Category Archives: Mortgage guidelines

Two for Tuesday – DU Updates and IPC’s

#TwoforTuesday – DU is being updated this coming weekend and we discuss a commonly asked question about Interested Party Contributions.  The loan limits have been increased in 2018, are you promoting that?  And this weekend DU Updates to programming will install the final programming for FHA loan limits and VA loan limits will be programmed.  Great to know.  Something like 3000 counties went up this year in loan limit and shouldn’t affect any DU approvals, but if you were waiting for official time to run it, Monday will be it.  Second, Interested Party Contributions seems to be a commonly asked question regards to RE Agents or other parties in a transaction giving gifts.  Or contributions to the borrower in other words.  Well if you are involved in the transaction on the RE side, Fannie Mae doesn’t like it.  So builders, this includes you.  This includes developers and Real Estate Agents as well.

For example, the borrowers Mother is a RE Agent on the home being sold, and they want to gift a down payment monies to their son.  Can’t do it.  Just know these rules on Interested Party Contributions as there is a line that can’t be crossed.

Today I’m social selling all day, and will be following up with those that interact with me.  I am helping more and more people gain leverage on social media.  It’s actually fun to see others thrive as a result.  This is not hard and easy to do “organically”.  The best part is it helps you gain an edge when you are going to boost ads for a Pillar Partner.  I show you exactly how to do this in my training.  Click below and get IN the groups and trainings top LO’s have done.  ↓

This has everything you need in it to start taking advantage of tools to increase mortgage business, check it out; The Mortgage JUICE you need is here!

 

Two for Tuesday – Installment and Revolving accounts!

#TwoforTuesday – So many people fall into this trap and attempt to qualify a client with 10 payments or less and omit that debt.  Make sure you do make sure that the payment is 5% or less of the overall income of the borrower.  If it is, and has 10 months or less that’s when you can omit that debt.  Revolving accounts that are paid off monthly are also a good one, yes, you can omit those.  As long as you can prove that every single month for the last 12 months the client paid off, completely.

Still looking for a launch into the new year?  I have some really good stuff going on behind the scene’s and am helping broker’s and LO’s get mega leads online for FREE!

Yep FREE, while paying for ads is great, and where the “numbers” are, there is an art to this online stuff.  If you have a poor organic campaign, and you attempt to run ads, well you better know stuff about optimization because your ad just might have limited results.  You see this is taught in the marketing books, you should have an “push” and a “pull” campaign working hand in hand.  When you do that results are inevitable.  My suggestion – Get the #BLUEPRINT into action.

It’s an organic marketing campaign management that you can do weekly, daily or monthly that increases your reach, relevancy and results.  And is FREE ladies and gents.  If you implement it on an on-going basis there is no reason social media won’t generate you leads weekly – FREE!  Here it is already, stop procrastinating, it’s not expensive at all, and positions you to win in many ways.  (not 1000’s of dollars like a paid campaign) – In fact in my opinion, it’s a stepping stone to get to paid ads.  If you want stellar results that is.  –

The Blueprint – Ultimate Facebook Fan page Marketing campaign guide ↓
#SellWell

Wonderful Wednesday – The new 1003! It’s coming….

#WonderfulWednesday – The new 1003 comes out this year!! Have you looked at it yet?  I can look at these new forms and the way questions are asked and envision how I will deliver it to clients if I was licensed.  Are you doing this to be proactive?

Todays video is a reminder to do just that, you should know what these look like and how all 5 of these “interactive PDF’s” will be apart of your daily JOB!

 

I have placed the new 1003 links here as I found them:

  1. urla-borrower-information
  2. urla-additional-borrower
  3. urla-unmarried-addendum *see what I was talking about here
  4. urla-lender-loan-information
  5. urla-continuation-sheet

If you are not getting business the way you think you should and “it’s slow” click below, join the Sales Talk with Mortgage Pro’s on Facebook.  See you there! ↓

The Mortgage JUICEman Tools are here!

