Motivational Monday – Video and My virtual Business Card.
This week’s motivation is to use your CRM to it’s fullest potential, make notes, log calls, fill in birthday’s and record interests. You will get out of it what you put into it.
#signupforyourvirtualbusinesscardbelow
TGIF – The Grind Includes Friday’s… and the weekend. I do these weekend calls to action to share ways to source business and help LO’s everywhere. Mine are typically requiring you to get off your buttocks and do something… But every once and a while I’ll suggest to spend money on something to have a high rate of return. If your an LO, and you are not thinking about ways to STICK YOUR NECK OUT THERE, your missing the boat. You are in a big referral business, and the only way to succeed in the loan world is to open your mouth.
You gotta reach out and attempt to make contact. You have to build relationships everywhere. And with the recent turmoil on the MSA baloney I had mentioned how Builder’s are WIDE OPEN FOR THE TAKING. Mark my word, some LO that doesn’t care what others think is opening his/her mouth and networking with potential builders right now. It’s happening. And builders read my blog, trust me a ton of people did. I suggest you get out of your “comfort zone” and start networking with builders.
GAS STATIONS ARE HUGE. No joke every town has one. And every morning between the times of 5 am to like 9 am trucks full of construction workers stop at the Mom and Pop shop gas station and fill up on snack cakes and gatorade. No joke, they all have a sign on the side of the trucks they drive, it’s obvious. And you see them at stop lights all day during commutes. Shout out, ask them, “hey really quick, I’m interested to help to help you obtain more clients for home improvements.”. WHAT! You will catch an ear real fast. I’ve done it myself. And then say, “I get others looking for cash-out all the time to do home improvements and can refer you clients”. Just as they could potentially visit a clients home that is looking to do repairs or upgrades and then refer that client to you to solidify the money source.
This is out of the box thinking, however I paint the picture cause it’s as easy as that. Watch the video below, I have another opportunity I paint a picture for to help you LO’s on networking with builders. I would suggest again just sticking your neck out there and making a wave. Call a bunch of builders in town, start networking, linking with them on social media to start build a relationship. As the year goes on, check in, follow up, and if your half way good at sales I bet you get a bite. And some builder will refer you a client. It all starts with you taking action. This weekend, prepare yourself for Monday, make a list of builders to call and then take action. Nobody is forcing you to succeed… lol.. Hope you do that yourself.
Here’s the video;
Sell Well and have a great weekend.
New Videos start next week, so stay tuned.
#oldiebutgoodie
#mortgagejuicemanvault
-The Mortgage Juiceman
Remember that is what a mortgage is a “bond” that changes. You know rates go up and down. Well paint that picture. Painting the picture that to the client you send all the application too, they need to actually SIGN IT and SEND IT BACK… Rather quickly. It’s not a sit on it and analyze it type of thing for two weeks. You don’t ponder a mortgage decision on a refinance. A purchase ok take your time, when your ready come back to me and I’ll refer you a realtor with a pre-approval letter.
With Bonds or should I say mortgages there is a price associated on a LE that is sent in an environment of rates at a specific date in time. You and I know rates come out daily. Paint that picture, that fact that remains the exact price to the penny will not be the same exact price on the loan assuming it’s not locked at time of initial disclosures. That’s a fact and part of our industry. And why CREATING URGENCY is actually really easy in the mortgage business. I never understood why other originators wouldn’t get their “books” back. Book = Complete loan package SIGNED with supporting information needed. I remember a time in the call center days we would “ring” literally a bell on the floor to create excitement. Once a day I’d make it a goal to go over and ring that bell. lol.
