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THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – Rate Hope
2.  PRODUCT HIGHLIGHT – Adapt and Reach Out
3.  MARKETING – Arm Buying Power Marketing

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Tour De Mortgage Finance Learn Something New Everyday About Your Industry

RATE HOPE

We had a great rebound yesterday in the 3.5% coupon of 42 bps gain which the previous day we went under par which means we brought it to a point where the 3.5% coupon was not paying anything to be able to sell to investors and still make a profit.

There is talk from certain commentators of the hope that we are searching for the bottom of the market also known as where we will stop increasing long term mortgage rates and either gain a little ground or maintain this rate environment.

Nobody has that crystal ball but some of the indicators and the market moving news gives hope to being near the bottom of the market.

Short term rates will be increasing at a very quick pace for car loans, heloc’s, credit cards, personal loans etc but long term rates like mortgages are not increasing near as fast and hope to have already built in to the market as the markets are exhausted from the FED speaking and war in Ukraine and Russia to the point where most of that is already built in to the future of the bond market.

Top things to watch right now are consumer sentiment coming out as well as next weeks inflation numbers. Those are becoming more of the market movers now vs the FED changing their tone every week or the war. 

Just continue to monitor daily the MBS as it can change on a dime and make sure you are signed up for my text alerts above. Good morning to lock if you have some short term locks you need to complete assuming we hold to yesterdays close overnight

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

ADAPT AND REACH OUT

In my travels this week visiting clients I have learned many things speaking with many different people in many different situations and what I learned is the more change we see in the market and the industry the more it all looks the exact same.

The moral of the story is everyone is sitting around with a lot of pre-quals on their desk and hoping for housing inventory to increase so they can start closing loans on these pre-quals.

BUT, I have also seen those who are sitting back and worrying and those who are doing what it takes to get out there and get business.

This is where my point comes in. I close between 50 and 60 million in volume per month and between 200 and 300 loans per month. 

All I do is help manage files that may need a little help in finding a way to make it work, taking care of clients and helping folks with scenarios.

I live in guidelines and know them better than anyone out there I am aware of except maybe Bocephus but we are head to head in that area.

Guys and Gals – USE ME! Give me your scenarios, show me your findings, let me review your credit reports and let me help you make a deal work for a client that is in need.

I love figuring out ways to make deals work. Some are just dead and that is what it is but many just may need some massaging and guidance to help them understand their is more than one path for most originations.

31 years in the business, 14th year with Flagstar and hundreds of closings per month. I may not know everything but I can find out if I don’t. Work with an AE that cares about you and your clients well being.

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

ARM BUYING POWER

I was sitting in a meeting yesterday discussing arms with one of my clients and this marketing idea came to me. 

#1 – I found there is a lot of confusion around arms. I will likely do a write up on that next week. But #2 many LO’s are scared to originate them because they do not understand them which was interesting as well.

But to help those who do not understand there value do yourself a little test. 

Go quote a 5, 7 and 10 yr arm and compare against a 30 year fixed. You pick the terms of the loan that fit your market.

Now pick a payment that would fit a borrowers budget. Say they make 70K per year and you want to give them a housing ratio of 31%. 

That would be a payment of $1,808.00. (70K / 12 * .31%)

Now just reverse calculate the loan amount based on the payment of $1,808 using the different arm rates you looked up on the 5, 7, 10 yr arm and the 30 year fixed.

Make a little chart and show the different buying power a borrower has based on the product type they choose. 

Now educate your realtors with this chart to let them know their buyers do have options to be able to purchase the home of their dreams.

Turn Times As Of This Morning Lookin Good!