# HOW TO PRICE A LOAN – Correctly

Easy go to my website; QUICK PRICE MOTIVE-ATION

However, what I find in pricing loans all day is that Brokers don’t see the QM math.  Maybe I just see it super fast as some number nerd.. lol  Here is an example, and my Broker didn’t see it.  His comp is 2.75% and after the LPC the rate sheet had from 4.625% to 3.25% available on the pricing engine.  We see the top rate paid back almost 1.5% after comp, and 3.875% was par on this 601 FICO FHA client.  BUT, the client needed a lower rate for qualifying, so the broker didn’t know he couldn’t go past  3.625% as a rate costing the client 1 point roughly.  (1.083 costs).  And when he hears me state that asks, “well why?”

GREAT QUESTION!  If QM limits to 3% then we don’t have a lot of room after the 2.75 you charge Mr Broker.  In the industry now it’s not really 3% of the loan amount, it’s like APR was and is 3% of the loan minus costs now basically is a great way to gauge it off the top of your head.  But think of it this way, YOU CAN BONAFIDE ONE DISCOUNT point on loans as long as it’s not the top rate or the lowest rate.  So, 2.75 + .083 = The top your going to be able to give client in costs.  Means the teeter totter effect on the rate versus costs bottom’s out.  You have to see that in advance before LOCKING LOANS!  3.5% on this loan was a cost of 1.509 and with that and the 2.75 comp it’s not passing QM.  I can see it, so should you.

Biggest closing issue this month is loans not passing QM and the LO should know how to figure this out.  You can’t have a 2.75% comp plan and then charge 2.75 in points, the most your going to get is 1.125% ish as cost to bonafide one discount point and have the .125 + your comp go into it.  THIS ASSUMES, you waive the underwriting fee, not in TX and you don’t have any other affiliated business fee’s going into QM tests.

As a cheat sheet, this is what goes into QM;

Lender Paid Commission/Borrower paid commission + Underwriting fee + TX attorney fee + Points (after 1 bonafide discount point exempted) + any affiliated business profit = QM 3% or less.  *note this is a fast way to do it in your head and not be off by 1000’s and is not 100% all the algorithms to use. Use your internal software and run the true test.  But with naked eye this hopefully will help some “see it”.  – Juiceman

# OBJECTIONS & ENTHUSIASM

The second step in sales besides knowing how to vision the yes through belief is to handle the ask for more information.  This is often called objections in the sales world.  It’s really the prospect asking for more information.  View it that way.  The best TRICK with any objection is to stop and rephrase the “objection” as a question in your head and then answer it.

There are THREE (3) main reasons why someone objects to something.  1; To DEFEND themselves.  2; It’s a VALID EXPRESSION of where they are in life. 3; They are FEARFUL. Yes, they could be that broke.  Yes, they could be having a bad day and your timing is off selling them whatever, or it is fear and they may not see the value your adding.

Remember people buy from people they like.  So stand up if you sell over the phone, MOTION CREATES EMOTION.  Too many times I’ve done a sales seminar or free strategy sessions with Brokers and Mortgage telemarketers and they don’t have any type of persona while on the phone… they sound like plain Jane.  WHAT?  Your in the telemarketing sales and you don’t have a PHONE CHARACTER that you develop while on the phone? How do you get people to like you with such a silent “charm”?  Create that energy, create that phone voice that is fun to work with and others will be receptive.  Smile as you do it, even if it’s over the phone, it’s amazing how others can “see” it.  And respond to objections with energy and with enthusiasm.

ENTHUSIASM is the key to persuasion without pressure.  Minimize your objection time and work the head not the wallet.  Do this by selling value to the client first, ask questions to uncover their wants and then fulfill them with your product or service.  99% of the time a sale is made, either they buy from you or you bought why they can’t.  That’s why the best of the best sales people tell lots of stories.  FACT TELL< STORIES SELL.  Paint a picture with your client while answering their questions and presenting value.  Assume the sale, paint the picture of better credit and less monthly payments, paint the picture of the new house with a red door and blue shutters.  The use of painted pictures in sales should help describe in more detail your products/services and values or your clients using them.

