THIS MORNINGS QUICK LOOK
- TOUR DE MTG FINANCE – A Little MBS Insight
- PRODUCT HIGHLIGHT – Self-Employment News
- MARKETING – Selling Problems With A Solution
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Tour De Mortgage Finance Learn Something New Everyday About Your Industry
A LITTLE MORE INSIGHT
If it makes you feel any better the current mortgage rate in Russia is 15.3% and refinances have been abolished as they cannot do them.
The typical response to Geopolitical Events in the past have always reduced the FED rate in order to bring normality back to the markets.
In 1991 during Desert Storm Fed Funds Rate went down 300 bps from 7% to 3%.
After 9/11 the Fed Funds rate went down 200 bps from 3.75% to 1.75%.
During the Russia/Ukraine war we are currently are at 0% with unprecedented stimulus due to Covid and have to raise Fed Fund Rate in order to control inflation.
This is the reason you are seeing them not raise it as fast as expected. Typically in times like this they lower it and here they are having to raise it.
Just another talking point when clients ask you questions.
Hope this helps!
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
SELF-EMPLOYMENT UPDATE
After yesterday mornings Loan Beam article I wanted to make sure I was clear on SE income.
On conventional loans we do subtract meals and expenses from the income we use on the K-1 whether net income or distributions.
The reason you subtract meals and expenses which is usually under other expenses statement 3 I believe is that you can only write-off 50% of meals and expenses. So if your write-off was $5,000 then you actually spent $10,000 which is why you get hit for another $5,000 because they know you spent it.
On FHA, VA and USDA I did confirm you do not get hit for the extra expense. In addition, as an exception we can now add back write-off’s of use of home office in the home. This just came out where we can do this. With all of the folks working out of the house this may be a good addition for borrowers once we get in to the 2021 taxes.
Marketing Ideas And Opportunites Little Things That Can Make A Big Impact
SELL THE PROBLEM THEN GIVE THE SOLUTION
In your marketing and in your selling or whatever you are doing I have tried to hammer it home that you must address the problem people have with a solution in order to get their attention.
They do not care about your service or your products. They care about you solving their problem.
Problems must be:
BIG
PERSONAL
FAMILIAR
VISUAL
You figure out what those four words mean as it relates to how you are marketing and selling your clients and you will begin to appeal to what a borrower is looking for.
Also, make sure your solution is not a nicety but actually a need. Their is a big difference between those two words.
The person who can best explain a clients problem is in the best position to own the solution.
Things that make you go hmmmmm.
Turn Times As Of This Morning Lookin Good!
| TURN TIMES | Purchase | Refinance |
| Business days | business days | |
| Conv Non-MI | 1 | 1 |
| Conv MI | 1 | 1 |
| FHA/VA | 1 | 1 |
| USDA | 1 | 1 |
| Jumbo | 1 | 1 |
| Conditions | 1 | 1 |
