THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – All Eyes On Wednesday
2.  PRODUCT HIGHLIGHT – Large Deposits
3.  MARKETING – What To Do If Your Blessed

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ALL EYES ON WEDNESDAY

Regardless of what has happened in the market to move it a little here and a little there.
 
The FED speaks tomorrow at 1:30 PM EST and we are expecting to hear the 50 BPS increase which the market has pretty much allotted for.
 
But, the comments that come out of Chairman Powell tomorrow about balance sheet reduction as well as future rate increases will play a big part in where the mortgage market will be going.
 
The FED is in a very tough spot because they have said over and over again what they are going to do but the market is beginning to take care of itself in areas that they would not have to take as big a stance on hiking rates and reducing balance sheet and still get the same effect of lowering inflation.
 
Core inflation via the PCE (Consumer Expenditures) was only up .3% the last 2 months. At that rate it is a core inflation of 3.6% which is manageable vs 8, 9 or 12% inflation which is what they are trying to raise rates to control.
 
The reason is due to high food and energy costs. The costs of oil which we must have to function is doing the same thing as hiking rates would do.
 
People are paying more for fuel and food which means buying less goods and services which allows the supply chain to catch up which reduces the cost to purchase these items.
 
Raising rates does the same thing but it slows down the economy much faster but oil and food is already doing that.
 
Core inflation excludes energy and food since those are required to live so inflation is much higher but Core Inflation which is what we choose to spend money on is the 3.6% I stated earlier.
 
Many many many other factors apply but the dual mandate of the FED is control inflation and maximum employment and final rule is keeping the markets calm.
 
Good luck with that : )

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LARGE DEPOSITS – RUH ROH

We are uncovering a new type borrower which we all have realized are not as easy as what we have become accustomed to over the past couple years.
 
An emerging new issue we are finding on a regular basis is large deposits going in to accounts to cover down payment and closing costs or just a large deposit in general.
 
Make sure you are looking at your asset statements before sending up and getting the information to support these deposits before uploading.
 
Here are the rules for large deposits.
 
CONVENTIONAL, HELOC, NON-AGENCY LOANS
All deposits that exceed 50% of the total monthly qualifying income, must be documented if the funds are needed for the transaction, closing costs, down payment or reserves. If not needed, when applicable, the unverified deposit can be backed out of the asset account. However, the underwriter is still responsible to ensure that the source of the unverified deposit was not a result of borrowed funds. If it is, the borrower must be qualified with the liability associated to the borrowed funds.
FHA
All newly open asset accounts or individual deposits of more than 1% of the Adjusted Value (per 4000.1), must be sourced.   Underwriter must also verify no new debts incurred as a result of any large deposits.
USDA
All deposits regardless of amount must be documented due to household income requirements.
VA
VA does not publish guidelines related to large deposits.  Underwriters must use their due diligence to determine if any deposits appear to be uncommon or atypical or could appear to be due to undisclosed new debt. 

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WHAT TO DO IF YOUR BLESSED

As a man who believes everything my wife and I have is a blessing from the Lord I asked the question why? Don’t worry this is not a sermon but just a truth He showed me this morning.
 
I do not think He magically blessed me over others but it seems each time I am obedient in character, discipline, consistency, purpose and keeping Him top of mind for every decision I make that the end results come out better than if I relied on my own self. Pretty cool how that works.
 
So, what do you do with the resources that you have and what are they?
 
For some it is financial resources, for others it is relational resources, for others it is influence through a large customer base, a large family, a community influence you may be over, a social networking influence such as this morning update.
 
But why and what to do with it?
 
The truth I learned today is that when I am blessed in whatever area the purpose of that blessing is to expand the purpose you have before you.
 
What light or purpose or mission have you been given that you can do something with based on one of the expanding resources I mentioned above or one that you have in your mind right now.
 
Did you ever think that you may be blessed in an area of your life that most are not to do something with it vs just saying I am blessed because of what I have done and I will keep that to myself. Or do you think you can use it for good. Use it for a special purpose.
 
To whom much has been given. Much is expected.
 
This is not just about money. This is about any resource you have that can impact the lives of others.
 
I just sent this message to the morning update influence I have to 1,300 people this morning to make the impact that your resources are not about you. Your resources are about what you can do with them.
 
This was my purpose for one of the blessings I have been given.
 
What resource and what message can you send out to today that when the day is done you will hear the words “Well done my good and faithful servant” regardless of who or what you are serving.

Turn Times As Of This Morning Lookin Good!