARE YOU BEING A WHITE KNIGHT FOR ANYTHING?

I love having purpose. I love having a mission. I love coming to work in the morning because I get to because I want to impact lives. It’s not about the commissions or the volume or even recognition. It is all about helping others be the best they can be and in turn helping me be the best I can be.

If you are coming to work for the sake of money then money will be your only reward. I always say, no I would not come to work and do what I do for free. But it is amazing how the more I become about making an impact for others the more my income increases.

What is your White Knight Cause? Answer these questions:
WHAT DO I STAND FOR?
WHO DO I STAND FOR?
WHY DO I STAND FOR IT?
WHAT DOES IT MEAN TO YOU?
WHAT OUTCOME IS POSSIBLE BECAUSE OF IT?
WHAT IS THE REASON TO BE A WHITE KNIGHT?

The number reason most people buy any given product is HOPE.

Now ask your clients and yourself, do they know why you do what you do?

Turn Times As Of This Morning Lookin Good!