THIS MORNINGS QUICK LOOK
- TOUR DE MTG FINANCE – Potential Volatility Today
- PRODUCT HIGHLIGHT – FHA Resale Rules
- MARKETING – Best Time Spent
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POTENTIAL VOLATILITY TODAY
For the last 6 months we have really watched inflation get crazy and the FED’s comments causing a bit of turbulence when they do speak. We are adding some players to the field now.
Wednesday we have the CPI (Consumer Price Index) which gives us what consumers are paying for the similar basket of goods they bought last month and last year which is a key inflation indicator.
But, Biden is going to give a speech today on his thoughts on inflation and what he plans to do about it.
As we get in to mid term elections the GOP will be using inflation heavily to try and take some seats from the democrats and of course the democrats will be heavily using employment numbers and so forth to support a strong economy.
Lucy and I keep our opinions to ourselves on the politics front because honestly I really do not care too much what you think and I really do not care that much what I think so I will just give the facts on what impacts the markets.
When Biden speaks it is likely going to cause some volatility in the markets as I am sure he will make some strong statements which always upsets markets one way or the other regardless of what side of the isle you are on. I am not sure what time he is speaking but I know it is today so make sure you monitor for any large potential changes.
Yesterday we gained 60 bps which was a very nice gain after Fridays losses.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
FHA RESALE RULES
Due to the large increase in FHA volume I wanted to send out a reminder on guidelines as it pertains to how long a seller must own the property before selling to your new borrower.
You have two important time lines.
#1 – Transfer of title date from when seller purchased plus 90 days.
#2 – Transfer of title date from when seller purchased plus 180 days.
You cannot have a purchase agreement dated within 90 days from the time a seller purchased the property to the new purchase agreement date. IF, you do this accidently and get a case number assignment we will allow you to cancel the case number and wait until 90 days have elapsed and get a BRAND NEW purchase agreement signed. Not an amendment but new agreement. The reason is the loan is completely dead at this point and it does not harm to wait the proper timeline and restart.
Fyi, one of the many exceptions to this is if they inherit the property the 90 days can be waived. The other exceptions have to do with who owned it. Most do not apply and if an individual seller it will never apply except for inheritance.
The 180 days is a bit trickier and very important to understand.
Reminder, it is not from seller acquisition to case number assignment but from seller acquisition to purchase agreement date.
If you mess this up then we will not allow you to write a new contract nor amendment to get around the 180 day rule.
The rule is if you sell your home for double what you paid for it within 180 days then two appraisals are required and the 2nd appraisal cannot be paid for by the buyer.
So, say the case number is 185 days from seller acquisition. You upload a purchase agreement dated 175 days from seller acquisition and it is double what they paid for it. The case number is over 180 but we have proof the purchase agreement is not. We will require two appraisals.
Why Lucy asked? The reason is because that would be trying to get around the intent of the rule and if we have proof of this then we cannot with integrity and character forget the initial dates. Neither should you.
Bottom line – When taking a new FHA contract make sure you check seller acquisition date and advise all parties if you see any potential issues.
Marketing Ideas And Opportunites Little Things That Can Make A Big Impact
BEST TIME SPENT
If I were to ask you where does a huge majority of your business come from?
Is it cold calling, advertising, social media, referrals etc?
Each business model is set up differently but most of my truly successful clients I know a majority of their business comes from referrals.
That could be prior customers, real estate agents, community leaders, financial advisors and a multitude of others.
Now, let me ask you this question?
How much time do you spend on the areas that you receive most of your business?
Do you spend 70% of your prospecting time on social media and marketing efforts that brings you 30% of your business.
OR
Do you spend 70% of your prospecting time on the area that brings you 70% of your business? For example referrals.
If referrals is your number one source of business then referrals should be where you are spending a majority of your time in prospecting.
It will never not be true. 80% of your business comes from 20% of what you do or 20% of your sources.
Yet, for many we do not spend 80% of our time taking care of the 20% that makes our business.
Give yourself a quick double check to make sure you are investing in the right sources.
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 |