#SellWell

 

Two for Tuesday – Bitcoin and New Guidelines!

Happy New Year Everyone! Back at it, and today we jump right in to two new guidelines that you need to know about.  If you and your teams need an AE (Wholesale Account Executive) that can help you close more loans by not only a product mix, but by suggestions and marketing help to source business, let’s connect!  NOW’s the time to adjust your lender arsenal to help you teams do more in 2018!!

My team is growing, and we are helping more and more Banks and Credit Unions alleviate their risk on neighborhood watch by getting signed up as a non-delegated sponsor for FHA loans.  By doing so, this can open the doors to allow FHA/VA loans as low as 500 FICO if the bank wanted.  Most banks have an OVERLAY to help maintain a healthy rank on FHA for example, this allows them to offer it as a solution to their sales team, without harming the health of the company! Reach out to me for more details if your a bank that only goes down to 620 FICO or something like that.  We can open the doors for your business in many ways.  #LetsChat

Ok back to #TwoforTuesday, yeah I found out if BITCOIN can be used in a mortgage transaction.  And once sourced and turned into cash, sure it can.  See the short video of the day below! #SellWell – Oh yeah no more once a cash out, always a cash out too!

Have a productive week, in the mix of getting started in 2018, let’s network together! Add to your network a lender that can help you get more loans done!  CLICK BELOW↓

Whacked Out Wednesday – Complete Completely

#WhackedOutWednesday – Complete completely a 1003, a lender app, or anything that is a form to turn in.  Seriously, this is elementary things, but yet grow ups don’t know how to fill in a form!  Like seriously, if a form has a field to be filled in, put something in it! Even if it’s N/A – Something is better than skipping it.  And you may just find that you have an important question you needed to ask or answer.

More importantly, with a complete 1003, DU will not give you errors.  Well, I should say “as much”!  Some of the common errors in 1003’s today for #WhackedOutWednesday will hopefully help you learn to look at these sections to begin with.  Let’s list them;

  1. Type of loan, I know this seems basic but it’s true, sometimes people get in the habit of checking FHA, when it’s actually a conventional loan.  Make sure the boxes at the top of the 1003 in the beginning are correct.
  2. Name, Phone number and Email address;  Again you would think this is elementary but the most common is a 1003 with no email address.  Let’s recap this whole TRID thing, you can’t do a home loan without an email basically, or you wait longer to close.  So if a client doesn’t have an email and they are that old fashioned, open them a free gmail account.  It’s basically required and you will thank yourself later in the loan process (ie CD time)!
  3. Work and Address history – Remember on a 1003 the underwriter is looking for the last “two year” work history.  No matter what the program or how long you want to prove income income etc.  There needs to be a work history and an address history (rent or owned) for a two year period on the 1003.  Simple.
  4. DOWN PAYMENT TYPE – On purchases I highlight this, as a function of DU it reads risk based on weather the down payment is marked from Checking savings or as a GIFT!  If you have a gift and you don’t select that upfront, you could begin a loan and then later on find out your loan isn’t approved.  (*reiterating to fill in the 1003 correctly)
  5. REO section – It’s funny but many professional processors even hate this section and skip it.  If there is a mortgage on the credit report, that means you must tie that loan to an REO in the Real Estate Owned section.  Simple to do, but commonly missed.  OH, and if you have free and clear homes, make sure you assign the “taxes and insurance” on that property to the home so that DTI shows right.  So basically if they have a home fill out the REO section.  Wow what a concept.
  6. Declaration Questions – Including all HMDA /ECOA info.  So that last page, that asks if they are Indian or Asian yeah that one.  Mark it up, it’s needed for your bosses call reports anyhow.  (form they fill in and send in to tell the government whom they have been taking apps with) – Bottom line, make sure you attempt to have all boxes marked on this page.  It is imperative that the 1003 is accurate here as some of these boxes can trigger different approval levels.  And more conditions for sure.