Happy selling this afternoon, I’m posting a bunch of “canned responses” to various mortgage objections all day on the face book group, THE MORTGAGE JUICEMAN GROUP

-Juiceman

To sell something really anything you have to know your audience.  Most then don’t fit them into some category to help aid an Impulse for a buy as quickly as others.  This is a sales skill that develops over time at any place.  And the top 5% producers at any sales company have it down “canned”.  Responses that appeal to one of these impulses or multiple ones and then drive it home for the sale.  They are; Fear of loss; Urgency; Greed; Indifference.  These are the things that make up FUGI.  And is an acronym that all in sales should know.  These are IMPULSES that help a client buy.  Understanding them and then applying this while selling will help you actually SELL.  Or at least know how to respond in the act of pitching your product.

Fear of loss is a big one.  Fear of loss and missing out on the lowest rate is akso the “why” when someone is shopping you.  Urgency is created with a LIMITED AMOUNT OF TIME or LIMITED NUMBER of widgets for example.  But how many of you mortgage experts push this, it seems NOBODY PUSHES URGENCY like they should.  Loans shouldn’t take 30-45 days to close.  Rates change daily, did you forget this?  Greed is playing on what got the clients in this mental state.  They want what the “Jones’s”have, the low low rate talked about at the water cooler at work.  Then there is Indifference.  Indifference is where the consultative sale is.  The key to indifference is asking questions, and using the information to guide your sale.

People buy from people they TRUST.  In order to get them to trust you, they have to like you.   So be personable, relate to them.  HECK MIRROR them if you can.  I once wrote a loan at Quickenloans because the man thought I was a woman.  Seriously, I spent hours on the phone with the wife upfront and she knew I was a guy.  She just let me know how to appeal to the husband.  I never told him otherwise, he just thought I was a girl because I appealed to those wants he was looking for.  He found out after we closed, he he…

To get people to trust you on the phone use this technique to get them to like you, it’s called FORM… Family, Occupation, Recreation, and Motivation.  These topics can expand to other things, but is the root of what to talk about.  NEVER TALK POLITICS or RELIGION on a sales call.. Golden rule.  Now today appeal to those impulses sent to you over the phone or in person and address the prospects questions and concerns, paint pictures and respond with energy & enthusiasm.  TODAY I WILL POST A BUNCH OF OBJECTION RESPONSES TO MORTGAGE OBJECTIONS ON MY FACE BOOK GROUP.  My ask is to follow me if you haven’t already.

The Mortgage Juiceman Group

-The Mortgage Juiceman

# Believe in Better

Lesson One; Believe.

Your imagination along with positive thoughts can quite often produce the right reality to match your wildest dreams.  MILLIONAIRES Believe, have faith, constantly tell themselves in thoughts and deep within their heart with positive repetition that they can do something.  Thoughts negative or positive grow stronger with repetition.  Many of the things that I have started on my dream space collage that I made as a kid.  Everything I have started as a dream or thought.  Now today in professional sales I do this all the time.

My LEGACY; I am the possibility of people living the life they desire, through positive thinking, dreaming big, having blind faith and in the pursuit of sharing success with others.  MY GOAL IS TO SHARE HOW TO’s that are NOT TAUGHT in grade school or college classrooms.

I am a master a sales, and want to help others in sales take concepts, skills, and actions and bring them to life.  The first thing to remember about this is how to channel positive energy and thoughts and bring them to life.  Lesson One; If you think positive, positive things will happen to you.  If you think negative, negative things will happen.  If you constantly envision a positive plan to better yourself and write down your goals, you will get there.  Have faith in believe in the end before you get there.

I have heard a thousand times, these leads are terrible.  So picture the prospect picking up the phone so you can see they are a potential customer.  THIS IS NUMBER 1.  I can’t tell you how many times I smiled and dialed some mortgage lead that was saturated by other telemarketers for months, but envisioned the YES before the call, and guess what happened, I wrote that mortgage.  Have faith, and belief in your goal, this is step one in sales, tell yourself that client will pick up and you will have a great conversation before you even dial.  Envision it.  Believe.  It will help your goals and dreams come alive.

