Where R Rates / MBS Market Update
THE FED SPOKE
Yesterday the markets reacted by not reacting yesterday to the results of the Fed Meeting.
As expected there was no Fed Rate change and we do not expect to see any change in the near future. Powell stated that unemployment has stabilized at a lower level. They said the inflation risk is balanced with labor and inflation. The markets took at this as steady as she goes and did not have big market reactions yesterday.
This morning GDP came in lower than expected which is good for mortgage rates and then jobless claims came in lower than expected which is not as good for mortgage rates. The two combined leave us with a give and take for what is good for mortgage rates.
The next big item is tomorrow with PCE (Personal Consumption Expenditures) which is a big inflation number. This could really turn the markets depending on what it does for the better or for the worse.
Stay tuned and let’s see what happens. I accidentally did not hit the send button so sorry for the delay.
| YESTERDAY CONV 5.5% – UP 6 CONV 6.0% – UP 3 GOVT 6.0% – UP 3 10 YR NOTE – DOWN 2 TO 4.53 DOW JONES – DOWN 111 |
| SO FAR TODAY CONV 5.5% – UP 16 CONV 6.0% – UP 10 GOVT 5.5% – UP 3 GOVT 6.0% – UP 6 10 YR NOTE – DOWN 1 TO 4.52 DOW JONES – UP 55 |
GREEN is GOOD for Rates – RED is BAD for Rates
Product & Guideline Highlights
NON-CITIZEN BORROWER ELIGIBILITY
Non-Citizen borrower eligibility made simple. Kind of.
This is an area that I am not an expert in although I have always wanted to dig deeper. Each lender has different rules on what and who they allow so the important thing to know is that just because a lender says no does not mean the agencies do not allow it.
Mr. Cooper is a little more strict although with AD Mortgage which is acquiring our division is very open to non-citizen borrowers which I am looking forward to come April 1st.
FHA, VA and USDA has different guides than what I am talking about today.
This is specifically for Fannie Mae as I am using their document which I will share with you.
Fannie makes it quite simple. Ask three questions to get your answer if a borrower is eligible.
#1 – IS THE BORROWER LEGALLY PRESENT? – Fannie says if a borrower has a SS # or ITIN then yes they are legally present. So, if you have SS# or ITIN you pass this test.
#2 – DOES BORROWER HAVE DOCUMENTATION TO VERIFY THEIR STATUS IN THE STATES? – The most common documents are the Permanent Resident Alien Card (Green Card), Work Visa, Entry Stamps, EAD (Employment Authorization Document) and I-551 Stamps. Have a legal one of those with a proper type then they pass.
#3 – DO THEY HAVE STANDARD INCOME DOCUMENTATION? – Can they prove 3 year continuance of income when applicable. Do they have two full years of self-employment and standard income documents.
Here is a link to Fannie’s quick guide and I thought it was very well done with good example.
FANNIE NON-CITIZEN BORROWER ELIGIBILITY
Jackism of the Day
LISTEN UP FOLKS
There are truths in life that are easy to realize and act on and then there are truths in life that as much as we genuinely want to it is a chore and battle to put our best foot forward in areas.
For myself and I know for many of you out there the ability to listen actively to someone who is speaking whether face to face or in front of a group is one of the most difficult and at the same time most beneficial things you can do.
Let’s be honest here and think back to some recent conversations you have had with others either at the water cooler, over the lunch table, while they were explaining something going on in their life. Or think of a time you were on a webinar that you were taking part in, a Sunday sermon or a speaker that you actually paid to go see.
We listen in two different ways. We listen where we are all in and focused and genuninely care about the person and what they are saying and then we listen with one ear open and one ear in a completely different place.
I mean come on. Let’s admit it. The way our minds are built we have mastered the ability to hear the first sentence of what someone is going to say and then we formulate what the rest of the story will be. We already know the intent and the story seconds in to the person speaking the words. We then make a decision of what we know the end will be. We then form a judgment of whether it is worth our time to actually listen and be present and based on that judgment we assess whether or not we are going to listen or not.
Since our culture has trained us to multitask and how quick we get sidetracked by something around us we can typically tell how well we are doing. When we are not truly listening our responses or questions to the person speaking are usually very surface level, superficial and lack any genuine feedback to the person speaking. You are basically thinking up things to say to keep the conversation going because you really would prefer to be somewhere else.
Oh my oh my is that me in a nutshell. After 34 years in this business when you call me up with a scenario I have already made up my mind with the answer exactly 6 seconds in to the question and as some of you know I will interrupt you and just give you the answer which is so rude. Yep, I know.
Many folks want to give me the entire story line of the why behind the what. On a regular basis I give myself a mindset that says Jack, today you are going to fully listen, understand what they are going through and be there for your clients so they feel understood, heard and appreciated. That is fantastic until I would rather be doing something else besides listen to another borrowers story of why their income is messed up, credit is destroyed, assets make no sense and why we should realize this really is a good loan and a good borrower when everything on paper says the opposite.
We will not even get in to my listening abilities with my wife and kids. I do try though. My little brain sometimes just says I am bored and it is time to move on.
This is why going to a business association meeting or a gathering of people where I do not know anyone is like my most dreaded thing in life. Just shoot me : )
On the other hand when I do listen and completely immerse myself in a conversation I walk away feeling fantastic and the reward is far greater than I could have ever expected. I actually feel like I am in the moment and nothing else matters than the person I am with right then. I am genuinely interested in what they have to say and equally important who they are and what they mean to me.
My words, my tone, my body language all are saying I am here and I care. How that makes others feel valued, appreciated and heard can go a long way in our life and theirs. It truly does make a difference in your day and theirs and it makes it a day worth being a part of.
From time to time there is something I do with my wife that helps me be present and to truly engage with her. When.I want to focus on a conversation or a person so they feel valued I take on the mindset of an investigative reporter. I listen to each word so I can find the most out of what is being said and then I ask probing questions to find out more about what they are saying, thinking and want to share.
When I take on this mindset our conversations are deeper, more fulfilling and my wife always feels more loved. As long as I do not get to crazy as she will say what is wrong with you?
How have you done lately? Are you listening to those around you or are you just a passenger on the bus waiting for the next stop and ready to get off and on to the next place you have to go?
Give it a try today. Be an investigative reporter vs a tabloid writer where you make up your own story and see how others around you feel when you are fully present and engaged in what they have to say.