You know it all came down to “painting the picture”. Shopper or not I stressed the fact that rates change daily and that either market (rising or lowering) that is link between the myth that what your promised and what a client gets are two different things. (in the mortgage industry) The majority of people who say that where promised something one day, held on to something too long, the rates changed and when they locked that price was different. They paid more for the same rate. ENTER the one call close, what we called “Same Day Service”
When I used “rocket” before it was known, I would take the app in a conversation, scrub their credit, and “rocket” the loan for decision inside of 40 minutes most of the time. I would give that client a consultative approach to solutions for their need, whatever it was. I always dug deep. And when the time came to push the buttons to generate the docs, I would offer a special same day discount of some sort. All they needed to do was allow me to explain the docs one by one to them. Which I did, I walked clients through each form, told them which lending law associated with each document, and then had them sign it. Right on the phone. And afterward I would attempt to offer to lock the loan in, if they could send me the supporting docs same day. Boom 1 out of 10 would do it. Most people I would call in the morning. Paint the picture of importance to get the book back, push the bruise (the why they are doing this to begin with, remember I dug deep) and gain a commitment on a time I would have it back by.
My ratios ended up being that 80% of the people hold on to the docs 24 hours or less and really do move to get supporting docs rather quickly. 10% ended up shopping and out of that approximately 2% would come back to me and say, I totally understand now. The teeter tooter effect of price and cost and how they relate they either understood better and or trusted me. And would do business. The rest was same day or not at all. Win some lose some.
Today originators do TWO things for me. First place a big sign in front of you that says S W to the 3rd power. SW3. Some Will, Some Won’t, So What NEXT. And try today to take as many applications all the way to “book back” in one call. Achieve Same Day Service.
If you’ve done SAME DAY SERVICE, like the article.
Happy Origination’s.
#Igotaguyquestionsaremyfavorite
#hitmeupwithanyguidelinequestions
100-4-1
100 calls 4 credits 1 deal
Yep there coming back, and next week the new video’s start. Want to see a cheat sheet for DTI associated with FHA loans. Click the link below. While I made the video a year ago, the same concepts still apply. Plus DU was just reprogrammed again. Give your feedback on what DTI is giving as results, is it more sensitive to DTI in 2017 already? QM exemption is coming to an end for GSE’s. And during the Trump reign we’ll see GSE’s have to conform to the 43% rule. Remember they were only exempt for 7 years when it all started. That means more scrutiny to DTI in the near future. Great idea to start conforming and not just over extending your pre-approval letters to the max. Make it so clients can buy a house and live. #ThemortgageJuiceman
#TwoforTuesday
You know what’s funny. Is I’ve done this several times in my professional marketing and sales career where I just totally “burst” with success as a result of my actions. Like the feeling of that first sales job where you put your head down and have a burst of energy that leads to your launch. Whatever, launch that may be. It’s absolutely like an airplane taking off. That arch of a half pipe in the X games. A burst of energy is what launches you.
From recruiting to sales in B2B where that relationship is based on a reoccurring sale and service provided, the bulk of your “business” pipeline is broken down to a handful of prime accounts. The 80/20 rule. 80% of the business is generated by 20% of the accounts. Same with the source of where that business is coming from. 80% of the business is generated by the top 20% of the sales force. So what makes the difference?
Speed! I am sure of it. If you know me I’m the guy you would think is drinking red bull all day. Totally a “BURST” of energy. Especially when starting something new or beginning a new marketing campaign. I used to love when a mortgage company would come out with something new. I remember being in several positions when the “product” just came out. And the “burst” of energy upfront from all the sales people generated a lot of momentum.
That is called “taking off”. The arch I was talking about. And if you come in to win it like it’s your first 30-60-90 days and really put forth effort. You will see some form of success. Success gravitates toward Speed. And if you apply this to your ventures, your marketing strategy, culture and sales efforts, you will see success.
