#ThursdaysThoughts – Some great guidelines this whole week we’ve had. Today’s installment I kept raw, a first take and said umm quite a bit. LOL. I want to encourage everyone I can to break out of their comfort zone and do a video, it doesn’t need to be perfect. This week we had a lot of videos to honor a LO that spread his wings. During this past Tuesday a TON of LO’s did video’s some for the first time. EVER.
The thing is, consistency gets you better at them, today I just winged it. First take and just minimal thought into it. Not my best one for sure, but what I want to reiterate towards others is that YOU can do this too. Create a market presence with video marketing in your area. It’s proven to work, and all my exposure is from organic videos, this blog, and my charismatic persona online. I don’t pay for ads, I don’t pay for anything but like 45 dollars for this domain yearly.
You can do this! NO JOKE! Oh, and the guidelines today are good too 🙂 I do go over EAD cards and what to do if there’s an expired one. Also I highlight an Investor Advantage loan that I have to offer you LO’s and Broker’s out there. Check it out below ↓
All you need to do is stick your neck out there and spread a message you believe in. There’s not really much to all this marketing stuff. Many just are afraid. I want to encourage each of you to try and try again. Do it consistently for 1 week, and you will see yourself evolve. – #SellWell (no link today) 🙂
#WhackedOutWednesday – This week we’ve discussed various compensation set ups, and ways a broker could have his LO’s paid. The “how to” on a borrower paid transaction is often a question I get. In reality there is a right and wrong way to price these out as a result of comp laws indicating that no credit on a borrower paid transaction can cover LO comp. Hence the “borrower paid” name. However, many LO’s and Broker’s get this wrong all the time. Today I wanted to break down the easiest way to structure these.
Step 1 on a borrower paid transaction is figuring out the total costs. You can’t in theory pick a rate until you know this “dollar amount”. Or at least close to it. So add up all your title, impound, government recording, flood certs, underwriting fees, appraisals, inspections and any and all 3rd party fees, upfront. Once you have a number go on to step 2.
Step 2, price the loan out with your lender as a borrower paid transaction. When looking at the credit for any given rate, it’s best to pick a rate that doesn’t “exceed” the total dollar amount in costs. You can be within a few grand at most, but the objective is to be as close as possible. Otherwise any 3rd party costs not covered by credit would need to be paid by the borrower or covered by concessions.
Step 3, input your commission. The point in many cases of doing a borrower paid transaction is to “lower” the compensation from your said “Lender Paid Compensation” (LPC) selection at any one lender. Many make the commission equal to or less than the actual costs on the loan. Which for the most part shadows the credit for the rate.
In a real life example, the total costs are 4200 on a loan (including impound set up) and the credit for the rate is 4000. Then the LO chooses to make 4000 and have the small left over 200 dollars from costs not covered by the credit. Making the total in costs on the loan 4200. Somewhat a rob Peter to pay Paul scenario, or “magic show” as I describe it. If you find you’re accurate in estimating costs upfront on a borrower paid transaction, you will be able to price and sell this type of loan to anyone. And WIN the deal with any shopper.
This week I am doing data entry into a CRM and expanding my Broker network big time. I would welcome helping you! If you own a Mortgage Brokerage or know someone that does, refer them to the JUICEman. I encourage others to Join Us In Creating Excitement about mortgages, and make this stuff fun. I look for great broker’s that want to excel at helping others with mortgage loans. As a wholesale AE, my role is to help facilitate these home loans to the closing table. I act as an intermediary between the LO/Broker and the underwriter and funding teams. The more accurate the 1003 and structure of the loan upfront, the faster loans close. Let’s do business together this year, in fact, you can “try before you sign up.” With great rates and 1 day turn times, we are poised to position ourselves to help many broker’s grow their business this year. Why not you? – Shoot me a message on Facebook, I’ll send you a rate sheet and submission form. You can experience our stellar service first hand and then sign up! #SellWell
#TwoforTuesday – Some great conversations happening out there recently and wanted to highlight some conversations recently about LO comp and Borrower paid transactions. Assuming you are a LO at a Broker shop, whom does TPO business, you still have to have a set compensation agreement for all loans. The Broker is allowed to incentivize you based on volume, however, for the most part you are to be paid the same amount on all deals. Borrower paid or Lender paid!
