My Perspective

Saw this today, a News Release from the Federal Reserve:

"The Federal Reserve on Tuesday announced that it expects to begin operations in early January under the previously announced program to purchase mortgage-backed securities (MBS) and that it has selected private investment managers to act as its agents in implementing the program.

Under the MBS purchase program, the Federal Reserve will purchase MBS backed by Fannie Mae, Freddie Mac, and Ginnie Mae; the program is being established to support the mortgage and housing markets and to foster improved conditions in financial markets more generally."

May sound familar, since it’s exactly what ‘Hank the Bald’ promised America when he got his $700 Billion congressional backed LOOT, which he promptly distributed to his pals … not one cent towards those legendary TOXIC mortgage assets.

This is wonderful news for our industry. HAPPY NEW YEAR!

This past week Secret! University issued two special year end Press Releases, take a moment and check them out! You’ll like them both, and one of them could save you some LOOT!

HAPPY NEW YEAR!

Given how busy everyone is at this time of the year, I decided this morning to extend the time Deadline to send me an e-mail that you want to participate in our upcoming complimentary presentation of our latest: "How to Train a Newbie Processor – to complete a 1003 and collect a full doc loan package from a customer (instead of paying an LO $$$$ thousands for the same thing)."  This start to finish lesson is from first customer contact through loan program selection, rate quote, application completion, stip-list delivery to customer, and GFE completion and presentation to a complete stranger inbound potential applicant initial contact.

Most of you are unaware the residential mortgage business concept of over-paying LO’s with gagging Big Commissions - as if they were worth their own weight in Gold – began pretty much just after the 1998 industry cycle correction. Those mortgage broker owner/ operators out there who have ever had a group of LO’s they needed to manager, know what a chore that can be, and the enormity of the expense to keep them.

The concept this free lesson shows is the folly of that LO payroll biz notion.  What I have written about I know has worked for many many many decades, and still does today. It’s easy to put in place and will take probably 30 minutes of your time to train the processor how to use your favorite lender’s rate sheet, and your LOS system. Otherwise, you keep in your company checkbook those six figure commissions for youself, advertising, and your operation’s overall future.

Please send me a private e-mail before Christmas Day and let me know if you would like to watch (and comment if you like) this lesson we’ll make available just after the first of the year!

I got such a kick out of this picture when I first saw it last year, I kept it; I hope you see the humor in it as I do, no insult intended by me just a chuckle at a time when we all can use some laughter.

In The Mortgageland Journal’s December 1st Edition and also in my December 8th blog post below, I spoke about a Lesson I’ve put together in our Virtual Campus. Given conforming lenders are everywhere these days, some have said they’re a ‘dime a dozen’ – and with residential mortgage loan interest rates falling like a rock, there are a lot of Shops out there busy with inbound applicants (the public knows rates are falling!), so there’s plenty of funding sources for the customer’s loan … busier than they have been all year long! That’s Great too!

In the past I have remarked a few times that I feel the friends of Secret! University are the ones that have made this Blog the busiest individual page in our website, I appreciate your support of my published feelings here from time to time.

In that spirit of good will I want to offer to all Mortgage Brokers who are regular readers of my blog, a free one hour webinar session on our latest: "How to Train a Newbie Processor – to complete a 1003 and collect a full doc loan package from a customer (instead of paying an LO $$$$ thousands for the same thing)."

This start to finish lesson is from first customer contact through loan program selection, rate quote, application completion, stip-list delivery to customer, and GFE completion and presentation to a complete stranger inbound potential applicant initial contact.

You can watch it yourself first alone, then later we’ll make it available to your processor also at no charge. To get on our list, simply send me an e-mail This Week asking to join this complementary webinar, which I  trust will put money in your pocket immediately. We’ll run it first week of January.

It’s just my way of saying, Merry Christmas and to remind you everybody is hurting these days – this is my small part to help support your efforts during these scary times.

No, that’s not a chart of your stock portfolio’s recent history (athought it does look kinda familar) – it’s my prediction of conforming residential mortgage interest rates over the near and intermediate term.