AFTERNOON JUICE ON A MONDAY / Motive – Where we believe in Better. – Juiceman

# WHO ARE YOU? WHAT DO YOU DO? AND WHY SHOULD I WORK WITH YOU?

Whom am I you ask?  I am the mortgage JUICEMAN.  I have a big foot print in sales of all types.  Specifically mortgage origination.  I once wrote 47 mortgage loans in one month.  The first car I ever sold was a Plymouth Prowler (great story if you ever want to know how I entered the world of sales), and I have grown many different teams of sales people.  I have developed training for Loan officers and help mortgage companies double in size.

What do I do best?  I help Loan Officers grow their business.  I consistently give out major JUICE to help with handling objections, to options to pitch a client.  I help Loan Officers put together loans, take a full 1003 asking the best questions, and gain approvals through automated underwriting systems like DU or LP.  Now more than ever before especially with this main stream media you are reading, I brand and teach other’s how to do the same thing.  I help custom tailor business plans for Mortgage companies across the US all the time.  In my position I’ve heard not only all the objections to doing a mortgage but see and hear all the PROBLEMS with loans.  What I do is share and provide solutions and help everyone succeed. Then my MOTIVE-ATING team of underwriters helps me close the loans of the partners I have all across the US.

Partner with Motive Lending and THE MORTGAGE JUICEMAN, I  am a different kind of Account Executive.  I can even provide leads to brokers.  And do it all the time for those in my core groups.  What value does your AE give your Loan Officers?

-Call the JUICEMAN today for a free partnership for 12 months.  I will earn the right to stay in your lender arsenal.

# Motive-ating VA Products

We are happy to be “Shielding” your loans against overlays…Motive-ated to offer the TRUE VA IRRRL.  And a new announcement.  Looks like some House bill was potentially passed through Senate and the President Obama may sign it.  It reverses the loan limits of VA loans.  Meaning there is no loan limits on VA loans and would allow 100% Financing.  Way to MOTIVE-ATE the VA Product.  This will help a ton of Vet’s that in certain areas have loan limits and that Vet is made to put a portion of some odd fraction equation together to the table.  (lol, Broker’s ask me loan amounts/loan limit and max loan amount calcs on VA all the time)

MOTIVE LENDING is a superior company in the VA product arena that goes by guidelines, allows for LP or DU approvals, and we will “Shield” your file from overlays.

IF your a Broker sending a check at the beginning of the year for 100 dollars to your lenders arsenal for sponsorship of VA products, LET’S MAKE MOTIVE LENDING one of them.  Applications to partnership with MOTIVE LENDING ARE FREE.

Contact me today.  Fill out the VA sponsorship with MOTIVE LENDING> Some BIG BIG changes “could” be finalized soon.  Make it Easy, Make it Motive!

# Are you the “sales badass” you think you are?

Are you the “sales badass” you think you are?

Part of my continued education into the new year was to commit myself on working on SALES.  I’ve been reading more books (heck I haven’t picked up a book in a hot second), I’ve been researching BADASS sales organizations and looking for ways to copy, make myself DUPLICATEABLE as well hone in on my own strengths and expand my own horizon again on the very skill that I have that pays my bills.  \$\$SALES\$\$

Like professional athletes they train their muscles and expand their skills by practicing their craft.  Let me ask you, when was the last time you PRACTICED a close.  Or watched a video on strengthening relationships in sales or did an elevator speech in front of a crowd just to perfect it?  Most sales people think they do this every day while “working”.   When was the last time you flexed your muscles and handled more than 5 objections with one client, and asked for the sale more than 5 times?  In a lot of sales I see it’s about relationships in my world and a great bit of knowledge on guidelines and a great support staff at Motive Lending that allows me to offer what I can for my group.  But a lot of what I do is follow up, calling the “key contacts” that I have in Broker shops across the Nation.  Almost 100 accounts right now.  And that makes the exposure and amount of time I need to call through those contacts a LAW OF AVERAGE for me.  The more I call (about 5 times) and attempt to add value answer guideline questions and get a loan to help close and make them money, the more loans I get.  LAW OF AVERAGE is different for everyone.  When was the last time you evaluated your LOA?  Can you increase it by “working your muscles”?

