Where R Rates / MBS Market Update

RATES GET BOOST

Not much movement yesterday and we are seeing some nice improvement this morning to start the day. Although the coupons showing better are rates that will have a substantial discount. Depends on where you are on the rate sheet will depend if you see better pricing today.

Yesterday, we had a very good demand for the 30 year bond which was great to see and resulted in the 10 Year yield going down (good) and it has gone down some more this morning. This is a great reversal we are seeing and shows that in the technical trading of bonds it hit a ceiling of resistance and is coming down a bit.

That just means what goes up is likely going to have to come down at some point. One of the major reasons the 10 Year came down is it hit a yield in the 4.7’s for a long term bond so investors were buying it up. Think of a high yield savings account around 5%. Same thing except it is U.S. Treasuries. Fyi, you can buy those as well vs just sticking it in a CD or an adjustable savings account that can go down or up at any given time.

We also received the Fed minutes yesterday from the last meeting. It brought more light on they are going to slow cuts after the December meeting due to impending inflation reports, strong jobs potential and consumers keep on spending money.

Tomorrow is a big event with all of the jobs and payroll reports coming out. This can and will move markets if not as expected and it will be coming out before morning rate sheets so make sure you are where you want to be on files that are not locked.

Other than that today should be a fairly boring day. A great day to watch the funeral proceeding for President Jimmy Carter. The more I hear about him the more I am going to go read his bibliography. Regardless of what you thought about his politics, he sounds like he was a pretty amazing man.

GREEN is GOOD for Rates – RED is BAD for Rates

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Product & Guideline Highlights

MEDICAL DEBT BANNED FROM CREDIT

On Monday January 7th the CFPB finalized a new rule banning credit reports from putting medical collections on personal credit reports. The Biden Administration signed off on the new rule and is putting it in place.

What I cannot find anywhere is the date where it will become effective. Another caveat is this is part of the political mess we have between Democrats and Republicans currently. Biden Administration trying to issue rules before they leave the White House and how the Trump Administration will be rolling back much of what they do. More political nonsense but tis what it tis.

I am hoping this is not one of the items that the Trump Administration would reverse the ban on. This is not one of the big items that Trump 2.0 is focused on so lets hope this one flows through.

In 2023 the CFPB got a rule banning medical collections below $500 and now this rule will ban all medical debt regardless of the amount.

They estimate this will result in 22,000 additional mortgages being approved that would have otherwise been denied.

For those with medical debt on their credit they are estimating a 20 point increase in the credit score and will remove 49 billion in medical debt from the credit report from 14 million borrowers.

The CFPB states that medical debt is not a good indicator of how a borrower will pay their bills and is the reasoning behind removing these debts. Medical bills are impacting around 100 million people and medical debt has more tradelines than credit cards, utilities and auto loans so this will make a big impact in getting approvals on more loans.

This would be great to share with what is upcoming for referral partners and potential clients who know their score has been impacted from medical collections. Let them know there is hope for homeownership in the near future.

Jackism of the Day

OPERATIONAL SPEED

If I asked you what level of impact you are operating at what would it be?

By impact, I mean what percentage of your capabilities are you actually using?

Are you running at 80% of what you are actually capable of doing? Or is it maybe 20, 30, 40, 50 or 60% of your maximum abilities?

Let’s say for example you are using 80% of what you are capable of doing. What if you were running at 95% of what you are capable of?

Let’s imagine you are using 80% of what you are actually able to do. By moving to 95% of what you are actually able to do you could increase your life efficiency and abundancy by 15%. What if everything in your life got better by 15%.

Better yet, most folks are running probably at 45 – 50% of what they could be doing if they went all out. Now what if you went to 95% capability. You could pretty much double what your output is now.

Just think about it for a moment. How much effort are you putting into life at the moment. Be honest with yourself. Are you being all you can be?

I was listening to one of Darren Hardy’s videos which is who I use as my coach if you will. One of the best I have ever been a part of. I highly recommend him if you are looking to grow.

He was advertising his JumpStart program which I have been through and it was a great reminder of why we do not do near as much as we are capable of. Then, if we did do what we were capable of the immense difference it would make in our lives.

He gives 6 ways to rewire ourselves to be our best. Of course, this is just a list and it would make a lot more sense if you went through this program or one of his many others. They can definitely be life changing.

THE 6 ITEMS TO REWIRE YOURSELF ARE
#1 – Know Your Identity
#2 – Your Habits
#3 – Your Behaviors
#4 – Your Choices
#5 – Consistency
#6 – You! What You Think and Believe

I have spent a massive amount of time focusing on these areas of my life and the life change I have experienced is far more than I was ever able to do in my business, my marriage, my family and my community.

Today’s message is simply a self-awareness test of where you think you are and where you know you would like to be. Whether it is Darren Hardy or any other motivator of choice. Without the 6 items above changing you will simply be spinning your wheels.

You can want something as much as you want and it is not until you know your identity, create habits and behaviors, make the right choices on a consistent bases and truly believe in what you are doing that you will ever being to see true lasting change.

For those who are wanting to go to the next level in your business, marriage, familial relationships and your community. I encourage you to start and see where the journey takes you.