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THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – MBS UPDATE
2.  PRODUCT HIGHLIGHT – GNMA 40 Year Mortgage
3.  MARKETING – Who Is Servicing Your Customer?

Tour De Mortgage Finance Learn Something New Everyday About Your Industry

MBS UPDATE

The current market is a great example of understanding fully how technicals work in unison with news in the industry.

News can blow through ceilings and floors depending on what it is but technicals which means monitoring the graphs each day to see what the emotion of the market is doing and how it reacts is very important in helping your pipeline understand where rates are.

This is going out early in the morning so I will not know what the markets did overnight but I will update that with my texting service so make sure you text the number above if you want to be added.

Look at the below graph and look at the last 4 days. The trading window we have been in for a couple weeks between 102.00 and 102.81 it has gone up and down. The last 4 days in a row the 2.5% coupon has tried to break through that red and brown line which are the ceilings. The last 4 days are the green then red then green then green markets to the right. A ceiling is basicly an emotional reaction the markets make once a security reaches a certain level. Without any news the markets will typically bounce. That is why I have been advising lock bias which means make a call. If it bounces again it could go way down as in almost up to 80 bps but if it breaks through we have a nice ride we could go up to that 103.20 range. (Good For Rates)

Now go to the next pic below. 

Now check out the 10 year which competes with our mortgage securities. Look at the trading on the last 4 days which are all sitting on that floor almost exactly. Every time it hits it bounces back up. It is tough to deny the importance of watching these graphs for pipeline lock management.

But if it breaks through it has space to fall to our advantage but could also bounce back up which it has done the last 2 days. 

The big news this week is going to be the Jobs reports later this week but more importantly this Wednesday where the FED speaks likely about tapering, inflation as well as short term interest rates. 

With this type news it can break through a lot of floors and ceilings so lock em when they are happy.

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

GOVT 40 YEAR MORTGAGE TERM

Whether you already heard this or will hear it at the water cooler I figured I would give you some guidance on the GNMA aka FHA, VA, USDA, PIH 40 year mortgage term.

Effective likely in December GNMA is creating a secondary market for Govt loans secured from 361 months to 480 months. But it is only loans that are modified.

The point is to allow servicers an option to modify loans for customers in distress so that they can more easily afford their mortgage payments. So, the up to 40 year option for distressed borrowers is being put out there as well as giving lenders who service these loans the ability to pull the mortgage out of the current pool on Wall Street and then be able to resell it to Wall Street with a longer term and insured by GNMA.

At this point there is no consideration to make this a product but you never know what will come of it due to higher cost of living and more expensive houses and trying to make homeownership more affordable and equal. 

But til then, if your borrower asks for your advice let them know they can ask about this option with there existing lender if they are in distress.

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

WHO IS SERVICING YOUR CUSTOMER?

Who do your clients think of when their mortgage comes to mind?

I have written a few articles about this but it really hit me this morning about how much business you lose everyday to servicers that talk to your clients any time they have a question. 

Here is just a couple questions you may want to ask yourself for the most valuable asset you have which is your closed clients. No better source exists for future revenue than past clients.

How are you marketing to your existing clients? 
Not a birthday card or Happy Halloween or Merry Christmas but what true value are you giving to your clients?

I already told you the greatest marketing tool ever which is sending a post card to every closed client the first of every month that comes at the same time as their mortgage statement to make sure they are calling you for a new loan vs the current servicer.

But what else? Brain storm for a minute and think about times of the year that they have a question about their mortgage or a how to that you could reach out and make sure they had the information.

To go even more hard core for those of you that do not have a ton of past customers but what about specific to them type marketing. 

For example, Mr. Customer just wanted to let you know your property taxes went up or down by this amount so expect to maybe get a change in your escrow account. Call me if you would like to do a review to know what to expect.

Or, Mr. Customer based on your neighborhood comps your value has increased by whatever % and you are currently sitting at whatever level. We may be able to get rid of that mortgage insurance or give you cash for any needs you may have.

Or, Mr. Customer it is tax time. Don’t forget you should be able to write off however much they paid in interest or points and be specific. 

Think of 12 reasons for once a month marketing that actually matters to your client. Fine, send them a birthday notice but also send them something of value. 

Above may take longer but the payoff is far greater.

Just a thought…………..

Turn Times As Of This Morning Lookin Good!