Category Archives: Mortgage guidelines

Two for Tuesday – HOPA to the rescue!

#TwoforTuesday – HOPA to the rescue! PMI or Private Mortgage Insurance is a good thing, and explaining to clients how it works, what it’s for, and how it can be cancelled afterwards is all apart of making yourself stand out!

This comes in good timing as rates are going up, and Home Possible and Home Ready programs are more attractive as a result.  In my group Sales Talk with Mortgage Pro’s, a seasoned LO, asked for a price check across the board and asked over 4000 people what their price was for a 30 yr fixed, 80 LTV.  As a result I priced my own and found these two programs a potential “angle” they could pitch.  The crowd loved it, and then PMI came up.  One has it and one doesn’t.  Well there’s advantages and disadvantages to this, in fact PMI is tax deductable up to a certain income bracket still. (married 109k or single 54k).  Today I go over the two ways PMI can be cancelled to help you LO’s be able to explain how it works as a viable option to your clients.

Two for Tuesday – Give your clients options, a Government option and a Conventional with PMI option.  Look at saving them money in the bank and using the Home Ready or Home Possible options, then explain PMI to them.  As a result (assuming they qualify) this can help you stand out as the professional.

#SellWell

Monday Motivation – Get JUICY with Non-QM!

#MondayMotivation – Get JUICY with Non-QM – Join Us In Creating Yes’s from investors that want an easy loan to expand their portfolio of homes this summer.  An easy 10 day close, with Title, Appraisal and verified funds! There’s no debt ratio on this loan, yep, NO INCOME.  And NO RESERVES needed, and you can close in a LLC, and can have 100+ homes financed.  No problem.  This loan is golden for investors doing it right and want to expand their list of investment homes or want to take cash out of one to do improvements.

Today I go over a few updates that are FRESH OFF THE PRESS, to this program as a whole.  We updated the full matrix of guidelines for our Non-QM loan.  Check it out below ↓

This week I am on the hunt for more Mortgage Broker’s that could use our products in their lender list! If you don’t have this NINR in your lender arsenal, let’s chat, I’m expanding to help as many as I can!

As Always – #SellWell

Thursdays Thoughts – Strike Zone Week! VA Loans!!

#ThursdaysThoughts – The best loan in the market hands down in my opinion.  And a great strike zone for me.  If you mortgage Broker’s send in a check for 100 dollars to any lender to sponsor you on VA loans we should be one of them!

VA loans are great, but there are a few things that can “haunt” you if you do them wrong.  1st, make sure you ALWAYS disclose the highest funding fee upfront.  Today I go over a few other tricks and tips and also provide the “Funding fee” chart below to help you and the VA residual test link to double check your calculations.  Check it out below ↓

Below I will post the charts for VA funding and a residual income calculation to help you set up your VA loans for success!! 🙂

VAfundingfee

VAtable

VAresidual

VA loans rock, and we price very well on these loans, #LetsDoBusiness!!  I’m in the office all day taking “I gotta guy” questions to help others on guides!

#SellWell

Whacked out Wednesday – The most under utilized Program!

#WhackedOutWednesday – The most under utilized program is the USDA loan in my opinion.  And today, because it is a #StrikeZone for me, I wanted to highlight some things for you mortgage pro’s.  This is a fantastic program, and guidelines and “zones” have been updated.  You’ll be surprised, you might find this is a great loan to segment an advertising campaign with.

I’m including a few links today, and the 1st will be a link to gain GUS approval on your end.  Many Broker’s seem to not have this set up, and you can do so right from my website.  2nd link will be the calculator to help you see if someone qualifies for this loan.  I go over several guidelines you should know, from what constitutes a large deposit to DTI ratios to look for.

I believe this is a great program, and a #StrikeZone for me.  Here’s the links to help you;

  1. The link for the GUS sign up for you brokers — CLICK HERE!
  2. The link for the qualification calculator for USDA —- CLICK HERE!

For those of you that like ideas to source new business, here’s definitely one of them to segment and see if there’s a USDA zone near you.  #SellWell

 

Two for Tuesday – Cheaters Never Win – Fannie Mae Update!

