Monthly Archives: May 2019

Mortgage guidelines, Mortgage Originators

Thursdays Thoughts – Lender for Life Mentality – MI Cancellation!

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#ThursdaysThoughts – Lender for life mentality and MI Cancellation.  Did you know Fannie Mae just did an update on the 15th of this month (May, 2019) that authorizes any servicer to “Solicit” your client for MI Cancellation based on on original value!?

As a reminder there is two ways a conventional loans PMI (Private Mortgage Insurance) can be eliminated.  One is borrower requested cancellation of MI, and the other is lender initiated cancellation of MI.  Typically, lender initiated cancellation of MI occurs when the amortization schedule reaches 78% LTV.  (however I think guides have been updated on this and might be 80% now) This is all based on original value of the home weather 3 years ago, or 7 years ago based on the original amortization schedule of their loan.  The other way is borrower initiated cancellation of MI.  Which can be based on original value as well as new appraised value.

It’s an eye opener that Fannie Mae is basically giving “permission” for servicers retail departments to solicit your borrower.  Fact is they have.  It’s in the announcement on the 15th.  So as an LO, it’s your job to view the transactions to be a “LENDER FOR LIFE” and have that mentality to help your clients many times not just one.  The average consumer does 7-10 mortgages in their life time.  Not to mention kids buying homes.  So it’s your responsibility to be that person to follow up, don’t just send them a thank you card and or follow up for a year afterwards.  It has to be something you do “forever” to help that client.

Today I provide two solutions to do just that, one a service you can input your past clients in to monitor when ever they are looking for a mortgage.  You get a trigger lead, and there’s multiple levels of follow marketing that can go with this.  It’s “Retain Your Client” also known as Stikkum.  CLICK HERE for the trigger lead follow up!

The second solution is a CRM that has follow up campaigns developed for you, and is phenomenal in helping you vet leads to find those action takers.  This can and is a must in the mortgage world to have a customer relationship management software that helps you stay in front of your past clients, current clients, and prospects.  It’s your responsibility to take that #Lender4Life mentality to help your own clients.   CLICK HERE for the LO’s CRM!

The last thing you want is some servicer calling your client to “solicit” them into another loan without you.

As Always –

#SellWell

Mortgage Originators

Whacked Out Wednesday – Rule of 36

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#WhackedOutWednesday – Rule of 36!  Too bad many are not taught some of these finance 101 philosophies or should I say standards.  There’s a common misconception to finance we (all in mortgage industry) should help consumers understand.  The rule of 36 is that you recoup your costs, or gain an ROI in 36 months or less.  This pretty much goes with everything.

If you take money out of your 401k and have to pay it back, then make sure you are done with that payback in 36 months.  If you have to pay costs inside of a loan or out of pocket, you should see some ROI or recoup-ment of costs inside of 36 months.  Weather that comes from appreciation and equity position, or that comes from saving money monthly.  That savings should help you recoup the costs inside of 36 months.

General rule of thumb, is that you should not be including the escrow/impound account you get back from your old lender, nor should you be counting the monthly payment that you skip when you refinance.  (interest is paid in arrears people).  However, all of that should be part of your “benefit sandwich” that is explained to a client.  This concept, standard or philosophy of the rule of 36 applies to a lot.  If you put your money “into” something you should see a return on your investment inside of 36 months.  (3 years)   In the mortgage world this is standard in many cases to prove a worthy and justified case to refinance.  Called a net benefit.

In some loans such as VA IRRRL’s (VA loan – Interest Rate Reduction Refinance Loan) and FHA streamlines these loans enforce a net tangible benefit for the client.  They must lower rates by a certain percentage, save x dollars or recoup costs inside of 3 years.  For the average consumer this concept may not be understood.  But in the mortgage world it happens all the time where LO’s attempt to complete loans that make no financial sense for the consumer.  Make sure your loans make sense and do the right thing.  Otherwise it’s called equity striping.

