Where R Rates / MBS Market Update

NICE RATE MORNING

After a losing week last week we are looking pretty good out of the gates this morning.

I wish I could tell you why we are up 9 TO 16 BPS but there is no reports that came out the morning. 20 minutes ago we were up 28 to 31 BPS so keep an eye on the markets today.Todays improvement is likely due to the multiple global news and expectations for this week.

This week we have some key inflation numbers coming in, a lot of Fed Speakers posting their opinions and some big Treasury auctions comprising of 125 Billion that will show how demand is looking for bonds later this week. 

Fed Chair Powell will be testifying Tue and Wed so that should be interesting and will tell the tale of what Congress and the Fed will have as their talking points. The markets tend to react to where they see the economy, inflation and jobs are heading.

Some of the possible reasons for a little better rates today is hopes of less deficit spending, the lowering of energy costs and a slower than normal jobs market.

Stay tuned to see what happens and we will see you tomorrow!

GREEN is GOOD for Rates – RED is BAD for Rates

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Product & Guideline Highlights

USING FUTURE INCOME

You get that application and you are excited about increasing your pipeline until you get that dreaded statement. Oh, by the way, I am quitting my job and moving in the next month but I am working on a new job offer. Is that ok?

Here are a few need to knows when you get these questions or comments.

WHEN DO THEY HAVE TO START?
FANNIE states you cannot start the job earlier than 30 days prior to the note date and the main number you need to know is they must start within 90 days of the Note date.
FREDDIE is must start within 90 days of the Note date.
FHA you must start within 60 days of the mortgage closing date.
VA gives no guidance. This is scenario driven especially if they are in the military and moving stations.
USDA you must start within 60 days of Note date.

WHAT TYPE PAY MUST THEY HAVE?
FANNIE & FREDDIE – is salary or fixed income only.
FHA can be hourly or salary.
VA can be hourly or salary.
USDA can be hourly or salary.

WHAT ABOUT RESERVES?
If they are going to leave their current job prior to starting the new job you will also need reserves to cover bills and expenses for the period of time they will be out of employment. Pay attention to additional reserves required by AUS on top of this amount.

WHAT OFFER LETTER DO YOU NEED?
You need a fully executed offer which means the company offering the employment and the borrower accepting the employment must have signed. The tough part when you are 60 – 90 days out is that all contingencies of the offer letter must be completed before you can close the loan.

Although it can seem challenging to use an offer letter it can also be a blessing. Much less documentation is required and we will go off of the salary amount with reviewing YTD, previous stubs etc. We still need a two year history in similar line of work but the documentation and calculation is much easier.

Market this to clients and referral partners so they know they do have options.

Jackism of the Day

PERFECTION IS BORING

There is nothing worse in life than reaching the climax of where you want to get in an area of life.

The moment you reach or become the best or better than anyone else in an area of life you instantly lose.

I “try” to work out at the gym 5 days a week. I love going to the gym early in the morning because that is where I get my greatest boost in my day. I get to spend about 1 hour and 45 minutes with my Lord. For me it is not about the weights or the cardio, although it is an amazing plus. It is about the escape to just have uninterrupted time with my man upstairs.

As it relates to working out though. I have definitely seen a change in my body type. I lost 45 pounds, things don’t jiggle as much and I can walk up the stairs without having to stop for a rest. Let’s be clear, I still look like your normal 55 year old dad with a little bit of a gut, not impressive sitting next to the pool and a 12 year old could out run me. But compared to where I was I have seen a change.

One the things I do see in the gym though is some folks with amazing bodies. I mean they have perfected their body to have all the right shapes, muscle tones and look really good. Sometimes I look at these folks and pray I never get to where they are.

If you get to where they are then what else is there to do but to maintain it? I mean does it really get any better once you reached the summit? All they can do is lose from this point. The only way to stay where they are is to keep doing what they are doing while really not seeing a ton of improvement. OMG! Just shoot me.

At least each time I look in the mirror I am shaving off one millimeter of fat with lots of inches to go so I doubt I will ever hit their level and I am glad about that.

Dragos Roua said Perfection is boring. Getting better is where all the fun is.

I absolutely love getting better in different areas of my life. I never stop getting better with my walk with Christ, the intimacy in my marriage, my role as a father, son and brother, my skillset as an AE and my presence in the community to be a light where others may have a need.

That is exciting. That is fun. That is challenging. As I said in earlier Jackism’s. I grew up in a great family, neighborhood and environment. I was just always not good enough. I was not at the top of my game for any area of my life. I definitely did not peak in my high school years, nor my college years, nor my 20’s or 30’s.

It was not until I hit my 40’s that I found that drive to enjoy getting better every day. To find the joy of the journey. The peace de resistance. I found the passion to be a godly man, a good husband, a loving father, excelling at my job and a community influence.

The great news is that I am far far far from being at the top of my game in any of these areas. That is why I find it fun to take the next step, push the next button, climb the next mountain because that is where the fun is.

If you have reached the peak of who you are in an area of your life, I am sorry. It is not easy to maintain that. If you have not, then re-energize yourself and take the next step in who and where you want to be in life.

Nobody buys a nice new car to get to their destination. They buy the nice new car to enjoy the ride while they are getting there.

Forget being perfect or the best. The most fun you will ever have is the journey in getting there.