Daily Rate Briefing:

MBS UPDATE

Sorry for missing in action the last couple days. I have been traveling and in meetings, but I am back and glad to serve you this morning.

To get you caught up we are up 10 BPS from Monday morning open so you can at least start your day knowing your better than where you were Monday morning. As to this morning we are down 6 but that was due to an overnight change from yesterdays close to this morning’s open and losing 13 BPS in overnight trading. So being down 6 actually means we are up 7 and in the green. I suppose it is all in how you look at it. Cup half full or half empty. But the rate sheets will see it as half empty and down 6 : )

Not much happening today although tomorrow we have the big CPI (Consumer Price Index) coming out which measures inflation based on a basket of goods and services that consumers pay in urban areas. It compares what they were to what they are now and out comes an inflation or deflation number. Expectation are they will be up .3% month over month and 3% year over year. If it comes in higher or lower it can move rates higher or lower.

If you are curious whether your mortgage applications are within line with others the overall mortgage applications week over week are down 6.38%. Applications to refinance went down 3.6% and purchases declined by 2.8%. Kind of makes sense moving into the holiday weeks ahead.

As we have seen in the past the good ole Fed cutting rates by .25 and getting the worlds hopes up has had an opposite effect. The average 30 year fixed rate week over week went from 6.33% to 6.38%.

Use this information in conversations with your clients and referral partners and see you tomorrow to help keep you in the know.

DYK – Mortgage Playbook:

INVESTMENT PROPERTY GIFTS

If there is one topic borrowers think they understand but often get wrong, it’s gift funds. And in a market where every deal counts, knowing exactly what is allowed, especially the differences between Agency and NQM can help you save a loan, structure a cleaner file, and even open new conversations with clients who didn’t realize they had options.

Here is the streamlined truth you can share today with clients and referral partners.

Gift Funds on Agency vs NQM

Fannie and Freddie keep gift funds simple in one major way:
They allow gifts on primary residences and second homes only.
Investment properties are off the table.

NQM flips that script.
And this is where your marketing opportunity lives.

AD Mortgage’s NonQM programs as an example allow gift funds on investment properties up to 80 percent CLTV with a required 10 percent borrower contribution. That difference alone can turn an investor who thought they needed more capital into a ready buyer.

Here is the big-picture breakdown you need.

Fannie Mae
• Gifts allowed on primary and second homes
• No minimum borrower contribution on most primary scenarios
• Gift of equity allowed

Freddie Mac
• Very similar to Fannie
• Allows wedding and graduation gifts with simple documentation
• Requires 5 percent borrower funds on second homes above 80 percent LTV

NonQM (AD Mortgage Example)
• Gifts allowed on primary, second, and yes — investment properties
• Investment purchases require at least 10 percent borrower contribution
• Gifts can be used for down payment and closing costs
• Not allowed for reserves
• Gift of equity limited to primary homes up to 75 percent CLTV
• Added restrictions apply for certain borrower types, but flexibility remains strong

Why This Matters
This is where you win business.

Most investors assume they need to bring every dollar to the table from their own funds. When you can confidently say Gifts are not just allowed, they are part of the structure and you unlock a whole new group of buyers who thought they were priced out or undercapitalized.

It also gives you a great reason to reach out to your database today. Try this:

“I wanted to share something many investors don’t realize. On the NQM side, you can actually use gift funds for investment purchases with as little as ten percent of your own money down. If you’ve been thinking about adding a property but didn’t want to tap all your reserves, this might be worth a fresh look.”

Short. Simple. Valuable. Make it a great day my friends!

Jackism – A Thought For Today:

BE WHO YOU ARE

I’ve been spending time in the book of Daniel, and one simple truth keeps rising to the surface.

Daniel’s circumstances changed, but he didn’t.

His world shifted overnight. New environment. New pressures. New expectations. Nothing felt familiar. And yet, the one thing Daniel protected above everything else was who he was.

That matters.

Most of us don’t get to choose our circumstances either. Life changes. Seasons turn. Plans shift. And this time of year has a way of magnifying all of it. For some, the holidays are full of joy, laughter, and connection. For others, they carry weight. Memories. Uncertainty. Quiet challenges that don’t always get spoken out loud. Often, it’s a mix of both.

Here’s what Daniel teaches me in the middle of all that. Where you are does not define who you are.

Daniel adapted to a new world, but he didn’t surrender his foundation. He didn’t fight every change. He didn’t become hardened or cynical. He stayed grounded. He stayed faithful. He stayed himself.

That’s harder than it sounds. I’ll be honest, I’m walking through some personal challenges right now. Nothing I need to unpack here, but enough to remind me how easy it is to feel unsettled when life doesn’t look the way we expected. When things are unclear, the temptation is to let circumstances shape us instead of letting our identity anchor us.

Daniel shows us another way.

Be rooted, even when things feel unstable.
Be consistent, even when the environment changes.
Be who you are, regardless of what’s happening around you.

As we move through the holidays and toward a new year, this is the reminder I’m holding onto. The greatest gift we bring into any season isn’t having it all figured out. It’s being present. It’s being authentic. It’s being grounded in who God created us to be.

Daniel didn’t change the world by becoming someone else.
He changed it by being fully himself, right where he was placed.

That’s a truth worth carrying with us.

No matter the season.
No matter the circumstances.
No matter what tomorrow brings.

Be Who You Are: Today, tomorrow and until death do we part.