Not long ago I had a big “burst” of energy where I signed up a bunch of wholesale accounts all at once. Then that burst helped me service those accounts and generate a revolving 20-30 Million dollar pipeline monthly. What made me sustain that success over longer periods of time than most is that energy I would turn on and off. Like an airplane, you back off the throttle when you get to a certain point and then service it. Even put it on autopilot. lol Means alot in that analogy with today’s auto-responders. As I look back at it, it was a small, 30-60-90 day plan that I kept pushing myself to do. I used to write quarterly reports and in it always placed my schedule. I blocked my time. And each quarter I shifted WHERE I HAD MY ENERGY SPENT. I spent time focusing on training others at certain segments in time in both my retail and wholesale experience. I spent certain times focused soley on continued education or expanding my product knowledge. I spent certain time focusing on prospecting and at certain times was sourcing additional business. By doing this in little bursts of energy and focus on different aspects of my business, I was always one of the most consistent guys. Maybe not 1 or 2, but always in the top 10 or 20 in production and falling into the top 20% tier. In all of the sales I’ve done. Analyzing how I did it, made me realize, it was a consistent drive of “bursts” of energy on any one focus in my business.
Speed generates success, when success is gravitating towards speed. When that burst is diversified to accompany various aspects of whatever you do. Over as period of time, that 30 day plan to work on one aspect is a bigger 60 day plan that comes to life. And the final 90 days of that period is where you would identify as the launch. I bet most reading this that are top performers can relate to what I’m saying. They can remember a “burst” of activity they did at one time or another that generates 80% of their business or relationships. Funny I’ve done this same thing when I originated loans. I look back at all the times there was any awards won or testimonials or stories that stick out in my sales career. In each that I remember there was a “burst” or take off moment that is momentum that creates more momentum. The saying the best time to sell something is when you just sold something. Couldn’t be more true for most sales people. Just some fail to bring that energy when it would’ve counted. They never “launched”. And in the cases where I sold the most and saw the most success I can always remember an energy about me. So I try to come with it daily. He we are on the last day of Jan 2017, you going to have momentum to burst into February? How bout your goals this month, did you put in enough energy to hit them?
Mr Motivator today
The JUICE is Loose
-The Mortgage Juiceman
Funny I made this video over a year ago, and still applies today for sure. The Mortgage JUICE is flowing all day, let’s connect as I have options that can help you close more loans. My passion, excitement and purpose is to help others daily, why not have additional options to close more loans…Persistence and Taxes the two things we have to have done.
We all do, as all change should be viewed as good, and should be embraced. I have some great news for my business partners, and anyone originating mortgage loans. I have partnered with a new wholesale lender that offers a WAVE of new products on the NON QM market side, and provide all the agency loans your used too with NO OVERLAYS!!.
Manual underwriting and manufactured properties available on all products. Even a 1st/2nd combo (Double WAVE) loan that goes up to 1,125,000. NO DOC investor loans are back, up to 75% LTV. 1 Year self employed program, and 12-24 month BANK STATEMENT programs are available. A 70% LTV Foreign National program, and a program that requires NO SEASONING on BK’s/Foreclosures and Short Sales. WOW! And the list goes on…
85% LTV with a 560 FICO up to 2 Million. Yep your reading this right. THE LOAN WORLD IS ABOUT TO GET JUICY! A program that allows for 60% LTV on loan amounts greater than 1 Million with a 500 FICO! Did I mention 80% LTV on a non owner occupied home with 12 month Bank Statements? Up to 2 Million. There is even a program up to 90% LTV on a bank statement program available.
In all my missions I have in life I carry the passion and excitement to help others. This specifically helps me partner with Broker’s and relationships I’ve had for over a decade in this industry. The Mortgage Juice is flowing, come Join Us In Creating Excitement. Accepting resumes for sales candidates and Broker packages now!!
I can’t wait to help you close more loans. Happy Originations – The Juiceman
I’m back Jack, and will do my best to serve the wonderful community of Mortgage pro’s every where in 2017 and beyond. As I always have I’ve come with passion, excitement and the inherent feeling of success in helping others succeed. I’ve been blessed in so many ways in this wonderful mortgage industry for over a decade now. What I know is I have created a band, a following of BAD ASS LO’s that seek guidance and help on deals. I became known as a go to guy and always kept it real. If I don’t know something I will find out. I set the expectations correct, and deliver for my mortgage partners. And I always surrounded myself with others that looked to do the same. In the last 10 months I’ve been challenged and created more for myself than imagined. And now it’s time to share.
