SEE MEMO’S SECTION FOR FHA PRICING SPECIAL THIS WEEK ONLY
MBS & Pricing Expectations My Summary From Barry Habib & The Market
BORING!!!! So, boring is actually good or we could just say thank you! In the graph below you cannot read it but the far left starts at Dec 14th then Tue Feb 17th the big transition downward then at the end of the day on Feb 25th we begin to normalize or at least not completely lose our shirts. So if you look at the MBS over the last 14 days we have pretty much stayed within that trading window (between red ceiling and green floor) which is how normal operations are. Look at Dec 14 to Feb 22 and you will see how long we were in that trading window. Not sure how the stimulus will rock the boat but we know inflation will soon but for now lets hope for where we are to be predictable. Fyi, we ended the day -2 bps so pretty much same as we started.
Stocks ended the day at a record high with DOW at 32,455 and S&P record high at 3,939. Quick note the DOW is made up of 30 huge companies that are listed on the stock market (Amex, Apple, Boeing, Coca Cola, Microsoft – you get the point).
It is a good gauge but a better gauge is S&P 500 which is made up of 500 large cap stocks. What is large cap? It means they have a market capitalization of 10 billion or more. What is market capitalization? You take the price of the stock x the number of outstanding shares and wala you have market capitalization. So 500 companies worth 10 billion or more gives a much better idea of where the stock market is.
FLAGSTAR JACK FREE MBS TRACKING SITE
Password is flagstarjack
Marketing Opportunities using Industry News – Whatever is happening – Use It
SECOND HOMES AND INVESTMENT PROPERTIES JUST GOT MORE EXPENSIVE
Evidently lots of people have been buying second homes and investment properties and the FHFA and the agencies do not like the risk that they are seeing so check out what they just did.
Effective for pools and loans delivered After April 1st which means right now for you on loans you are pricing and originating the following 3 items have been put in place:
NUMBER ONE
A Lender or Seller can have a max of 6% of loans that have multiple higher risk characteristics. These characteristics are CLTV greater than 90%, dti greater than 45% and FICO less than 680 on ALL occupancy types.
NUMBER TWO
You can only deliver 7% of all single family residences that are second home or investment properties.
NUMBER THREE
GSE’s will limit acquisition (no % given) of ability to repay exemptions, streamlined uwing for high LTV ratios, exception based underwriting and loans secured by manufactured housing.
WHAT DOES THIS MEAN TO YOU?
Higher loan level price adjustments (LLPA HITS) to your pricing for any of the above. You may have already seen the difference in your pricing depending on the %’s each lender has but I assure you that all lenders will follow because those that do not will be adversely selected.
Flagstar has already put this in to bulk pricing. We have not put second home in our regular channels yet so if you got em lock em and we likely will not do it on investment property because we can sell them via a different source without the hits. No guarantees of course.
Flagstarmeno’s and updates – This weeks memo’s and updates
WHAT TO EXPECT W NEW FANNIE 11.0 AUS ROLLOUT
Effective THIS WEEKEND
Looks closer at revolving debt – higher % = less approvals
Allows higher ratios when student loans are cause of higher dti
Self Emp borrower now treated like variable income borr = More approvals
Apprsl Waiver not accepted when rents receivde on adu or subject property
THIS WEEK ONLY
25 BPS Pricing Special On All FHA Loans
Not included in price quote
Will add to pricing within 24 hours
Turn Times As of this morning – Looking Good!
Today’s Jackism My Daily inspirational Message
TIME TO RECREATIONALIZE WITH YOUR PARTNER
CLICK HERE FOR PDF TO DOWNLOAD TODAYS FILE
TO TOUCH OR NOT TO TOUCH – THAT TIS THE QUESTION
Leaderboard and Fundings See where you are ranking this month
DUE TO TIME OF DAY SENT REPORTS ARE 1 DAY BEHIND
