THIS MORNINGS QUICK LOOK

1.  MBS – CPI and Basket Of Goods
2.  PRODUCT HIGHLIGHT – Broker Branded Portal
3.  MARKETING – Know Your Customer
4.  FLAGSTAR MEMO’S – FHA, VA, USDA Manual Underwrites

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

MBS UPDATE

Over the last 2 days we have lost almost 100 bps due to the fear of inflation. They do think this is a temporary reaction but there are no guarantees. We have blown through 3 lines of resistance in the last 3 days. We have not been this low since April 13th. Hoping we see a bounce back soon. Same thing happened to stocks. Dow ended down 681 pts. Over 1,500 points down since Monday. Don’t look at your 401-K’s : ) 

THE BASKET OF GOODS
If you did not read yesterdays update go back and read as we are on day 2 of understanding how inflation works. 

Yesterday I stated the Consumer Price Index is comparing the cost of a basket of goods from one time period to another and the difference of this cost is the Consumer Price Index. 

So what is included in the basket of goods to calculate the CPI?
It is typically everyday items such as food and beverages like milk, cereal and coffee. They also include housing, furniture, clothing, transportation expenses as well as random items like tobacco, haircuts and funerals. 

In addition, they track items based on urban, suburban and rural areas. This is why it is very important when they say the Consumer Price Index which comes out from the bureau of labor statistics is announcing their numbers each month because it can impact bond prices. 

Remember that if it cost lets say 2% more year over year to purchase goods this is bad for bonds. Why? Because bonds are a fixed rate security so the interest bond owners are receiving from their fixed rate security has less buying power than 1 year ago. In order to accommodate for this loss investors in fixed rate securities which is mortgage backed securities require a higher rate of return in order to keep up with inflation which means a higher interest rate to mortgage consumers. 

STAY TUNED ON MONDAY TO CALCULATE INFLATION MANUALLY

FLAGSTAR JACK FREE MBS TRACKING SITE

Password is flagstarjack

Product Highlight of the Day Knowledge Gives You the Edge

BROKER BRANDED PORTAL

Did you know that as a broker if you set up your branded portal when your borrower receives esignatures, respa disclosures, loan estimate, intent to proceed and closing disclosure that the email shows coming from you and not from Flagstar.

When they click the link to sign docs a web page pops up with your logo, your contact information, your phone number and your motto.

Make sure you use the branded portal so your customer knows they are working with YOU and not some strange name they have never heard of.

Be part of the Flagstar Bank Broker Advantage.

Marketing Opportunites Using Industry News Whatever is Happening Use it

KNOW YOUR CUSTOMER

Some of the simplest things yield the greatest results. 

Try this concept out. I do it every time someone shows interest in working with me here at Flagstar Bank.

If you get a referral or an application online with a borrower you have never spoken with do the following:

FACEBOOK STALK THEM – Find common ground that you see on their facebook page that will allow you to maintain a common ground conversation.
LINKEDIN – If a business professional see what their history is and notate so you can better communicate based on what they have written about themselves. Check for common acquaintances.
USE ALL OF YOUR SOCIAL MEDIA MOJO

Remember that people like to talk about themselves. Let them talk. 

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

FHA, VA AND USDA MANUAL UNDERWRITES EFFECTIVE TOMORROW

Turn Times As Of This Morning Lookin Good!