Being prepared, having a plan as well as the RESOURCES to back you is all it takes.  I recently have done more on FB with sales and am looking to do a lot more in creating my business on FB this year.  While LINKEDIN is like flexing my muscles for me to do research on people, and news, I then apply my knowledge on FB and these two definitely play a role together.  More and more I see how FB especially those sales B2C are so beneficial of having SOME SYSTEM of duplication on FB to cash in on.  That actually DRIVES PEOPLE wanting your service directly to you.  Not just networking, I mean funnels to leads for borrowers’ LOOKING FOR MORTGAGES right through FB and that lead instant messages you.  Or want to BUY A CAR for example. Or NEED HEALTH INSURANCE TODAY.  Just about everything including SEO to GRAPHIC DESIGN can benefit from having FB drive business to you. Even B2B sales can benefit.  If you have taken me up on any FREE strategy sessions and are up to implementing action plans that can drive people to you call me, I have something for you heavy hitters.

Are you the “sales” badass you think you are?

Holly smolly.  But on FB it’s more like HOLLY F*&^% SH*&, these sales groups and those doing this right make those on LinkedIn look like elementary school kids.  The groups I’ve seen that have some major players in sales known Nationally are KILLING IT>  And they show you how to do this.

Today network with me, The Mortgage Juiceman Group .I have gained over 10 leads for mortgages in just 2 days and passed them out.  But reason I suggest to do so is for support.  The questions above all stem to having some real support on a “live” objection a sales person has 10 minutes ago and then has instantly 100’s of responses from people that could help the person rehash his client so to speak.  Totally wow’d on the power social media has for those who work it right.  What I ask today is have you researched this?  Are you flexing your relationship muscles, studying your products, actually practicing your closes?  And what BADASS SALES QUESTIONS can you ask to gain a sale today?  When was the last time you practiced your pitch?  – JUICEMAN

# FHA Tricks I’ve learned over the years

To most originators now day’s FHA loans are something that can pertain to half a Loan Originators pipeline or more. I have compiled some of the coolest FHA tricks, debugged myths’ and special things done on FHA loans in a list to create the top 20 FHA tricks. Here they are;

1. FHA Streamlines have no income and no appraisal. Most companies require some form of a credit report. At Motive Lending we require a full tri-merge report but underwrite (look at) only the mortgage rating on the credit.

2. FHA allows transferred appraisals, most originators know this. The case number follows the property not the client. So if the case number is transferred to another lender the loan potentially can still be closed. **I say potentially because if you didn’t know most companies place a MCR on files (mortgage credit reject) if they have an overlay. At the new Lender they may review this MCR and not accept the loan if the MCR is marked for things like fraud.

3. FHA allows clients to have disputes on their credit report that do not need to be removed. If the cumulative balance of all disputed accounts is less than \$1000, the disputes do not need to be removed.

4. 1×30 for a mortgage rating is allowed with Approved/Eligible findings. The client must be current at the time of funding.

5. Student loans can NOT be omitted on FHA any longer. Use 2% of the balance as a payment or gain a payment letter and we will use that.

6. FHA Allows collection accounts to be omitted if collectively less than \$2000.

7. FHA Streamlines can be on investment properties.

8. FHA now requires a well cert to verify the purity of the water if the property has a private septic and well system.  **FYI newest guideline.

9. FHA allows different types of pay to be used and calculated in the income when you have at least 1 year of receiving that income type. Such as shift differential pay, or over time, or bonus income.. **Provided that the underwriter feels that it’s likely to continue you can use that income. Commission income you must be receiving for 2 years to use.

10. FHA allows you to be a buyers agent as a Realtor, and do the home mortgage for the same client. You just can not be a selling agent Realtor and do the loan. This rule only applies to any LO on a broker side of things, if any Lender is also fully endorsed with FHA they can not have an employed Agent do this.

11. FHA allows a client to combine a 1st and 2nd loan (even if not purchase money) and consider the transaction a rate and term transaction. Up to 97.75% LTV on refi’s.

