THIS MORNINGS QUICK LOOK
- TOUR DE MTG FINANCE – MBS Update
- PRODUCT HIGHLIGHT – Float Down Renegotiation Policy
- MARKETING – Lock Now While Looking
START EACH MORNING WITH EASY TO READ MBS UPDATE
TEXT “I’M IN” TO 251-428-1564 – IT’S FREE
Tour De Mortgage Finance Learn Something New Everyday About Your Industry
MBS MARKET UPDATE
In case you were in a cave somewhere you will notice that we gained another 55 bps yesterday.
That is 160 bps better than the Friday opening bell or $1,600 in yield for every 100k in loan size.
We have a HUGE window to the upside that we can go until we hit the next fibonacci level. As in we are currently at 101.61 and the next technical ceiling is 103.2 which is double where we are now and have not seen this level since January 5th.
BUT, I strongly caution you that technicals do play a role in how the markets react but the war will play a much larger role.
The impact of the state of union last night as well as some of the financial markets, how much the FEDs raise short term rates and if the war escalates will determine what rates do due to the demand it will put on the flight to safety of the US bond market and more specifically the treasuries and we are the closest safety net to treasuries that you can get.
I know there was a massive locking frenzy yesterday and honestly I think it was a good move but that does not mean we will not improve more but you HAVE to watch the markets.
Text “I’m In” to 251-428-1564 for free MBS updates daily.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
FLOAT DOWN RENEGOTIATION POLICY
Due to all of the chaos in the markets it is important to understand how our float down options work.
In order to float down the loan must be in either an approved with conditions or clear to close status.
If in an approved with conditions status the new interest rate must be lowered by .25% to qualify.
If in a clear to close status the interest rate must be lowered by .125%.
The new lock will be good for 30 days and you can get current market minus .500 hit to current market.
You can only do 1 float down per loan.
The price on the new lock cannot exceed current price on original loan. For example, you cannot lower the rate by .25 and get a better yield to yourself.
All float downs must be done directly with the marketing desk using option 2.
Marketing Ideas And Opportunites Little Things That Can Make A Big Impact
IN THE MOMENT MARKETING
Ok, so let’s be clear. You are the go to professional in your industry for everyone in your circle of influence.
If you are not addressing the situation of the war and how it impacts rates and the sadness of what is happening but the impact it can have for those interested in refinancing or deciding not to wait to make an offer then I encourage you to think about putting some good information out to your clients and prospects.
In addition, as a reminder Flagstar Bank offers a lock and look program where you can lock a TBD property for 60 – 90 days and Flagstar also allows you to submit TBD properties to underwriting and receive a full approval.
Have your clients make offers with fully underwritten loans and all you need is purchase agreement, title and appraisal and you can close.
Success is found in the details. Do not miss out on making a difference in your clients lives.
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 |
