THIS MORNINGS QUICK LOOK

1.  MBS – Velocity Of Money Part 2
2.  MARKETING – Lessons From McDonalds
3.  FLAGSTAR MEMO’S – Lot’s O Stuff
4. TURN TIMES – Lookin Good

MBS Pricing, Market Conditions/Information Learning Something New Every Day

MBS lost 20 BPS late in the day yesterday.
Those who signed up for my FJ Stay in the know now texting service were notified before we changed rates.
Sign Up Now and be in the know. 
Text 251-428-1564 to get started.

VELOCITY OF MONEY – PART 2
CLICK HERE if you missed yesterdays part 1

Below graph shows the velocity of money for M1 which is close to M2. The difference is M1 is accessible liquid cash and M2 includes investment and retirement type accounts. Not really important.

The highest flow of money since 1959 is end of 2007 to beginning of 2008. Where every dollar spent got turned over 10.6 times. See yesterdays definition above. Remember the more the flow of money the more demand we have on goods and services which equates to inflation which equates to higher rates. 

As you can see this chart equates to large changes in mortgage rates through out the different periods. It tells you when the country was spend happy and when it wasn’t. 

You notice on the far right 4 quarter 2019 for every dollar unit you spent we had a 5.5 velocity of money or the number of times a good or service was bought which triggered the recipient of that good or service to purchase another good or service. 

Then 2nd quarter 2020 (covid) hit and it dropped like never before seen to 1.55 and 1st quarter 2021 to 1.19. 

This shows that nobody was spending anything. We were all hoarding our money out of fear and of course nowhere to spend it which means excellent for mortgage rates and no inflation. 

2nd quarter 2021 you are going to see a higher velocity of money and I would assume 3rd quarter will be a much higher number. As these numbers increase the supplies will decrease causing inflation and higher mortgage rates. 

This is just another way for you to sound smarter to your clients by knowing more than your competitor.

FLAGSTAR JACK FREE MBS TRACKING SITE

Password is flagstarjack

CLICK HERE TO VIEW LARGER GRAPH BELOW

Marketing Opportunites Using Industry News Whatever is Happening Use it

LESSONS FROM MOVIE “THE FOUNDER”
I love watching movies and believe it or not I usually keep a note pad handy to learn a truth I may not know about. Yep, I know I am weird : ) 

But here are some cool principles  Iearned from this movie and would recommend watching it. It is about the expansion of McDonalds and how it went down. 

LESSONS FROM MCDONALDS STARTUP
What ever your best selling product is: Focus on THAT
Streamline everything for maximum efficiency.
Every part of your process must have a purpose or don’t do it.
Do not assume your customers understand your business model.
Change is NOT always welcomed by the industry/customers.
Consistency is the KEY to almost everything successful.
Never stop selling, never stop recruiting.
Making changes is hard and messy.
You will lose at times but keep moving forward.
Growth is an absolute battle. Don’t think differently.
Without persistence and consistency you cannot succeed.
Business is not worth doing the wrong way. Period!

McDonalds some bad things happened but we can learn from everything we do.

Flagstar Memo’s And Updates This Weeks Memo’s And Updates

FHA / VA / USDA MANUAL UNDEWRITES NOW ELIGIBLE TO 620

RENTAL INCOME OVERLAYS REMOVED HOPEFULLY TODAY

FREDDIE CASH OUT LLC OWNERSHIP
Previously only Fannie allowed the time a property was owned by an LLC to be counted towards the required 6 months for a cash out loan. Freddie now allows time owned by LLC to be credited towards the 6 months.

NEW FREDDIE SEASONING REQUIREMENT (NOT OVERLAY)
Effective for loans submitted to uwing with app date on or after Tuesday June 1st the payoff of a first mortgage that was originated as a refinance must have at least 30 days seasoning from the Note date of the previous mortgage to the Note Date of the new mortgage. 

HOW TO DEAL WITH MAY 17TH TAX DEADLINE REQUIREMENTS
CLICK HERE FOR LINK TO MEMO

Turn Times As Of This Morning Lookin Good!