Now I am not a lawyer by any means, I just make sense out of these laws and attempt to spread the word. As an AE, no LO should be in a position where they “send” loans to any one lender to be brokered and be paid “more” for doing so. The LO should be picking the best lender for the given loan and borrowers situation. AND that doesn’t mean the lowest rate or highest spread. There’s customer service, there’s turn times, there’s a handful of other things that could be taken into consideration. Rate doesn’t dictate the “best option” for your client. Period.
Second point today, Borrower paid transactions. If you are a LO, and you have a set comp plan with a Broker, and decide to go borrower paid, you should still be “making” enough to cover that comp plan. OR the Broker should put a clause in their comp plan to LO’s that states they are not allowed to charge less than the agreed upon comp per deal. That way the “house” never has to pay out of pocket to pay the LO. That’s not good business obviously.
I am expanding and still helping new Broker’s in 2018 to grow their business. I am not a typical AE, what I do is help my broker’s actually source business. So not only do I help with guidelines, scenario’s and pushing your existing loans to the table, I help you learn to source new business. And I do it online, where I teach Broker’s how to expand their referral network, and help their business grow. More leads = More closings. If you’re struggling with business, or just happen to be on a mission to grow this year, I’d like to work with you. CLICK HERE and we can chat! #SellWell
#TwoforTuesday – This one is almost a year old as well. I ♥ guidelines. Funny a year later here we are accepting Bitcoin as a form of payment as well. This is back when verbal VOE’s were updated at the beginning of last year. Even a bonus guideline in this episode.
Look I do these for fun, to make our roles in the mortgage industry less stressful and to pass on best practices and helpful guidelines that you can use. What I do for a passion is help other people close more loans. I do this many ways, but it all comes back to my support staff. The team I have behind me. No matter what I do, I try to align myself with the best teams that can make an impact to your files. Second, I learn, invest, and master marketing campaigns that are successful to help you increase your business. And I have a 3 day workshop that can turn the way you view social selling completely around.
The Blueprint – Ultimate Facebook Fan page Marketing campaign guide. A three day workshop that will increase your reach, relevancy and results.
#TwoforTuesday – It’s tax time! As of yesterday, and “not” the time to call a CPA. However, what it is a good idea to do is educate your clients on how the way they itemize certain things can hinder their ability to borrow. Two things we will go over today to help you in sales, 2106 expenses and self employed filings. A CPA does their job well, sometimes too well. They lower the clients overall tax implications, but as a result they are affecting what the client will qualify for.
If you’re self employed, or your clients are, knowing certain line items is a good idea on taxes. Educate your clients so they can plan accordingly. If they are thinking they will do a new home loan within the next 2 years, it may be a good idea to skip writing off all the “meals and entertainment”. Same with those that are W2’d, itemizing deductions on line 21 of the 1040 will affect their “income qualification calculation”.
Knowing these little tid bits can make you seem like the expert. They are also good conversation starters after a first touch, during a follow up. Make yourself the NEWEST EDITION to your clients “financial team” by helping bridge the gap sometimes. When you do this and present to be the newest member, whom is a lender for life, your objections to “price” go away. Add value in building a custom tailored solution for your clients and you will be referred more. This education is a way to do it.
This week I am looking to partner with more Brokers in the East Coast. If you know a great mortgage broker in NC/SC/GA/NJ/PA/VA/MD please let them know about me. Fill in below! ↓
#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!
#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 ↓
#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:
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! ↓
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↓
#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;
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.
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)!
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.
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)
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.
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
The JUICEman! 