THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – MBS Last Week
2.  PRODUCT HIGHLIGHT – Perks For Vets
3.  MARKETING – What Is Your House Built On?

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MBS LAST WEEK

Well folks, we finally have officially moved in to monitoring the 4.5% coupon. 

We held out as long as we could. Basically, that means your rates are in the 5’s on conv to make any money and investors are purchasing that coupon at a higher amount than the 4% coupon. 

We have coupons as high as 6.125% being traded just in case you are curious which is tapping on 7%. Ruh roh! No, that does not mean rates are going to 7%, that just means we have rates in that area now.

Believe it or not we only lost 8 BPS last week. We made up some good ground but lost it again later in the week. We crossed over a certain technical barrier so that is why we are pricing the 4.5% coupon now.

BUT, on the govt side we lost 105 bps last week. If you recall conv was losing at a faster pace than govy but seems govy did not want to be left behind so it played catchup last week.

So, conv is worse by $80 per 100K in loan amount and govt is worse by $1,050 in premium per 100K in loan amount.

We will see what the morning brings with the weekend activity.
I will be sending out my morning MBS text update this morning at 9:30 CST now that I am back in town. Sign up above to see what’s happening.

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

VA PERKS WITH VETS

Lucy asked me this question earlier this week and it is always a good reminder when you are structuring a deal that you have options when it comes to VA.

As you know most products have maximum seller paid financing concessions. VA allows the seller to pay as much as the seller is willing to pay on a VA loan in the form of normal closing costs. 

So, if a Veteran has 10% in closing costs which of course is highly unlikely then the seller can pay them. The thought process is that anything good for the Veteran is good for VA.

BUT, most do not know that you can also have up to 4% in non-financing concessions. This 4% for example can go towards paying off a credit card or car or any debt so that the borrower can qualify. 

So, if you have a 400K VA loan the seller can pay off 16K of a VA borrowers debt for whatever reason. This also includes gifts to the Veteran like tv’s, furniture etc.

Pretty cool huh! 

Fyi, a couple possible closing cost items do count towards the 4%. If they were to pay the VA Funding Fee or any discount points in excess of 2%. So, if you had 5 discount points 3 of those would go towards the 4% max rule.

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

WHAT IS YOUR HOUSE BUILT ON?

Ok, so we are going DEEP this morning. You better put on your Plato, Aristotle or Socrates glasses on this morning.

So, it was 3 AM and I could not sleep so as I do every time I pull out my mini ipad next to my bed and open up Proverbs. Don’t worry, this applies no matter your belief.

I went to the day of the month that matched the chapter which was the 24th. Yesterday : ) 

It says:
By Wisdom a house is built.
And through understanding it is established.
Through knowledge it’s rooms are filled.
With rare and beautiful treasures.

Step One is that anything in your life you can classify as a house. So, your walk with your creator, your business, your job, your marriage, your parenthood, your church, your sports teams. Anything can be classified as a house that is built.

Terms to understand:
Learning – One time use of information gained.
Knowledge – Information learned & remembered for life change.
Wisdom – The ability to act on knowledge.
Understanding – The ability to teach others wisdom that works.

So, this is the Flagstar Jack version of Proverbs 24 section.

In order to build anything in life you must use truths that you have learned in life as a foundation  to what you want to accomplish and stick to the wisdom found in those truths. They must be non-negotiable.

Then and only then through the truths of wisdom as your foundation you must be able to teach those that are part of what you are trying to accomplish these same truths and they buy in to and execute these truths of wisdom and are willing to follow and believe in what you are trying to accomplish.

The knowledge is the systems and processes that are put in place that guide others to understand the truths needed to complete whatever the goal is of what you are trying to accomplish.

The end results is rare and beautiful treasures. This is the best part of it all.

When you do things the right way based on solid foundational truths and you teach others the way to do it the right way and you provide a path or system to achieve success then beautiful and rare results will come about.

I have taken short cuts, left out core foundations, went the fast route vs the right route in many areas of my life throughout my lifetime and the treasures received at the end were not what they could have been.

Rather than laying awake at night thinking about what could be or should be make sure you go back to the foundations of what you know in every area of your life and make the changes that will result in beautiful and rare treasures.

Turn Times As Of This Morning Lookin Good!