As Always –

#SellWell

Mortgage Originators

Two for Tuesday – Business & Passions!

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#TwoforTuesday – Business & Passions!  There’s a lot of “shiny” objects in this mortgage space, and it’s important for any originator or AE to follow their passions.  If you do business with a passion it shows and others will find common grounds with you.  You won’t have to sell so much and find common grounds with “them”.

For example, the LO that loves bicycling and endorses it, or the LO that loves Tennis and details it, or the LO that loves long horns and documents experiences.  It’s funny but these are real, and the biggest said performers in almost all sales industries follow a passion of some sort and dash a little business in it.  Bottom line, you must follow your heart, you passions and have a want to help people in the mortgage industry.  (many industries if not all) 🙂

In all of my endeavors if I lost my passion for it I could totally tell and it showed.  Don’t become stagnant and not strive for change.  Make yourself grow by investing in yourself to continue your education, or learn more about what you are passionate about.  And then share it with others and find those that have common interests to do business with.  It will make “what you do” more enjoyable.  You have to ignite your own fire within.

Follow your passions and make impact to those you meet doing so, and those that watch your journey.  It really is important that what you do makes you jump out of bed in the am.  If you don’t have that passion about what you do, do something about it.  My suggestion could be picking up a new hobby or following a passion to do something along side of what you do now.  May it be a side gig or just an after-work activity that fuels a fire inside you.  What ever you do, make that fire burn and things will change!

As Always –

#SellWell

Mortgage guidelines, Mortgage Originators

Weekend Call 2 Action – New 1003 Wrap UP!!

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#WeekendCall2Action – New 1003 Wrap up!! This weeks been great in breaking down the NEW 1003!  My advice is absolutely to embrace this as soon as it comes out!  My ending thoughts is this will help LO’s ensure they are asking the right questions during the 1003 stage of a loan!

I absolutely love ♥ this new 1003, and think for those that fill it in completely will gain better results in DU and LP as a result.  I love love ♥ the fact it asks if the borrower is a Veteran, and see how the charted flow will help not only interpretation of the risk profile, but show options to assets & income that sometimes LO’s may not be asking.  Overall, this is 100% a healthy change for our industry.  My suggestion, get to know it now, and you can see it HERE.  #KnowYourCraft

I’m in the office taking “I gotta guy” questions and turning scenarios into loans.  Why not yours?? #GetOnPoint with #BluePointMtg – CLICK HERE!

As Always –

#SellWell

Mortgage guidelines, Mortgage Originators

Thursdays Thoughts – New 1003 Week – Sections 5-6-7-8!

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#ThursdaysThoughts – New 1003 Week! Today we wrap up the 1003 breakdown we’ve been doing all week and tomorrow I will do a compare contrast and point out the highlights I believe everyone should pay attention too.  This has been great breaking it down each day to help LO’s understand the new 1003.

Section 5 is the declaration question section, and is basically all brand new.  The current 1003 has 10 questions, the new one has 16!  Comparing the two, there’s 3 question on the current dec section that are not even asked, because they are asked elsewhere on the 1003, and then the new 1003 has 9 new questions a LO must ask.  This section is broken down into two, 5a, and 5b.  About this property and your money for this loan, and about your finances.

1003Section5a

And Section 5b ↓

1003Section5b

Section 6 is all about the legal acknowledgements and agreements with doing a home loan.  It breaks down 6 areas of legal verbiage for the client to sign off on.  AND there is two signature lines on the primary borrower’s 1003!  (Tomorrow I go over this)

1003Section6

Next up on the 1003 is the very familiar Demographic information page section 7. This is identical to what we have now on the current 1003, I see no evident changes.

1003Section7

The last section of the 1003 is section 8.  The Loan Origination information section.  And this contains all the same information as on the current 1003 just the the order of which it is portrayed has changed.  The company is now first, versus the LO information.