No matter what, if you’re in Wholesale or Retail, the 1003 is like your bible to a loan.  It’s the holy grail that makes or breaks someone’s financing if not completely and accurately taken to begin with.  DIG DEEP – My advice, is anytime you see something not “normal” ask questions – LOTS OF THEM! Do NOT be affraid to ask your client WHY?  Why did you have a job gap? Why did you sell that home, where did the money go?  Can you source any and all large deposits in the last 60 days etc?  Below I souce the 6 top 1003 mistakes for #WhackedOutWednesday – It’s longer than normal however, take notes and implement is my suggestion! #SellWell

It is WHACKED OUT that sometimes mortgage pro’s half ask it on the NUMBER 1 thing that is part of their job.  Filling in the 1003.  Funny in a way, but trust me, the more accurate, the more questions you get asked, and the more detective work you attempt to do in this stage – The MORE LOANS YOU WILL CLOSE!  Meaning fund and get paid on.  So my advice SLOW DOWN, and master your craft.  It’s the one thing that can and will dictate your paycheck! #SellWell

 

Two for Tuesday – & a new VIDEO Opener!

I think you’re gonna like this!!  #TwoforTuesday – Fun edition – I got creative in the last week and got a new video opener!  I am sure it will help Pump you up, and get ready for the day! Join Us In Creating Excitement and get the JUICE’s flowing!  You’re in sales right?  – #JUICE

Two for Tuesday as I always have branded is two tips on guidelines or something mortgage related that you can take with you in the field.  Today’s topic – VOE’s and Pay Check Stubs!  Yep, both are needed to calculate the right income, and both work coherently together.  Supporting each other! #CheckItOut ↓

For those needing to gain more leads so they have more paycheck stubs to check and VOE’s to order – I got your back!  I’m doing a discount for those that want to take charge of their 2018 and learn to earn on Social Media!  If you have a fan page and it doesn’t get you leads every week, I can show you how to change that with my BLUEPRINT!  It’s not rocket science and definitely not hard.  In fact, it’s fun to have a social media presence and YOU can be known as the expert in your area!

Reach out to me, I’m here to help you take #SocialSelling to the next level in 2018! Sign up for the BLUEPRINT today!  – Disclaimer – You do have to actually do work! lol #SellWell

 

Whacked Out Wednesday – QM Fails

#WhackedOutWednesday – QM Fails – Really?! You have a 400,000 dollar loan the borrower can’t even obtain any rate on the ratesheet? Really?!  Yep, this stuff happens if you have a comp plan accustomed to Government loans.  If your comp plan is 2.75 and you’re doing a cashout conventional loan that is getting killed by LLPA’s (loan level pricing adjustments) then odds are you could be in this situation too.  Even with a 680+ FICO, depending on how the break down goes.

I want to share something today, a best practice tip and a way to look at this stuff to help you Broker’s and LO’s in TPO to avoid this mess.  If you’ve been in mortgages long enough more than likely you’ve had some QM fail happen.

**Compliance disclosure – JUST FYI – You’re NOT supposed to just be able to switch from Lender paid comp, to borrower paid comp just for the purpose of passing QM.  It specifically states that in the rules/laws.  (I can show you if needed)  Your Change of Circumstance must be recorded as something else.  FYI

Ok now that’s out of the way, let’s look at a RATE SHEET!  If you see the top of the rate sheet at the top rate pays back “less” than the rate below it, then the rate that pays back the most is the rate considered the “top”.  Second, the SPREAD between the top rate and the next eighth below it will change pricing, but most likely “less” than a whole point.  You have to go down probably two or three eighths’ in rate in order to have a whole point difference between the TOP rates premium.  The KEY TO UNDERSTAND is that rate where the spread is more than 1 point (from the top rate) is where you can start to bonafide a discount point.

The simple way to look at this is to take the indifference after the bonafide discount point and add that to your comp plan.  So if the rate picked was a COST of 1.125 for example… Your comp is 2.75, and as long as the (base premium before adjustments) spread between the top rate and the rate your picking is more than a point, you can bonafide a discount.  So for example, 2.75 + .125 = LESS THAN 3.  Assuming you have bought out the underwriting fee and there are no affiliate fees in the equation, this would pass QM.

