Where R Rates / MBS Market Update

WARS, BONDS & AUCTIONS

Sorry for delay folks. Spent the morning in the dentist chair. 3 hours! 

We have a lot happening today that can impact the markets from a technical trading perspective, auctions and global events galore.

We have a 500 billion dollar defense and infrastructure package going to vote today. Trump is speaking with Putin trying to negotiate a cease fire later today. Israel broke their cease fire by firing rockets at Gaza. 

We have a 1 PM bond auction today and the markets are preparing for what is happening at the Fed Meeting today and tomorrow with results being released tomorrow afternoon.

In the markets housing starts are up substantially at 11.2% month over month while at the same time building permits are down 1.2% from the previous month.

Lots of pushing and pulling from multiple directions so we will see where the markets land once all of the dust settles.

Stay tuned to see what happens next!

GREEN is GOOD for Rates – RED is BAD for Rates

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Product & Guideline Highlights Ad Mortgage Products

HOUSING HISTORY REDEFINED

One of the roles of an AE in my opinion is to study guidelines to see what can make or break a deal.

As I am learning our new Non-QM guides for AD Mortgage I came across a very cool little perk on our underwriting guides for Non-QM loans.

It relates to borrowers who have multiple financed properties. Think of your bigger investor borrowers where you love to do loans for but you dread verifying all of the histories on every one of their mortgages.

First off, it is cool that we allow unlimited amount of properties owned and financed by a borrower. No max 10 limit. They can have 300 if they want.

This is where it gets cool and also kind of separates us from the pack since we fund and securitize our own products. We do not sell them as a pass through.

When a borrower owns 4 or more properties the following applies:
You only need a mortgage history on the 3 largest investment properties which would include the subject property if doing a refinance. In addition to these three the primary residence housing history is required to be verified.

This means all of the other mortgages that may not be on credit do not need to be verified. The theory is if they are current on the their biggest properties then they are likely current on all of them. We still need to verify PITI amounts but the housing history you can get a pass on.

BUT WAIT! It get’s even better. Let’s say they do have a private mortgage which typically can require 12 months cancelled checks. If you have a private lender we only need 2 months of cancelled checks or bank statements showing the withdrawal plus a private VOR and a payoff that does not have more than 30 days of accrued interest and you are good to go.

This is a good one to get out to realtors and your investor clients. They will like this for sure.

Not a client of mine. Reply to this email and lets start the conversation.

Jackism of the Day

STRESS OR PASSION

Simon Senik had another one that absolutely made me think twice.

Working hard for something we don’t care about is called stress. Working hard for something we love is called passion.

Oh my, what a twist of fortunes when you live life with passion versus living a life of stress. I can tell you that many if not a majority in this business live a life full of stress because of what we do when we could be fulfilling our passion in the exact same line of work.

It is and always has been a mindset and purpose that defines how you approach your work. You can hate what you do on any given day and you can absolutely love what you do on any given day. It actually is a choice and one you have to make every morning that you wake up.

As you know for me. My passion is impacting lives and treating my industry as my mission field. How can I be a light to others that can then shine their own light and impact those that surround them. How I can be the ripple that expands beyond just myself. That is why I get up in the morning. That is why I do what I do.

I could do that as an AE in mortgage, a salesman selling cars, a greeter at Wal-Mart or dipping out ice cream at Dairy Queen. For me it is not about the job. It is about who I am, wherever I am, doing whatever I am doing.

That does not mean I don’t have stress. That just means when I begin to feel the stress hit me across the forehead then I must remember why I do what I do. It is not about the paycheck. It never has been. I wouldn’t do it without the paycheck but it has to be more than just money that wakes you up each morning.

Ask yourself today. Are you living a stress filled life or are you living a passion filled life. If it is stress then figure out your why and see how you can make what you do bigger than what you are paid to do.

What are you passionate about in life and how can you apply it to your day? You will still have the same issues you encounter every day at work. You will just handle them a lot better when you are doing them in the right frame of mind.