Expect videos, my youtube channel is coming back, we will do Motivational Monday, Two for Tuesday (guideline tricks) and Whacked out Wednesday (mortgage pains and how to avoid them), to Thankful Thursday and TGIF again. I am on a mission to grow a mortgage group of badassery for loan originators to over 10,000 people by the end of the year. On Facebook that group is called; Sales Talk with Mortgage Pro’s. Come join in on the fun. I have some heavy hitters in there that offer training, to tools and success stories to help you get more deals. I have a file folder with scripts to condo cheat sheets and much more. It’s a community of people who are on a mission to help others with the biggest purchase they have.
RE agents, lead buy companies, credit repair guru’s, commercial leads, CRM companies, mortgage education, CPA’s, insurance pro’s you name it. We have a great foundation with over 2500 people in there now. Come Join Us In Creating Excitement (JUICE) and let’s help as many homeowners as possible.
Follow “The Mortgage Juiceman” for the latest industry guidelines, tips and tricks. I look forward to serving you, the industry leaders as we embark another year full of change.
Got ideas or topics you want to see written about. Feel free to comment.
Shawn -“the mortgage Juiceman” for life – Devlin.
Well here we go again, DU is about to be updated again in June this year from what I hear. Again we see the implementation of QM rules into the approval engine. Ever notice how every 6 months or less now, DU is being updated? Let me explain why again.
QM is making all loans backed by the Government Sponsored Entities eventually be 43% DTI too. They were/are just exempt from that rule for 7 years. It will be hard to fathom for some that do FHA/VA loans at north of 50% DTI all the time, that they will be capped at 43% in a very short time. QM is half way through that 7 year period. And every time DU is updated it is lowering the risk thresholds on DTI. Ever notice that?
Well there’s more to the story. In the next two years mark my word. Correspondent “Lenders” are going to be regulated heavily. More and more “skin in the game” reserve requirements will come to the land of mortgage lending. It will more than likely require a fraction of a fraction of the overall business generated and funded monthly to be kept as reserves by that mortgage company. More regulation for compliance of those “mini-correspondents” of the world will force them back to the “broker world”. I see this trend now, more correspondents are going back to “brokering” to avoid compliance tasks. There was a trend in emerging correspondent lenders since 2010, and now that the disclosures are the same on the front end as banks, that trend I see reversing itself as new regulations come to play in the next few years. Yeah, you can still make front end and back end, but you still have to be at 3% total QM fees. This is what I see happening, and of course not factual yet I do not think. If your not closing north of ten million on your own lines per month it may not be worth it. The dollar amount in fees and interest just to use the line makes it that your break even point may be around that same 2.75% that could be “brokered”. Heck that break even point may be a higher funded volume. And if new laws come to play that make a mini-correspondent hold more skin in the game as reserves, that extra “monies” is going to have to be held.
Now the third point. The 3% rule. I see it all day just because I do the math in my head so fast. But LO’s you need to do this too. For example, know what goes INTO the QM and then do the “math backwards”. Commission, Underwriting fees, Points (unless bona-fide), Affiliated arrangement profit. So if you are not affiliated with any AMC etc, and you “waive” or “buy out” the underwriting fee, then the only two things to LOOK at would be your compensation plan plus any points if any. Now you can bona-fide 1 discount point if you have a rate that isn’t the top rate on the rate sheet or the bottom rate on the rate sheet. Important to remember. So if you are lending at 2.75% comp plan, and you have a final price of 97.5 after all add-on’s, you ARE going to run into an issue. 2.75% plus one bona-fide point would put you at 99 net pricing, and you would only have about a .25 or so left. Not even. So at that rate you could be at about 98.85 based on my estimation buying out the underwriting fee, charging 2.75% and bona-fide one discount point. NOT 97.5% on final net pricing. Do the math when you lock. Just cause the the rate’s on the rate sheet in most cases you can’t even offer that rate with a 2.75% comp plan and still pass QM 3% rule. Know this in advance.