"The Treasury Department purchased $23.2 billion in Fannie Mae and Freddie Mac mortgage-backed securities in November and the Federal Reserve is gearing up to purchase GSE MBS by the end of December in an effort to reduce mortgage rates. Since Sept. 7, when the mortgage giants were placed in conservatorships, Treasury has purchased nearly $50 billion in government sponsored enterprise MBS. The Federal Reserve Board has committed to purchase $500 billion in Fannie and Freddie MBS over the next several quarters and $100 billion in GSE debt."

With news articles like this, rates have nowhere else to go, but DOWN! I venture to say, it’s the best news the industry’s heard in quite some time! Ok then, Time to Get to Work!

That’s how I feel some days, when everything seems to be uphill. Sorta reminds me of one thing my Dad used to say, he walked to school in the snow, and it was uphill BOTH ways! So, I guess hard times never change.

The last couple of days I have enjoyed working on our latest Lesson: How to Train a Newbie Processor – to complete a 1003 and collect a full doc loan package from a customer (instead of paying an LO $$$$ thousands for the same thing).

Some of you know, I have a fundimental difference with many people in our industry, and that is "they" think it’s wise to pay out hundreds of thousands of dollars (in some cases) to Loan Officers to complete this task … while for my first 13 years in this industry working for The Mother Company, I used to hire and train utility type (processors) personnel – 18+ year old high school graduates. They did that task perfectly well for that 13 years, the 60 years before I started there, and the 25 years after that I operated by own company this way. Spend money on Advertising and salaried Green newbie processor types instead of giving it to LO’s and their ‘attitudes.’ WHY? Because it’s NOT selling, it’s more like ‘solve a problem’ or ‘help the customer make a decision!’

I’m enjoying doing this one very much, it will end up being one on one – me and some young gal somewhere via webinar, who will dazzle her boss after an hour. I’ll be proud of her and she’ll be pround too. That boss will become a believer too!

I won’t bother you with percentages or stats (although I can document/verify these remarks – and you know I can) , this time YOU do the math, OK? So follow this ….

Most homeowners in America today have Fannie/Freddie quality credit files, can go full doc and DTI, most of them already have mortgages (I think I remember like nationally average 50% LTVs), so plenty of equity. ALL of those with mortgages have rates higher than you can get for them today (let alone what you can get for them during the next 30 days – so FLOAT and don’t LOCK them).  More applications from borrowers were submitted for re-fi’s (some for purchases too also) during the last 2 weeks than in several years – ’causes rates are Low right TODAY. Most Mortgage Brokers and Mortgage Bankers do/like ‘conforming’ since it’s a simple easy process anybody can learn (taking an app and collecting a full doc package from applicants). We can train your green/newbie processors in one hour how to do it – get the details here ….

Now the Math question, how much $$$$$$ are you going to invest tomorrow in Advertising to let the public know YOU have access to the Government’s checkbook (via Fannie/Freddie products); and how much money are you willing to happily pay salaried processors to replace your high commissoned LO’s while you’re at it?

PS: We’ve got FIVE different Government programs out there from Public Law. 110-289 to help, besides TARP and now this … if you missed this newspiece yesterday, then YOU need an attitude adjustment – YOU need to learn your trade better … stay up with events or die!

Treasury MBS Plan’s Goal: A 4.5% 30-year FRM

"In an attempt to spark a housing recovery the Treasury Department is working on a plan that ultimately could lead to a 4.5% 30-year fixed rate loan for consumers. According to combined news reports breaking Thursday morning, Treasury would be the ultimate buyer of mortgage-backed securities that yield 4.5%. Over the past two days 30-year ‘A’ paper loans were yielding just over 6%. The bonds would be backed by newly originated loans that would be used by homebuyers to purchase new or existing homes. The Department would buy guaranteed MBS from Fannie Mae or Freddie Mac. The loans would meet underwriting criteria of the two GSEs and the Federal Housing Administration."

Now … get back to work, we need you making a nice living so you can access lots of our educational and training offerings.