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THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE –  Higher Home Prices = Lower Rates?
2.  PRODUCT HIGHLIGHT – November Free Flagstar Trainings
3. MARKETING – 4 Reasons Why Direct Mail Still Works

Tour De Mortgage Finance Learn Something New Everyday About Your Industry

CAN HIGHER HOME PRICES AND HIGHER RATES CO-EXIST?

An interesting thing happened in 2014 and again in 2019. 

The HOAM (Home Ownership Affordability Monitor) index listed below plus historical charts show when annual housing costs exceed area median income by more than 30% mortgage rates decreased in order for the market to adapt to these unusual occurrences. 

Note in the chart below that median housing price increased 69% since November 2008. But median income only increased 31%. Here is the part that is important though. You cannot compare income to housing prices. You need to compare increase in housing payments compared to income.

In this case in Nov of 2008 a persons housing expenses was 34.2% of their income. Currently it is only 32.4% of their income. Although, housing is much more expensive due to the current rates it is actually more affordable than it was in 2008.

The good news is that this phenomenon can bring about lower rates due to necessity but also that lack of affordability is actually not that much more than in prior years. It is definitely more expensive and becoming a larger burden especially to renters but not as bad as some people make it out to be.

Always make sure you are looking at the correct numbers when explaining how higher housing costs relates to annual housing income vs income increases or decreases compared to housing price increases or decreases. 

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

NOVEMBER FLAGSTAR TRAINING UPDATE
BEING WITH FLAGSTAR HAS IT’S PERKS
CHECK OUT OUR TRAININGS THIS MONTH

Live Webinars
 
The monthly webinar schedule is now available on the training site. Here’s an at a glance of classes available for our customers this month;
 
Week of November 1-5Renovation ProgramsUSDA Rural Housing with FlagstarLoantrac Workflow 
November 8-12Construction Loan ProductsCorrespondent Post Closing Compliance ReviewBroker Disclosures 
November 15-19Renovation ProgramsDelegated Loan DeliveryFlagstar Closing Services 
November 22-26Construction Loan ProductsLoantrac Workflow 
 
Customers can register for these webinars in the Flagstar LMS following the directions below:
 Login to the website: TPO.flagstar.comVisit Resources, then click TrainingUse the search bar at the top of the page (or browse the calendar)Type in the title of the class you are interested in and hit searchClick on “View Classes” and then “Enroll” 

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

4 REASONS WHY DIRECT MAIL STILL WORKS

Am I a huge fan of direct mail? Sure, why not? It’s a form of marketing.

Should it be your only form of marketing? Uh, NO!

Social media is by far the easiest, cheapest and fastest return on investment you will find.

BUT, why direct mail still actually works.
Note: I always suggest postcard direct mail vs envelopes.

#1 – Branding, Branding, Branding – They say a person must receive mail from you 7 times before they will consider you legitimate. Receiving monthly mail especially if past client keeps you top of mind.
#2 – Get to the exact clientele you want – You can buy lists for just about anything. If you want to prospect to a specific neighborhood or condo complex or to a certain zip code or county. (No red-lining please). You can get down and dirty with the details and get to who you want to reach.
#3 – Elevates Perception From Community – Along with branding direct mail makes you look larger than you usually are. This approach also helps with referrals from people who recognize your name.
#4 – Simple – Simple – Simple – Direct mail can be automated to send automatically and all you have to do is set it up and design the pieces. Then with a click of a button it can go where you want it and when you want it.

This works especially well in smaller communities that you reside in. When you reside in the community make sure your address is front and center on the postcard. People love working with locals.

Turn Times As Of This Morning Lookin Good!