THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – Markets Update
2.  PRODUCT HIGHLIGHT – Non-Veteran VA Borrowers
3.  MARKETING – Do The Quest

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MARKETS UPDATE

As I stated yesterday President Biden was going to speak yesterday on inflation which he did. Here is a you tube link I found if you would like to watch. Biden Speech. 

Essentially the President said it is COVID, Supply and Ukraine and Russia war. No real surprises or big announcement. Then he went in to democratic vs republican plans. Typical political speech we have all grown so accustomed to. Regardless of what side you stand on we will be dealing with the comments that both sides fight for during the mid-term elections. Let the fun begin : ) 

This morning CPI (Consumer Price Index) comes out and will be a big indicator of what will happen to rates this morning. This is one of the best indicators of inflation. Then Thursday we have the PPI (Producer Price Index) coming out. This will give us the information on how much it is costing to produce goods and how much of that consumers are having to pay for.

We are on a decent ride of hope for hitting the top of inflation and this index will help guide us to where we are this month.

I will let you know how it turns out when I send out my MBS text this morning. To sign up see above text signup information.

We ended the day up yesterday 13 bps but we lost 18 bps late in the day.

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

NON-VETERAN VA BORROWERS

From time to time you encounter a VA loan where you have a military member and a non-military and non-spouse co-borrower.

Most people assume you cannot do the loan as we all know you can do a qualified military member plus their spouse but not if they are not married or are just a person living with them.

This can be done but this is how it works.

The VA guarantees 25% of a Veterans loan to the end investor and GNMA. This is is similar to mortgage insurance companies that insure the amount above 80% of a conventional loan when exceeding the 80% loan to value.

In order to be able to use a non-military and non-spouse borrower you simply put 12.5% down payment. Since the non-military borrower and the military member are 50/50 on the loan then the VA sees this as they will insure 50% of the Veterans 25% guaranty.

Thus they insure the Veterans 12.5% and the non-military member brings their 12.5% down payment in lieu of the VA guaranty.

Bottom line is you can do 87.5% LTV loan assuming full entitlement is available.

As a reminder Flagstar does 100% financing on purchase and cash out loans up to 4 million so this could be a great deal vs jumbo if you run in to this scenario or really any deal.

Lucy wanted me to remind you that in these scenarios once we underwrite the loan the loan must go to the VA local Regional Loan Center for underwrite as well. In addition, for Flagstar the Veteran needs to be exempt from the funding fee OR you are able to draw your own docs due to our system cannot split the Funding Fee if not exempt. It is a system limitation and not an overlay.

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

DO THE QUEST

As you know Lucy and I are movie buffs and I learn a lot of life inspirations through movies.

I was watching a movie yesterday about a girl who lived a sheltered life and met a boy that was more worldly and the point of the movie was to take her out of her well worn habits and him out of a past with a tragedy and together find peace with one another. This was accomplished by going on different adventures every time they went out.

The challenge then I made for myself and I challenge you to is to think about doing a quest.

A quest of the little things you have never done but always wanted to. Not a bucket list where you list the big things in life but a simple life quest that could be accomplished without much effort.

You have 3 options in this concept or many more I suppose but here are my three.
#1 – Sit down. Write a list of all the things you have never done or not done in a long time and then start doing them.
For Me Locally It Would Be
Do the sunset cruise w my wife.
Visit the new local zoo.
Go Carts & Mini Golf date with Misty.
Take surfing lesson from a local.
Go Parasailing (Never been)
Eat at restaurant I have never been to
Etc…………………

#2 – Try the “yes” to almost everything type day. Go out and if you are given an option then the answer is yes let’s do it. Kind of like the yes movie that came out but for you. You will be amazed at what you end up doing.

#3 – As you go through your day or week or lets say a weekend just drive around town and when you see something stop and do it. This could be with kids or no kids but just do it. Misty (my wife) and not Lucy (My Imaginary Friend I Created For My Articles) regularly take off on a Friday in our jeep and we flip a coin every time we come to a main intersection. Heads or tails decides the turns. We end up where we end up. Get a hotel at the end of the day and we use trip advisor to see what’s happening near us and visit whatever we come across. 

Folks, if all you do is work you are wasting your life. We complained for the last 2 years we had no life due to volume and now we complain we have to constantly work because our volume is way down.

Work is not the problem. We are. Now get out and do something for yourself or your family. It will be much more rewarding than another 10 hour work day : )

Turn Times As Of This Morning Lookin Good!