Remember in order to bonafide a discount point you can NOT be at the top or the bottom of the rate sheet.  (meaning highest or lowest rate)  Sometimes I don’t even see how this is good for a borrower, but the reality is it is tied to the comp plan.  If you are in the situation where the comp you have with that lender is higher, then watch or do a QM test PRIOR to submitting so you know what your up against.  BEST ADVICE I CAN GIVE.  Do not wait until the loan is submitted or even attempt to lock in process without having an idea of how this plays out.  IN FACT, MOST LENDERS have a FREE QM test available on their “portals” that you can run this test as you register the loan.  I suggest you know how to do this.  Problem avoided.  If you have questions about this hit me up, I’d love to help you understand how this works.  In some cases it is #WhackedOUT – But hey these are the rules we have to play by.  Lower your comp if you’re doing conventional loans, they don’t have a spread like the Govie loans do.

Another “argument” is this is why you have the ability to set up multiple different comp plans with different lenders.  NO, in my opinion you do NOT need to have the same comp across the board with all lenders.  The law doesn’t say that.  (for Broker’s of course).  What it does say is that each LO (MLO) should be paid the same based on type of loan.  And be incentivized based on volume.  But that is another post for another day.  – #SellWell

Two for Tuesday – Non Traditional Groups

#TwoforTuesday – Non-Traditional groups are needed to help when someone needs to qualify with non-traditional credit.  There are two groups that you need three things from.  I will detail this today in efforts to help you pre-qual someone whom has “thin” credit.  NEED ALTERNATIVE TRADE LINES? Here’s what you need to know;

There are two groups, and you need at least 1 thing from group number 1.  Group 1 consists of Rental history, a utility company, or telephone service.  Group 2 can consist of a personal loan, insurance payments (car, medical, renters, life), Child care payments, rent to own payments, or school tuition.  This second group also consists of car lease (rental) payments or retail store credit cards, however I don’t know why an auto lease or retail store wouldn’t report that to the bureaus though.  lol

Here’s a break down of guides for you: Happy Selling!

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To get started click HERE!  #SellWell

 

Two for Tuesday – Tips and Tricks

#TwoforTuesday – A trick to remembering how long someone needs to have been receiving income to use it on a FHA loan.  And a tip to add value right now and gain more purchase business.  Short and sweet today.  I got leads to call.  Do you?

NEED LEADS?  Is it COLD there?  No weather pun intended.  What I’ve done over the past two years is lead by example in creating organic presence on various social media platforms.  If you do not know or “like” and “follow” my fan page on Facebook, please do!  Click HERE to See my FAN PAGE!  Technically it’s a hub of resources within it that any Broker or Mortgage LO can use to help #SellThemselves and gain leads for FREE>

In fact, I have a whole program that I do just this with Broker’s and individual LO’s that want to step up their #SOCIALSELLINGGAME!!  I teach how to plan campaigns weekly on social media business pages to allow those that want to take advantage of social media’s reach.  I teach how to set up a page, to how to push and pull your messages into social media land and gain leads FREE on a weekly basis.

Want to gain #theBLUEPRINT to doing so yourself?  Click BELOW ↓

THE BLUEPRINT IS HERE!

#SellWell

Facebook-Fan-Page-Marketing-Techniques-Tips

 

 

Monday’s Motivation – Guides for LO’s

#MondaysMotivation – Guides for LO’s all week this week.  We will start with a simple cheat sheet for DTI on FHA loans.  A great thing to know, and guide to basically live by.  Too many times I see LO’s wasting time attempting to put a file together that is way out of the ball park.  And DU confirms my thoughts and then they ask me to do a manual, I tell them the same “chart” I go over in today’s video and tell them to restructure.

Use this as a guide;

#SellWell – If you are a mortgage Broker and you’re not hooked up with me, let’s work together in 2018!