1003Section8

And of course on the last page of the 1003, the borrower’s name goes on the bottom left that coincides with the 1003 of that borrower.  I like the flow overall, and there are some new sections, new questions and better information gathered as a whole on this new 1003.  I think it takes a lot of the “holes” on the existing 1003 and makes it stand out as questions on the new one.  KNOW YOUR CRAFT inside and out.  This is a major change and I believe most LO’s are just now starting to take a look at this new one.

Now it’s time to get more loans!  #GetOnPoint with #BluePointMtg!

As Always –

#SellWell

 

 

 

Mortgage guidelines, Mortgage Originators

Wednesday’s Wisdom – New 1003 Week – Section 3 & 4

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#WednesdaysWisdom – It’s the New 1003 Week – Section 3 & 4 are broken down today! I have to say I really like the “chart” format to every section of the 1003 as I see it.  It will require LO’s to ask more questions, and common things missed are listed as questions.  I like it a lot.  Today we start with section 3 and is the REO section.  The instructions at the top of page 4 are just as the other sections, very easy to read and spell out what’s needed.

Section 3 starts off with the REO section of the home being refinanced first.  (and is in bold) Otherwish if you do not own any Real Estate, check the box!

1003Section3a

Section 3b is a continuation of the REO section for other properties, and so is 3C.  Very simple page 5 of the new 1003, and is to detail REO’s owned.

1003Section3b

1003Section3c

And of course at the bottom of page 4 you have the borrower’s name the information is associated too!  Now page 5 Section 4, the loan and property information.   Again I like how it starts off and is self explanatory for instructions.  The newest thing on here is a FOURTH option for occupancy.  And then the 2 questions at the bottom of the first chart.

1003Section4a

Then section 4b breaks down other loans on the property they are buying or refinancing.  This includes seconds, hard money, or seller carry backs.

1003Section4b

Section 4c breaks down rental income and would be filled in on any home that is a 2 unit or more.  Primary or investment to indicate the expected monthly rental income.  No you do not take 75% in this section, that the underwriter would do in their section for this, just list the full rent expected to be received.

1003Section4c

The final section on page 5 is the break down on gifts for the transaction.  I like the new 1003 in that it highlights the often missed items on the current 1003 now.  This also is put together in a chart like format and gives examples, it’s like selling for LO’s.  What a great reminder too.

1003Section4d

And guess what’s at the bottom of page 5?  You bet the borrower’s name at the bottom left that the information is applied too.  I love this new 1003 and the more I analyze it the more I see how it brings to life the issues we have in loans and makes it more transparent for underwriting.

Ok, as I stated in today’s video, I’m in the office taking “I gotta guy” questions to help you bring a 1003 to life!

As Always –

#SellWell

Mortgage guidelines, Mortgage Originators

Two 4 Tuesday – New 1003 Week – Section 2

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#Two4Tuesday – New 1003 Week – Today we break down section 2 of the new 1003! The flow of the URLA (Universal Residential Loan Application) has definitely changed.  But for the better, the instructions are more clear at the top of each page, and information flows nicely in each “charted” section for the borrower.  One thing that sticks out to me the most, is the “lists” of items and examples at the top of each charted section, is a great minder to all sales people what types of assets, liabilities, etc there may be.

Section 2 starts off with a nice instructional sentence at the top and moves right into assets first to list the total of value for that section.  Again note the lists that this chart shows.  Great sales tool in my opinion.

1003Section2a

The section 2b is new, and is a great itemization to some of the most commonly missed items on the old 1003.  It points out “Other Assets” you have such as an EMD already in escrow, or sweat equity or rent credits or proceeds from a sale of a home.  See again the list above the chart.  Great section to be on the 1003 and good new edition.

1003Section2b

Section 2c is the start for Liabilities and again I like the “chart look”.  What’s interesting is that Real Estate is excluded in this section specifically and you are to list all items as debts except mortgages in this section.  I wonder how the LOS systems out there will transfer over the debts into this form.