#TwoforTuesday – Cheaters never win! Fannie Mae’s newest update stops them.  Funny but this is the truth.  Why are we in 2018 and we still are dealing with “Cheaters” in the mortgage industry.  There are some great companies out there and it’s appalling to hear these stories where companies are doing things to cheat and use lender credits for a down payment.  Are you kidding me, you played some loop hole for years just cause?  It’s the same for builders that are giving excessive incentives to a borrower to capture both the Real Estate side and Mortgage side of the equation.  Then taking it away or not offering it if another lender is used.  I am not so sure about the whole KW thing going down right now.  I don’t have an opinion yet, but if they are blatantly “cheating” to incentivize, this is the ethical stuff we need to ban from our industry.

Fannie Mae issues two new changes at the beginning of the month due to those that needed clarity.  Seems the first change is well, I understood it this way for years.  Maybe I just didn’t look to cheat and use it that way.  Crazy some people do this, and Fannie has to update verbiage and completely spell it out.  Second change makes sense and is a helpful one to help those doing construction loans to define the transaction type.  Check it out below ↓

What I feel like doing this summer is creating a list of builders (or other companies) that “cheat” and publicly posting it for those to see.  This can’t go on, if you “cheat” and know it because you’re on the “other side” of some aspect of Real Estate, Title or otherwise and incentivize clients to use your company in a manner that’s abusive.  You should be reported.  Cheaters never win! Well some say maybe in the short term, but in the long haul there will be a cause and affect that might not be in your favor.  Please please please execute good judgement and fair lending practices when in mortgages.  It’s what makes it “right” for the client.  “Do the Right thing” has always been apart of my mantra and it seems more and more companies are actually looking to play loop holes in our industry to gain a competitive edge.  At least for a short lived time.  If you know of a company doing something like this, let me know, I’ll show you the way to report them.

STOP CHEATING! – Fannie Mae shouldn’t have to put out guidelines to clarify a guideline that was set many years ago.  (A lender credit was never intended to be used for a down payment or for compensating third parties) Nor should companies be incentivizing clients to use their services or steer them to use and not offer the same incentive if a borrower chooses another (Shop-able) option.  Watch mark my word, down the road there will be legislation in our industry that if some incentive is offered to use a shop-able service for a mortgage (that is also owned by same mortgage company) there will be a limit or restriction of the incentive.  Or something to the affect that another option is used, a percentage of that incentive would need to be applied.  Something will happen in this area.  Be fair to your clients, your brand and your way of doing business.  Nothing good comes out of cutting corners.  PERIOD>.

#SellWell

Thursdays Thoughts – DTI & FICO buckets for risk threshold on FHA (cheat sheet)

#ThursdaysThoughts – DTI and FICO thresholds exist on all loans. But some are not written in stone. Once you run a ton of DU and get a sense of what’s being approved you can look at a 1008 and a 1003 and basically “see the approval” or know it’s got to be run. This really is somewhat an art. You have to understand the risk thresholds and what that particular DU results may be looking for on that file.

Here’s a cheat sheet if you will. It’s somewhat connected to the FHA manual guidelines, and there is a FICO bucket associated with it. You won’t find many 96.5% LTV FHA loans with under a 620 FICO approved over 50 DTI. It’s rare. It could happen with certain risk factors in favor, like compensating factors read from the 1003. But rare. The idea is this is all correlated to FICO and DTI in these buckets and if you’re a LO you should know these things.

Calling all ACTION TAKERS who want more leads, more closings and more of a pipeline.  I will be working with those that want a rep so local he reply’s at 10:30 pm at night, he works to push your loans to the table, is able to prescreen income to guidelnes to DPA programs.  And is all about helping you grow your business.  YEP, that’s right, that’s me, and what I do is help the LO’s in my network grow their business by helping them learn to source new business online.  If you know you should be expanding your referrals partners, if you know you need to be on social media but haven’t started doing these things, reach out to me I can help.  The BLUEPRINT is a step by step guide to helping you achieve just this.  (Doubling your pipeline is typical for action takers) – Why not YOU!? – Click HERE and start learning today with a 3 day workshop I have put together.  If you get signed up with me I help you further than just 3 days.  *There’s major benefits in partnering with me 🙂 – #LetsDoBusiness

#SellWell – JUICEman (Join Us In Creating Excitement)

