THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – Monday MBS Update
2.  PRODUCT HIGHLIGHT – VA Alive & Well Statement
3.  MARKETING – 
4. TURN TIMES – 1 DAY ON EVERYTHING. SHYAA!

Tour De Mortgage Finance Learn Something New Everyday About Your Industry

MBS UPDATE

This week is a very light news week EXCEPT Wednesday. Geez! 8 different reports coming out on Wednesday that can impact the markets. Mainly around Personal Consumption Indexes which are key indicators of what people are making and spending and how that impacts the economy which does impact rates. 

No real news on Mon or Tue and the bond market is closed Thursday and closes early on Friday at 1:00 PM.

Just as an fyi usually lenders price out a little bit when the market is going to be closed for an extended period of time due to what can happen in the world that will impact rates while closed so be mindful of when you lock.

Last week from Mon open to Friday close we gained 11 bps so not a bad week overall although we were looking good on Friday we lost a lot of the previous gains earlier in the week. On the govy side of rates we had huge swings all week but in the end from Mon open to Friday close we gained 1 bps. 

This is a great explanation of why it is important to know where you are locking when you have wide swings and not to overreact but also to be aware of where we are trading. This week was a perfect example of trading within a specific trading window from top to bottom. Check out the chart below. The red is the ceiling and the grey is the floor. We were near both and everything in-between. The spread between those two lines is 52 bps. That is a lot of money depending on where you locked it during any given swing.

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

VA ALIVE AND WELL STATEMENTS

For some reason I have had multiple loans with Veterans out on deployment recently so I thought I would share some insight on the Alive and Well Requirements when a military Veteran is on deployment.

The status quo has always been the immediate Commanding Officer acknowledging that the borrower is  alive and well prior to our closing. Been that way as long as I can remember.

This week during an in-depth conversation with underwriting management it is actually ok for you to email the borrower and the borrower respond to your email the day of closing acknowledging they are alive and well.

Most deployed individuals do have access to email so this is an easy way for them to know they need to be available and respond to an email the day of closing. Always prepare in advance for items like this.

If your borrower is special ops or on some secret black ops mission in the Indian Ocean (Think Top Gun event that never happened) then you may still have to go with the CO of some sort. Plan ahead. 

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

KNOW YOUR CUSTOMER

I think I am going to harp on this one a little bit more just because I want to.

This past week or honestly past few weeks I have been completely amazed how little many folks know about their borrowers. I mean I actually scratch my head and say WHAT? You do not know the answer to that question? They respond with I just didn’t ask. 

I think we have either gotten scared to have a conversation about a borrowers situation to the point that we feel any form of intrusion in to their personal life is not something we are allowed to do and by personal I usually mean financial. OR, we just do not care enough to find out the details in order to present the story to the underwriter. 

The most important part about gaining a lifelong relationship with a borrower is to understand their story. How they got here, where they are going and how you can best help them through the process.

I had one client ask me about a new purchase deal and it was moving to a new city. I asked well where are they living now and what are they going to do with that residence? They said I am not sure where they are living or if they have another place since it really does not apply to them buying a new house. I just care about the new house so can you do it? 

I understand only ask what you need but wow the gap between truly knowing your client and being a data processor has truly increased over the past few years. Personally, I love getting all up in someones business. It entertains me and usually makes me feel better about mine. HA!

For a long time I did surface level marriage counseling and enrichment and people always asked why I enjoyed helping others. I always said well because I did not realize how good I really have it til I spoke with them : ) That may not be a good reason to get to know your customer but I do encourage you to make a difference in their lives vs just making a paycheck.

Make a difference in someones life today!

Turn Times As Of This Morning Lookin Good!