1003Section2c

Page 3 is all Section 2, and ends with the “other liabilities” that are often missed to disclose, such as Alimony or Child Support, separate maintenance etc.  What sticks out to me again is the name at the bottom of the page 3 that identifies who is the borrower on this application.  Their name is to be there so the underwriters know which 1003 belongs to who.

1003Section2d

As indicated yesterday there are a few extra forms on the application now.  In fact a second borrower has a complete separate application identified just for them.  You can see the identification of “Additional Borrower” on the 1003 for any co-borrower on a loan now at the bottom of all pages.  (where their name goes too) Another is the unmarried addendum that is needed if they selected unmarried and then a part of the 1003 that is actually filled out by the lender!

1003Additionalborrower

And the additional addendum for those that select unmarried in section 1.  ↓

1003unmarriedaddendum

I like the flow so far, but what it means in reality is the LO has to have more “apps” taken.  Meaning there is more forms to fill out a home loan application.  And more specific questions that need to asked and are pointed out inside the application in various sections.  Even a portion filled out by the lender.  Quite unique.  I would have these printed for the first several and go through them the long hand way to learn the new changes.  But that’s just me.

As I always indicate, being a master of your own craft starts with the heart of the transaction, which is what underwriters verify information off of, the 1003.  All LO’s need to know this like the back of their hand.

As Always –

#SellWell

Mortgage guidelines, Mortgage Originators

Monday’s Motivation – NEW 1003 Week!!

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#MondaysMotivation – NEW 1003 Week!! – We are less than two months away from July 2019 when the new 1003 becomes optional.  ARE YOU READY?  Have you looked at it, and do you understand the new stuff on it, or the things that stick out that changed?  Actually section 1 is completely new! And this week we will go through each section and highlight the changes, what’s new, and how it applies to your new process of taking an application.

Today I will break down section 1, and provide my synopsis and point out differences and note-able changes.  The biggest change is mulitple people are NOT on 1 application even if married.  Only 1 person is.  Every person fills out an application and then on the application there is a place to list other borrowers applying for this loan.  (however they need to fill out a separate 1003)  Again the 1003 claims only 1 social security number and date of birth for “the borrower” on it.  And lists the names and total number of borrowers for the loan.

1003Section1a

The same flow as the current 1003, just a different look and feel.  The second major area on page 1, section 1a is the current address section.  Much like the current 1003, the rule of having 2 YEARS HISTORY for EVERYTHING is pointed out.  (most commonly missed thing for 1003’s) I love the military declaration section, and it’s interesting they added the new section for the primary language preference.  Biggest notable is the radio button options for No Primary Housing Expense, and or Rent or Own.  And to the right is an area to identify how much.  Check it out ↓

1003Section1a2

Page 2 starts off with income section, and is considered section 1b.  The main thing I like is the fact there is a flow for listing the job and then the amount at that job on the same place on 1003.  Must like the current address and amount of that housing expense, this lists the job/self employment and that amount they make.  If self employed that box is at the bottom left instead of top right, and has a declaration section for ownership that is new.  Then a separate place to indicate income from self employment income.  Over the right “gross monthly” income is broken down for those employed only, such as base, OT, Bonus, Commission, or Military income and or other.  Also note-able is the “statement” box dead smack in the middle of this area.  If they are employed by some party involved in the transaction it must be identified.

1003Section1b

The next section “if applicable” is for additional income.  Meaning someone whom has two jobs for example.  This is the section for that. ↓

1003Section1c

Next up is the PREVIOUS employment section, again “if applicable” and current employment is less than 2 years.  Note-able in this section is the fact on previous employment the client must provide previous monthly gross and identify if self employed.  Known as section 1d.

1003Section1d

In the last section on page two, and rounding off section 1 of the new 1003 is section 1e.  This identifies all “other” income.  And the way it’s portrayed is a great reminder for LO’s to see as it lists all the other income types to remind you to ask.