Whacked OUT Wednesday – Large Deposit Guideline Edition $$

#WhackedOutWednesday – Is back and in full effect this am.  WOW, I mean WOW, what goes through the mind of clients that think they can just deposit large sums of money in their bank account as you’re doing a purchase loan anyway? lol  Today, I go over the guidelines on large deposits to clear the air, and help you know what to look out for.  HINT – It has to do with what type of loan your doing! Not all deposits are considered equal.  (large)

Don’t be fooled, while I add a lot of value to my Broker partners, and can help them source business, I AM STILL LOOKING FOR ACTION TAKERS!  I am not at my goal monthly and want to help as many mortgage Broker’s as I can.  Sometimes I think people might think I’m swimming in business and don’t need their loan because I do these videos and add so much value inside the groups and social media.  That is not the case, I need and want to help as many people as I can.  If you don’t have a responsive AE, or someone that can help you actually source business on top of close loans for you, CALL ME! – Let’s make it ring today, 304-901-2798 is my office line.  Reach out don’t be shy, I might be able to help on that “I gotta guy” guideline question, or I can discuss with you marketing strategies to help you double your business.  Either way, #LetsDoBusiness!  – I am growing towards my goal daily, but I’m not stopping until I’m there!

#SellWell – JUICEman

Two for Tuesday – Departing Primary guidelines, gift reminder, and URLA!

#TwoforTuesday – A great idea to know these as more “departing primary” scenario’s are coming up.  People are #Downsizing and #MovingUp this year and we will probably see more of this in the summer.  Gift guidelines are also gone over as a reminder when you have multiple units.  Then the URLA info is a BONUS, link will be below the video today if you want to #Checkitout!

If you want to see the new URLA as Fannie Mae’s team has announced it’s completion just last week.  It doesn’t come out officially until July 2019 and not required to be used until 2020 sometime I believe.  Check out the look and feel of it HERE!

#SellWell

Whacked Out Wednesday – *WATCH THIS – Objection handling and a guideline!

#WhackedOutWednesday – Objection Edition – Yep it’s whacked out that people just understand that rates will not be far from each other.  Anywhere they go.  But that’s the consumers right to “shop around” right?  Here’s what I used to say all the time in handling objections at the time of origination.  When pitching there are 3 main points I used to go over on every call.  PLUS in this edition I go over a guideline that I forgot about!

What I suggest is you use some form of this in some way.  You acknowledge the request for more information (objection), you respond as a human with understanding, and you explain what you’ve found over your experience.  ARC/ARP (Acknowledge Respond Pivot or Close) What I used was this Feel Felt Found approach a lot.  It helped me gather my thoughts quickly and respond.

When answering questions and addressing objections I paint pictures and assume ownership along the way.  What allowed me to do this the best, was understanding the WHY?  As funny as it sounds I know LO’s don’t really truly know the “why” behind the client buying, refi’ing or getting cash out all the time.  If you dig deep during the application stages you will find out your clients WHY.  Then push the bruise a little and show them how your custom tailored mortgage solutions helps them achieve their goal.

While doing all this in the process of the pitch or the 1003 information gathering stage I would slip in three statements that often times was the keys to differentiate myself and earn the sale.

  1.  Number 1 complaint in the mortgage industry
  2. 1/3 rule and 5% will actually deliver
  3. Average person does 10 loans in their life time

I hope the structure and bonus guideline helps you today to acknowledge, respond and close a client that we can work on helping together.  If you want to know more about how to work with me, click here!

As always – #SellWell

-JUICEman (Join Us In Creating Excitement)

Two for Tuesday – DU 10.2 updates

#TwoforTuesday – Some great things are coming with DU updates in the next week it looks like.  As Fannie Mae updates the DU programming on March 17th they will be helping DTI’s in the 45-50% across several FICO buckets become more “approve-able”.

Seems FNMA and the programmers understand the behaviors of those getting loans.  And there will be more programming to prevent someone with multiple “apps” out there to rig the system.  You won’t be able to get an appraisal at one lender and a PIW with another.  If the appraisal is registered inside the fannie system, DU will kick out the PIW from the approval it looks like.

Some great updates that actually make sense, there was a couple more and I will recap those as more information becomes available.

Today’s SWWEEEEEETTTT Spot!  600-680 Fico FHA/VA loan is on point.  Also 680+ FICO with 80% LTV or more on the homeready program is also stellar pricing right now! Here’s an open link, you want to “compare” me, go right ahead, price your deal out and let me know how I stand —-> Quick Pricer

#SellWell