12. FHA allows a client who had a modification to do a loan if they have been paying on time for 12 months proceeding the modification. They also have to be current on all installment debt. If they are late a 3 year waiting period is imposed.

13. FHA allows a manual underwrite with max ratios of 31/43 if you receive findings that are refer/eligible. With 1 compensating factor you can do 37/47 with ratios and with 2 compensating factors go to 40/50 with ratios.

14. FHA allows a client to do a loan 2 years after a Bankruptcy or 3 years after a foreclosure. If the client included a mortgage in the BK they have to wait 3 years.You can now even do a loan when someone just discharged a CHP 13 BK.

15. FHA allows non-occupied co-borrowers to help with the approval on loans.

16. FHA mortgage insurance will never fall off the loan now days, they once did have a time where MIP could be removed off a loan. The client would have to have 78% LTV and had the MIP for a minimum of 5 years.

17. FHA will insure loans with DTI’s up to 57% with approved/eligible findings.

18. FHA has announced they no longer will be charging client’s 30 days of interest if the loan is not paid off at the first of the month. FHA will only be allowed to charge interest until the day paid off. Just like conventional. Great news for Streamlines.  Now this was on case numbers originated at the beginning of FEB last year (2015).  When the change to monthly MI happened.  So we will start to see these loans coming soon.

19. With the MI amount dropping from 1.15 to .85 last year, if you find a FHA loan originated prior to 2015, you can do the streamline refi and achieve 5% payment reduction at the same rate.  That’s right, you read that right.  SAME rate on the loan amounts of about 115k or more will save 5% alone in the MI reduction to .85.  This was and is GOLD for those that work the right campaign..

20.  I got a guy questions come flowing in all the time to me about FHA manual underwriting guidelines.  Motive goes down to 580 FICO and we allow for manually underwritten guidelines.  – JUICEMAN

# TOP VA Tricks and guides I’ve learned

VA loans are awesome.  As an AE I wish when I was originating I knew what I know now about VA loans and would’ve marketed these like crazy.  A brokers 100% successful product market campaign that will drive results.  VA loan marketing.  Sometimes when a broker markets a specific target marketing they can get an array of qualified and unqualified individuals.  VA loan marketing will drive results as a result of product guidelines. VA’s guidelines are such a breath of fresh air to see the openness and leniency of guidelines.  I’ve taken the time to list a few guideline tricks to help add value to my network on VA loans.

Guidelines and overlays to look out for. Some lenders don’t allow all of these, ML does.

• No AVM on VA IRRRL or 2055 required. -ML goes off the original loan amount for the LTV
• Up to 135% of the original loan amount is allowed on VA loans
• VA loans with ML go down to 580 and we can do 100% CASH OUT.  Up to 1 Million loan amount.
• VA allows up to 100% cash out with a 700 FICO up to 1.5 Million (1-1.5 million a 700 FICO is needed)
• VA IRRRL’s can be done with a Mortgage Only credit report that shows the ficos. “Non-credit qualify” is an option with ML.
• VA allows any DTI on any “accept” finding.  VA can be run on DU or LP.  Some companies only allow for one or the other.  ML allows both.
• VA allows manual underwriting up to 50% DTI if the client has 3 months reserves and with ML you also need 150% residual income.
• Collection accounts do NOT need to be paid off
• Disputed accounts don’t disqualify the client (and you don’t need to remove them)
• On VA loans you can ignore charge off accounts.
• Judgements do need to be paid off.
• FLIPS are allowed on VA loans.
• Foreclosure and BK 7 wait is only 2 years

VA loan guidelines are more interesting than that of FHA in my opinion.  They are more advantageous to potential clients (Vet’s) with somewhat challenging circumstances.  Hence why a target marketing campaign for VA type loans is so successful in almost any area.  (helpful in area of Military Bases) I love helping serve others that helped serve us.  Motive Lending (ML) offer’s the “real VA IRRRL” and goes by findings.  We also manually underwrite and have great pricing.  And if you are sending in a 100 dollar check right now to some lender to sponsor you to do VA loans this year, LOOK NO FURTHER.  The JUICEMAN and his MOTIVE-ATING team can help. Please call me with all “I got a guy” questions on VA loans.  – JUICEMAN