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THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – MBS Takes Big Hit
2.  PRODUCT HIGHLIGHT – New Fannie Occupancy for Military
3.  MARKETING – 2 Ways To Truly Serve Your Clients
4. TURN TIMES – All New Submissions & Conditions 1 Day

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

MBS TAKES A BIG HIT

If you look at the graph below let me explain what you are seeing.

Of course red is bad and down is bad. 

You are looking at a 1 1/2 year look back on the 2.5% coupon (3% rate range you see on your rate sheets). 

It is sitting right now at 101.13 at the time of this typing (3:30 PM EST Yesterday). 

That means investors are buying a 2.5% coupon (that means the rate of return they are getting) for a yield to us of 1.13%. Then you add servicing fees, and g-fees and loan level pricing adjustments and that is how I say it is closer to the 3% range for the same return on your rate sheets. DO NOT get caught up in trying to calculate that.

To give you an idea of the difference the highest point on that graph was around Jan 4th of 2021 which is about 1/3 of the way through that graph and at that time the yield was 105.50.

So, the difference between almost exactly 1 year is 437 bps difference in pricing or $4,370 for every 100K in loan amount. 

Now before you start crying in your coffee and being a whiny baby we have been closer to the 102.5 range all over since march so at worst you are off by about 140 bps since March over the rest of the year which is around $1,400 per 100k in loan size.

Again, still pretty awesome rates so I am sending this to tell you if you are not marketing cash out, debt consolidation or renovations and everything else then you are going to miss the refinance boat. 

Consolidating debt or doing home improvements and increasing rate by .5 or 1% is still much better than unsecured loans or pulling money out of investments or 401K’s.

Today, I just wanted to explain where we have all been saying we are heading all year but know you have opportunities galore out there but you are going to have to work for it and explain why just doing a refinance of mortgage only is not your only option for borrowers.

Now get off your tails and go get some loans : ) 

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

NEW OCCUPANCY OPTIONS FOR MILITARY PERSONNEL

One of the great things about VA loans is the fact that military personnel if on active duty they do not have to occupy the property within 60 days per the Note. Either the spouse can fulfill the occupancy requirements or special consideration is given when on active duty.

Fannie Mae has just come out and stated that if an active military personnel is on active duty and would like to purchase a primary residence in an area where they cannot occupy the property within the normal 60 day time frame given in the Promissory Note then an exception can be made to close the loan as a primary residence if military orders are provided.

This has been a big issue in the past for conventional loans and I love Fannie is giving an opportunity to our military personnel to buy ahead of time.

This would make a great social marketing piece for you.

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

HOW TO TREAT THOSE YOU SERVE

As we continue down the road of branding and marketing my bestie of a friend Lucy said “Hey Jacko’ (that’s her pet name for me) when you think of the people you work with everyday what goes through your mind?”

Oh snap Lucy! That is a good one. Well, here is some thoughts you should ask yourself.

When you wake up in the morning and make your coffee and put your socks and shoes on the exact same as every single person that you come in to contact with that day does are you looking forward to encountering them or are they a burden?

Here are some tips on making sure your mindset is in the right place as you start each day.

#1 – Do you have Clients, Borrowers, Customers or Pain In The Tail Interuptors?
The correct answer is they should be clients.

A client means when you serve them you serve them as though they are not a transaction but you will have an on-going relationship with them for the rest of their lives. If they are doing a mortgage or need advice they are your responsibility.

This means your goal is to form a relationship. It is helpful to know who they are not only on the business side but the more you know on the personal side the stronger the bond will be. 

#2 – Do your thoughts take you towards them being your responsibility or are they your income?
The correct answer is your responsibility. If you are responsible then it is always you that can provide the solution.

Always be an advisor first. I assure you the business will follow. Always look to protect them like you would a family member (most of them anyway) and be their guide. Think of yourself as their guardian and not just the person doing their loan. What we do has a great responsibility attached to it.

Always make sure you are giving advice and not just information. Advice is personal, advice is valuable. Information is just data.

Make it a point to wake up today and truly care about your clients and make a difference in their lives today as I can only hope I have done for you this day.

Turn Times As Of This Morning Lookin Good!