1003Section1e

Proceeding that at the way bottom left there is a line on page 2 at the bottom that identifies which client’s 1003 work information you would be looking at.  I can see this one of those lines that drives LO’s nuts and is constantly left blank.  This is why each person has a separate 1003 now.  So even if they are married, just as section says at the top, you are identifying if that application is a “joint” or individually.  And if with other’s you list the total number and names of all other’s that would have a separate 1003 associated with the transaction.  Here’s a snip of the bottom of page 2.  Get to know it is my opinion.  🙂

1003Section1page2

As always – #GetOnPoint with your own craft and know the 1003 like the back of your hand.

#SellWell

Mortgage Originators

Weekend Call 2 Action – Follow up Friday!

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#WeekendCall2Action – Super excited to announce #FollowUpFriday today! It’s the secret sauce to gaining loans.  Follow up is the weakest point of most sales pros but is the most crucial in converting “Leads” into customers.  Most people fail because they are only reaching out one way.  The phone.  If you’ve been in groups or mortgage sales any length of time you will know the biggest question in our industry is – What’s the best CRM?  A true customer relationship management software designed to actually assist you in following up with your leads has been the question of the decade!

As “lead gen” has evolved the options to use such as text, email, ringless voice mail, click to dial were all features one or more CRM would have, but not all of these functions.  Typically you would need to embed multiple systems in order to have the best complete package!  WAIT NO MORE!  A solution has been made!  Please WELCOME the newest edition of the JUICY list (Join Us In Creating Yes’s) for #FUBots!

A CRM with all these functions and more.  Dashboards like messenger, ring-less VM, text, email, click to dial, and follow up scripts all built in.  No more hiring someone to write your “copy”.  It’s all tried and true and updated to be the most effective follow up campaigns to vet your NEW and OLD leads.  Work with a CRM designed to help you do what you do best – SELL.  And do it to people responding to the Follow Up CRM bots that are deployed to attack your leads!! ↓

Super excited to announce the newest edition of the #JUICYList today as a CRM.  The missing element in a well rounded LO growth plan.  This is in beta stages now and the costs for “other systems” that make up what #FUBots does would costs you over 400 dollars per month.  GET FOLLOW UP BOTS CRM HERE!

I’m all about having a well rounded plan of attack to help LO’s gain business, learn to do loans, and then send them to my #WholesaleLender to #GetOnPoint and CLOSE!  #GetOnPoint with #BluePointMtg and let’s close the apps you take from this!

As Always –

#FollowUpWell

Mortgage Originators

Thursday’s Thoughts – Did you get the SKINNY?

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#ThursdaysThoughts – Did you get the #Skinny?  Yep the skinny package is what it’s called, and in the #WholesaleLending world many #MortgageBrokers have the choice to disclose to the borrower, or have the lender do it.  Many LO’s and Broker’s have the lender do it as it takes a level of compliance out of their hands.

We have a small package that contains 5 things that we call the Skinny package! Get the 411 on the skinny today! These are the 5 things I suggest to my broker partners to upload as the very first PDF inside a loan.  Then typically the other 190 page PDF comes in with the all the supporting documents.  LOL.  Put your loan in queue to be disclosed today!  Upload the #Skinny! ↓

We want to provide options for our business partners, and giving them the choice to disclose or to have #BluePointMtg disclose for them is one! We have a list of over 25 AMC’s to choose from for appraisals.  We can choose to send out a CD early, choose to change a compensation plan monthly, choose to be borrower paid or Lender Paid. (and change them in the loan) My point – #GetOnPoint with #BluePointMtg.  We close loans that’s the point!  Here’s a link to the Skinny – CLICK HERE to get signed up!

As Always – I’m in the office taking “I gotta guy” questions and turning scenarios into loans!  Why not yours?  🙂

#SellWell