Here’s an insert from an article that quotes the concepts I was mentioning, made in JAN 10th 2013….CFPB Releases Final Rule on Ability to Repay, Leaves Back Door Open on DTI
“CFPB concedes there are instances where a debt-to-income ratio above 43 percent may be appropriate based on individual circumstances but believes these loans should be evaluated on a case-by-case basis under the ability-to-repay criteria rather than with a blanket presumption. Given the fragile state of the mortgage market however CFPB is concerned that creditors may initially be reluctant to make loans that are not qualified mortgages, even though they are responsibly underwritten. The final rule therefore provides for a second, temporary category of qualified mortgages with more flexible underwriting requirements so long as they satisfy the general product prerequisites for a qualified mortgage and are also eligible to be purchased, guaranteed or insured by the GSEs (while under conservatorship), HUD, The VA, or The USDA. This temporary provision will phase out as these agencies issue their own qualified mortgage rules, if GSE conservatorship ends, and in any event after seven years.”
QM Simplified
Sell Well – JUICEMAN
A Broker in Cali, that I have in my network asks me today;
How does TRID really affect me and what do I really need to know?
My answer is 3 parts of importance for you to know on how it changes the way the Mortgage Broker does business now.
1. The way Broker’s can switch lenders in doing business now changes. The thing to know is the GFE and the TIL are combined. So the fact the GFE isn’t signed now and it’s easy for brokers to “switch” lenders will change. You will now need to “create” a new GFE if you are switching lenders assuming comp plans are different or the fee’s are different. Then the borrower would need to sign that new LE (Loan Estimate). **re-post notes. This is why the “Broker is bouncing back”. The new disclosures level the playing field and Bank and Broker disclosures in the initial LE all look the same. More and more rules are coming that will make more “mini-correspondents” have more reserves and mandate licensing etc if they “lend”. Even more compliance laws to roll out in the next two years is what I see. Why being a “wholesale Broker” is the way to go. More new business starting daily.
2. The Tolerance items on the GFE as it is now are changing. This could be a big movement in the industry. And we could see “more” upfront fees on LE than we do on the GFE now a days. The shopper will have a handle on Brokers that go skinny in the fees. You know how the transfer taxes and owners title are a “ZERO Tolerance” item…. well guess what that section of the “LE” or new GFE if you will, is changing to include more items. Pretty much all the items in box 3 right now. What that entails is the Credit Report fees, the Appraisal fees, Tax Service fees, Flood Cert fees. So, better make a new BEST PRACTICE as a Loan Originator in my opinion. At the beginning you should disclose the cost of an appraisal and 1004D upfront at least. Better disclose the credit report fee and at least two credit sups upfront. Hope to see Flood cert’s and Tax Service fees more common on the new LE as well. These would be mandatory to disclose in my mortgage company if I owned one. Because if your fee’s end up 1 dollar more we all know that the 1 dollar becomes a Broker cure on the difference and shorts your income. **re-post notes; This is why companies are hesitant to send out CD’s in advance of CTC. Continue to read 3.
3. The act that I preach now to all my network about “creating a HUD1” out of calyx or encompass after verifying fee’s is going to be a big deal. At the end of the process under TRID there is a new disclosure called the CD (Closing Disclosure) that goes out and you have to wait 3 days from acknowledgement to get docs. SO, that means no last minute changes. About the time the loan is CTC’d Broker’s should be verifying fees from Title/Escrow and then having processors verify all those fees and structure with a HUD1 you create out of Calyx/Encompass/Byte etc. Again the point is changes will delay loans and burn locks. So it is important for all loan originators to adopt a new process that verifies structure and fees on a loan prior to closing. Like a week before. As the last conditions are sent in.
There are a few other changes Broker’s should know about, read about the full changes don’t go uneducated on how these changes will affect you. Happy Originations.
**Re-post notes; You still seeing the affect of TRID or are you closing loans fast again? If not call me I can help.
– JUICEMAN
The JUICEman! 