THIS MORNINGS QUICK LOOK
- TOUR DE MTG FINANCE – Hike Hike Hike
- PRODUCT HIGHLIGHT – TBD And Lock And Look
- MARKETING – Learning – Knowledge – Wisdom – Understanding
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Tour De Mortgage Finance Learn Something New Everyday About Your Industry
HIKE HIKE HIKE
Oh my folks. Ask me the question “Jack, what is going to happen?” and my answer with a big ole smile is I have no idea and neither does anyone else.
In case you did not know the reason for the worsening in rates over the last two days which was 72 bps worse in the 4% conventional coupon and 62 bps worse in govy loans.
You can thank the folks with the FED opening up and talking to the markets and saying hey rather than last week saying we are going to have a total of 7 rate hikes of .25 per hike for a total 175 bps by end of year lets actually just do 12 rate hikes to the tune of 300 bps.
Sure, that is a great idea! Honestly, those guys and gals are much smarter than I am and they know exactly what their comments will do to the markets and they do it strictly by design and very well thought out or I cannot imagine that is not the case.
So here is the dealio. Sure, it is bad for short term rates like credit cards, car loans, heloc’s etc but as I have said before it does not control mortgage rates but it does impact them.
We have gone back 40 years and you know what happens after the FED hikes rates quickly over a short period of time we typically enter a form of recession as they slow down the economy very fast which as we all know is good for mortgage rates.
Remember the worse the economy the better the rates BUT we must put inflation in to the equation because inflation is horrible for mortgage rates.
In the end, nobody knows what will happen but for the past 40 years when the FED hikes rates quickly it usually ends in lower mortgage rates.
But, do not get excited as that takes time to take it’s course but if you can survive the tough times like we have had so many times then you will be here again for the good times down the road.
In the end, same day different year with likely a similar ending.
Not to make light of the subject but we have ups and we have downs so always prepare for the downs during the ups and you can be here for the next round.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
TBD AND LOCK AND LOOK
It almost baffles me the number of times I put this out there and while I was visiting clients this week 90% of them said NO WAY, I NEED THAT!
So, just as a reminder since my other two articles are lengthy you can do a long term lock when a borrower does not have a property.
We call it lock and look. As a broker or correspondent and correspondents have longer term option if they want to pay upfront but for no fee you can do a minimum 60 day lock on a TBD property and up to 90.
Then you can technically do a 150 day lock period by taking the 90 day TBD lock and pricing in the first extension of 30 days for 30 bps and the second 30 day extension to the tune of 45 bps.
So a 150 day lock is current 90 day market lock then figure in 75 bps of extensions to get you to 150 days.
Also, we are one of the very few lenders who will fully underwrite a TBD property. The best guarantee you can give to realtors to get an offer accepted is a fully underwritten loan only needing title, appraisal and purchase agreement.
BOOM! Flagstar is here for you like nobody else and duh you get me as a rep.
Marketing Ideas And Opportunites Little Things That Can Make A Big Impact
LEARNING, KNOWLEDGE, WISDOM, UNDERSTANDING
Those are 4 words that can have huge meaning and to understand them in the order that they are listed could really change your life.
As you know I love my scripture and a commentator for Proverbs gave the greatest explanation that pertains to everyday life that I had to share.
LEARNING
This is the simple acquisition of information for a single purpose. I need the answer now, thank you very much, I have used it and I move on. For example, Jack how long to do an FHA loan after a foreclosure. Get it, solve your problem and go.
KNOWLEDGE
Now, knowledge is a bit different. Lets say you advertise FHA loans, you cater to lower end credit, you know manual underwrites and you live in this world everyday. In this case it is more than just using the information one time and moving on but instead it is moving it from short term memory to long term memory. Or in the mortgage world it is someone who specializes in FHA loans vs a 95% Conv originator as it pertains to FHA foreclosures.
WISDOM
Now Wisdom, well that is a whole notha game. You see, Wisdom is the ability to produce action based on the knowledge that you have on a subject matter that you learned. Otherwise stated, it is the ability to make appropriate and compassionate actions, based upon your knowledge. Oh snap! Now that is DEEP! In other words you convert 25% more borrowers in to the proper loan because you have used the information you learned and made it knowledge that you fully get and therefore produce wisdom on how to solve situations.
UNDERSTANDING
This is where the rubber meets the road and you may think understanding comes after wisdom? Say what? Yep, understanding is a complete knowledge of any subject matter with a responsibility to pass on that knowledge. You see, it is not until someone has learned a subject matter, retained that information as long term knowledge and then used it wisely in areas of their life and then hereby teach it to others.
Understanding is the ultimate gift you can give to your clients, your community, your employees or fellow workers in every area of your life. When you have been given a gift of understanding and do not use it for the greater good you are missing out on an important part of one’s life purpose.
Two morals of the story. It is better to give than to receive and the second one is to hone your craft to be the best you can be by learning what you need to gain knowledge on then become wise in it so that you can help others understand it the same as you.
Yep, day in and day out I will continue to say go make a difference in the lives of those you encounter. If not, what the heck are you doing?
Why look something up when you can write others and tell them about it…
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 |
