THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – Late Day Trading Drop
2.  PRODUCT HIGHLIGHT – Re-Casting A Loan
3.  MARKETING – Trust Is Key

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Tour De Mortgage Finance Learn Something New Everyday About Your Industry

LATE DAY TRADING DROP

Well folks, this is very strange for me because I know WHAT happened but I have no idea WHY it happened. 

The bond market closes at 5 PM EST. At 4:38 PM EST yesterday we were down 3 BPS from when rates came out at 10:30 AM EST time and we were down 33 BPS on the day and we knew why. The FED yapping is the main reason and then pending inflation numbers coming in this week.

In the last 22 minutes of trading we lost 42 more BPS on the conv 4% coupon which is now under water which means if this sticks we go to the 4.5% coupon. Lets hope it does not stick but if it does we are going in to a completely new coupon. The stock market also dropped like crazy at 400+ to the negative on the day during the last part of trading.

Govt 4% coupon only lost 45 BPS today so yet again make sure you are comparing govt vs conventional pricing when quoting clients. 

Let’s hope overnight trading recoups some of this hit and we will know in just a little bit.

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Wow! This market has gone bananas.

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

RECASTING A LOAN

You likely get the question all the time that your borrower is buying a house and need to buy before they sell. 

What are the rules if you put a chunk of money down on their new loan. Can they recast (Re-Amortize)? Recasting means putting a bunch down then get a lower payment based on reduced balance without refinancing.

Why yes you can.
CLICK HERE FOR FLAGSTAR Q&A
RE-AMORITIZATION FORM

HERE ARE SOME HIGHLIGHTS
Minimum to recast is $10,000
Cost to recast is $300
Must be conventional loan
No can do on govt loans
No recent delinquency
Processing times take 45 – 90 days
No limit to number of recasts allowed
Recast does not remove PMI
Must request PMI removal separately

Use this to advise your realtors.

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

TRUST IS KEY

Next week Lucy (my imaginary friend I write with) and I will be attending the Flagstar Bank National Sales Meeting. 

I was chosen to be on a panel to present in front of all of my peers and was given the main question of “How do you get the first loan from a new client?”

This made me think of you guys and how do you answer a similar question of how do you get a borrower to commit to you to put their largest investment in a lifetime in your hands.

I actually put a lot of thought behind this and the word that came to my mind was TRUST.

How do I convince you to TRUST me with your livelihood, your pipeline, your referral sources and your reputation? That is a big deal and should be of upmost importance and it certainly should not be based on whether I have a niche product or the absolute best pricing of anyone. Many do this but it is something to think about.

Of course, I must be competitive but doesn’t competence, consistency, camaraderie, caring about your career come in to play? This is your livelihood and what you pay your bills with and provide for your families with and you are trusting that to the best price or fastest turn time?

It is easy to say yes but deep down think of the overall impact this has on your quality of life.

Instead, you should fully 100% trust your AE and your lender with your future AND the future of your client.

Do your clients know to TRUST you? Have you given them reason to put their livelihood, their family, their finances and their trust in you?

If not, figure out how you can because although they may say they want the best rate, down deep they want to know they can trust you with the biggest investment of their lifetime and know that they can come to you with their questions now and in the future.

Figure out what the looks like for you and your business will grow.

Turn Times As Of This Morning Lookin Good!