THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – Consumer Vs Producer
2.  PRODUCT HIGHLIGHT – Overcoming Approve Ineligible
3.  MARKETING – Pre-qual Marketing

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CONSUMER VS PRODUCER

Ok, so CPI (Consumer Price Index) and PPI (Producer Price Index) came out this week with what they call hot.

I am going to simplify this because it is highly important as it pertains to rates and to stock prices.

Simply, CPI (Consumer) is what a consumer is paying today vs what they paid last month as well as last year. It is a % difference. 

With PPI (Producer) it is what it cost the wholesale market to produce the goods that the consumer is buying.

Now the interesting part is they both came in hot which means oh snap that is a lot more expensive than it was before. Take out food and energy and it is not as bad but it is still pretty bad.

BUT, the Consumer Vs the Producer Index was different by a pretty good margin. The actual numbers really do not matter all that much for this article but more understanding why it is important.

If it is costing more to produce than it is for a consumer to purchase you would see the producers of goods increasing the costs and passing this on to the consumer. You do see this a bit but a pretty big margin where they are not passing it on fully to the consumer.

This means they are either reducing overhead or costs to keep prices consistent OR they are eating the cost within the profits. 

Something you can see that mortgage companies are doing with mortgages right now. We are reducing our margins drastically to keep buyers buying. Same thing for all products.

If they are eating the cost then that impacts stocks. Stocks go up and down partially based on the profits of a company. 

When stocks are hit harder that is good for bonds. 

So, as you can see everything impacts everything so it is good to at least understand how these two indexes can be seen as indicators of what companies are doing to manage the cost of inflation individually.

This is a great conversation piece to help others understand.

Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition

OVERCOMING APPROVE INELIGIBLE

You will notice from time to time you get an approve ineligible through Fannie Mae and the findings suggest verification of rent may help the approval.

Say what? Rent is not on the credit. Well, this is what you can do to possibly get an approve eligible and close the loan.

You will usually see this option on the following:
Primary Residence
Has 12 Month Rent History
One Borrower is 1^st Time Home Buyer
Rent is $300+ Per Month

You order a VOA (Verification of Asset W/ Rent Verification) from one of the following: Blend, Formfree, Finicity or Plaid. This is part of Day 1 Certainty.

The point is to help get more approve eligible for first time home buyers with lower scores that would not get an automated approve eligible.

When you order the VOA form the borrower provides access to the bank accounts that the rent is pulled from. It is very intuitive in what it looks for and puts 2 and 2 together to try and create a rental history from the bank accounts.

You can combine multiple accounts that match different amounts to get to the rental amount stated. Even if not remitted to a specific person the system looks for the amount vs the who paid to. The main option is if they pay cash or different amounts each month it does not work as well.

In addition, when you use the 12 month Verification of Asset you can also use the last 60 days of this report to verify your assets for the loan as well.

Combine these items with our work number you pull in our system you could provide rent, assets and income directly from 3^rd party vendors. Pretty cool.

We provide The Work Number for free on all loans internally and the VOA must be completed by you and input a report ID # that we pull in when AUS is run in our system.

Now you know……….

Marketing Ideas And Opportunites Little Things That Can Make A Big Impact

PRE-QUAL MARKETING

Due to the fact that we fully underwrite TBD properties as well as we allow locking TBD properties this is a great opportunity to follow up with your borrowers but more importantly to all your realtors even if they do not have a loan currently with you.
 
If you pre-qualify or realtors get pre-qual letters from their lenders they need to know any letter provided over a week or two ago is no longer valid especially if you approved for max financing.
 
We all know it can come down to less than 1% in dti that will make or break a deal.
 
Use this opportunity to make contact with your borrowers looking for homes as well as realtors who or relying on pre-qual letters sent to them whether by your or any lender.
 
A 3 week old pre-qual letter is of no value today.
 
Be the go to Loan Officer for your realtors and buyers by keeping them in the know. 

Turn Times As Of This Morning Lookin Good!