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THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – Housing Price Variances
2.  PRODUCT HIGHLIGHT – VA Loan Flexibilities
3.  MARKETING – InfoGraphic Marketing

Tour De Mortgage Finance Learn Something New Everyday About Your Industry

A LESSON IN MEDIAN HOME PRICE VARIANCES

One of the more common news articles you read can say home values are on the rise or home values are on the decline or what is going to happen to the value of my home. When will it stop?

These are all great questions and unfortunately all we can use is indicators of current trends but you must know the indicators and their timelines to make wise statements.

Two such indicators are the NAR (National Association of Realtors) median home price and Case-Shillers price Index and they report items completely different. Buy why?

Blue is NAR and Red is Case Shiller. NAR shows a reduction yet Case-Shiller shows increasing.

The reason is quite simple but very important to know if you are explaining the outcomes to someone. The NAR report just came out and it comes out monthly for the previous month. So the October NAR median price reports median sales prices for September or the month prior to it’s reporting date and it shows this month that median prices are decreasing in September.

Before you freak out you have to know it ONLY covers the previous month so it only looks at September sales and it can be skewed based on the mix of homes that are sold. It is a good indicator but far from an exact science. All things being equal this is what happened but mess with the mix and you can get some different numbers.

The Case-Shiller is a bit different. This number actually comes out today but it covers a 3 month period. So Octobers report will cover sales from Aug, Sept and Oct to date. This report only covers sales from the same single family home being sold via an arms length transaction to a buyer of that same home. Of course, not in the 3 month period as that would be rare but whatever system they use it is a 3 month lookback on houses that have sold with specific increases figured in. 

This means that Case-Shiller typically reacts a month or two behind the NAR report because it includes the month prior to the NAR plus the current month. 

Case-Shiller is a better actual figures number but again it can also be skewed by the mix of homes that are being sold and included in the numbers. 

Both can tell you the direction but it is important to know the difference when reviewing the data.

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

VA LOANS – COMMISSION AS AN EXAMPLE

Many guidelines are set in stone and are black and white. They are what they are. This is especially true with Conventional loans and honestly USDA loans.

FHA loans which is designed for the blue collar worker you can work within less restrictive guidelines especially if doing a manual underwrite and the story can make sense.

But then you have VA. VA is all about taking care of the Veteran. That is the ultimate goal and VA gives much broader guidelines than the other products typically. 

For example, lets say a Veteran has been receiving OT for less than a year and you need it to qualify. The guides say 2 years so many underwriters just walk away from the deal but truly what is the reason for the OT and will it continue?

For example, a borrower goes to fireman school and becomes a fireman. They are required to work two 24 hour shifts or 18 hour shifts or whatever. It is how they are paid it is how it is done so of course we will give them credit for that OT because it is a guaranteed expected and normal part of their pay.

Or even less than 2 years but more than 1 it depends on the history and the story and the entire picture. When we look at Veterans we always look for the story to make sure it makes sense for them. Now, if they just don’t pay their bills and are job hopping then that is different. They still must earn the right to borrow funds.

Another one is many lenders or other underwriters just say no to employment less than 12 months for a Veteran. I have seen it so many times but they never ask why or what? 

For FHA and VA make your case, tell your story and make homeownership a possibility for those gray area borrowers. 

I absolutely love Govt loans and receive a lot of loans from lenders that do not know how to listen to the story. If you need a govy lender I know my guides and I love our borrowers.

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

POST AN INFOGRAPHIC

It is no big secret. People like pictures and people like videos and people just like to look at things that give information they care about.

In your marketing use some infographics which is basicly a how to do something in a very colorful and readable context. 

As stated before I use canva.com to create the look of a lot of my material. You have to be able to add your own content but it is a pick and use for different marketing type items.

For example look at these 2 infographics I just took out of canva without adding anything to them.

Just click, change the words and make them your own. What colorful creative things can you send out?

Turn Times As Of This Morning Lookin Good!