Where R Rates / MBS Market Update

POWELL’S BIG TALK TODAY

We are getting hit with a bit of red this morning as we start today in anticipation of Fed Chair Powell’s testimony. The uncertainty right before a big news day many times results in investors backing off to see what happens.

If you are in to watching Senate Committees on Monetary Policy and what Fed Chair Powell will testify to today then you can watch it from this link at 10 AM EST. Right now : ) 
LIVE FED CHAIR POWELL TESTIMONY TODAY LINK

On top of Fed Powell’s testimony we have three Fed Speakers.

Another issue we are seeing is Gold went up abnormally which usually happens with uncertainty as well as oil increase by 4 dollars a barrel from $70 to $74 quickly which inflationary markets do not like. One of the big issues is debt rearing it’s ugly head again and being a topic of conversation which of course is the question of how can our economy sustain govt debt costs.

All of the global and domestic news coupled with no economic reports coming out today makes for a wait and see or a guessing at what investors will do kind of day.

We will see where the day takes us my friends. Keep doing you and the market will take care of itself.

GREEN is GOOD for Rates – RED is BAD for Rates

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Product & Guideline Highlights

GET MORE APPROVE’S

It seems I am hearing from a lot of folks that approve eligible findings are getting more difficult to obtain. I personally think there is more opportunity to get approve findings than in the past although it also comes down to the borrower.

FHA allows you to use positive rent history to overcome refer findings and receive approve findings which I have written about before.

Today, let’s chat about Fannie’s positive rent history options to try and maintain or go from a refer to approve findings by adding rent history to the pricing engine.

HERE IS HOW IT WORKS
First, make sure you have the rent payment on your 1003. A lot of people leave this blank. It is in Section 1 on the borrower information section of the 1003 or wherever it may be in your LOS.

Next, you identify how you are going to show it.
Option 1 is to have it added to the credit report or it is already on the credit report.
Option 2 is if not on credit report then use an asset verification report to add to the AUS findings. Make sure you order at least a 12 month verification report and of course make sure the rent will show on a borrowers bank statements otherwise you may be wasting your time.

There are multiple authorized suppliers of asset reports that you can use.
Here is a list of Fannie’s, although not all lenders are set up to reissue all of them in their system.
ASSET VERIFICATION SUPPLIER LIST

Once you run findings make sure you review to see if AUS caught the rent history and if it acknowledges the presence of it. If it does then it will reference one of the following:

SUCCESS (MSG ID 3593) – DU used rent payment history found which resulted in an approve underwriting recommendation.
NO IMPACT (MSG ID 3593) – DU observed the borrower’s rent history but the evaluation of history did not improve the underwriting recommendation.
UNSUCCESSFUL (MSG ID 3589) – DU could not evaluate the borrower’s rent history using the asset verification or credit report provided.

WALA! There you have it. A great opportunity to close more loans and get more approves. All you need to do now is act on it. Which a majority of you will not. For those that do welcome to closing more loans. Market this to your referral partners and potential clients to make a difference in those around you today.

Jackism of the Day

YOUR TESTIMONY

What is your testimony? If I were to ask you to come to a meeting I am having with some friends and give your testimony. What would you say?

How would you prepare or decide what is important enough in your life that it is worthy of telling others about it?

I was asked to give my testimony this coming Sunday at one of our church’s men’s groups that meets. The leader of that group which is likely reading this Jackism this morning is someone I deeply respect for his leadership and his personal walk in life. I would be much more interested in learning more about him and his story and his testimony than to listen to myself.

I was a youth pastor for 15 years and I have spoken many times on financial topics, I have done credit seminars and budgeting seminars and led business associations and spoke at company meetings. I love the stage and the microphone. It is fun and enjoyable to get up and share a message that you believe in with others. Heck, I write a piece of my testimony just about every single morning in this Jackism.

I am looking forward to this Sunday but I have absolutely no clue as to what I want to share. What part of my story is worthy of sharing with others where it may make the slightest impact in someone else’s story.

As we get older each year our testimony gets longer because our life experiences get more involved. Most testimonies are comprised of hardships and the story of redemption and overcoming and triumph. After all, what movie or documentary or biography does not consist of these things from someone’s life. Otherwise, there would not be a movie or documentary or biography on that person.

If you were asked to give your testimony. What in your life is worthy of a movie, a documentary or a book about what you have gone through, how you overcame it or did not overcome it and the end results of this event or time in your life?

I love sharing lessons and truths that I have learned in my life. How I experienced something and grew from it and my life changed because of it for the better.

My major part of my testimony is my walk with Christ, my marriage, my role as a father and son, my mission field which is the mortgage industry and to be honest you who are reading this right now. 

Do you know why I do this morning update each day? Why I write about the MBS market and let you know what is happening so you can be more knowledgeable with your clients, lock when it is the right time to lock. To know your products and what you can do with guidelines each day? Then why I write this Jackism and put myself and my life out there each day?

I do it for one reason. I do it in the hopes that you will see the light of Christ in some manner that you may not have before and it leads you to a better life and whether now or some time down the road to a better walk with Him. Yep, that’s it. Of the 4,500 people this goes to each day and the 2,000 that open it about 80% of you are not my clients. I gain absolutely nothing financially or business wise from it nor will I ever.

That’s not my why for this morning update. It does bring in business but nothing close to being worth the time I spend doing it each day.

This I hope will be spoken of in my eulogy. Not the numbers I reached or where I was on the leaderboard. The greatest gift you can give me is when you let me know you copied and pasted something I wrote whether Jackism, guidelines or MBS and you shared it with others and even better when you walk away better than when you came this morning and I never know about it.

My hope and my prayer is that you are part of my testimony in whatever way that is.

What is your story you want to share with others? What do you want to be remembered by? Go, share, be and do you because you are the best version of you this world will ever have.