THIS MORNINGS QUICK LOOK

1.  MBS – Which Coupon Rate To Follow
2.  PRODUCT HIGHLIGHT – Lock and Look
3.  MARKETING – Re-Casting
4. TODAYS JACKISM – A Moment Lost Forever
5.  FLAGSTAR MEMO’S – National Guard Benefits Update

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

CHOOSING WHICH COUPON RATE TO FOLLOW

First, the coupon rate is the actual rate that the end investor will receive after the Servicer, Wall Street and the Agencies take their share or “strip” as they call it. 

For example, your note rate is 3%. Then why follow the 2 or 2.5% coupon rate?

Each month the borrower makes a payment the interest is divided up between the servicer, the guarantor (FNMA, FHLMC, GNMA) and the investor.

OF THE 3% IN INTEREST RECEIVED
.25% goes to servicer approx
.25% goes to guaranteeing agency approx
2.5% goes to end investor

Hence, we monitor what the 2 or 2.5% coupon is currently trading at.

Explain that at a dinner party and you will sound smart : ) 

FLAGSTAR JACK FREE MBS TRACKING SITE

Password is flagstarjack

Product Highlight of the Day Knowledge Gives You the Edge

LOCK AND LOOK

The other day I let you know you can do TBD’s with a fully underwritten loan so you can offer very fast closings and fully approved loans prior to bidding on a home.

In addition, did you know that we allow you to lock a loan up to 90 days without even having a contract on a home. 

This may come in handy for clients looking when inflation numbers begin to rear their ugly head over the next couple months potentially raising rates.

Marketing Opportunites Using Industry News Whatever is Happening Use it

USE RECASTING AS A MARKETING TOOL

A great item to advertise is your ability to re-cast or re-amortize your loan with borrowers who do not sell their house prior to closing on a new loan.

It also applies to people who tell you they have a big bonus coming and want to wait or any reason for not closing due to future financial wind falls. 

With Flagstar we can re-cast any conventional loan at any time. Merely fill out a form, send in the amount plus $250.00 and wala you have a lower payment. 

This does not apply to jumbo or govt loans. We cannot re-cast those product types.

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

NATIONAL GUARD ELIGIBILITY INCREASED

VA announced that Army or Air National Guard that have had 90 days of FULL TIME National Guard Duty with a minimum of that time being 30 days consecutively can qualify now for VA benefits. 

If you do a lot of VA this would be a great social media post. 

CLICK FOR VA CIRCULAR

Turn Times As Of This Morning Lookin Good!