Rates
Well for the most part of this week we have seen rates improve, in some cases as much as .125 to .25 reduction of rates, and why.
Well there have been lots of economic reports coming out indicating the US economy is slowing down, now some are associating this with the winter weather we have been having. Which is logical?
But some are seeing a trend establishing of a slower economy, especially in manufacturing. I believe that next month’s reports are going to be key readings on whether or not the economy is slowing down or was it the weather.
If it is determining that the economy is slowing, watch for rates to continue to fall.
The 2nd factor is Ukraine, this is bring up a little good old fashion Cold War thoughts, and investors over in the EU are starting to put their money into safe US debt, as results, the US sold debt this week, and it was some of the best auctions of the year.
Watch this story closely, if we see Russia move troops into Ukraine, we could see more people flee EU investments and into safe US Debt.
Today we had rates worsen a little, but this is expected, we had some good economic reports come out along with a 6 day rally in rates which makes be believe traders are going to take some profits off the table.
March will be a critical month, with unemployment coming out on 3/7, and economic reports throughout the month that will see if the economy is truly slowing down or was it the weather.
I am going from neutral to a more of a locking stand point. Although next week I think Monday and Tuesday will be flat, Wednesday will have ADP payroll and Friday will have unemployment numbers, so I suspect lots of volatility.
RD
Last week Rural Development updated their income Guidelines for all the counties, of our local counties, it looks like maximum income raised about $700.
And also Kuna is still RD, atleast until 9/30/2014, and then we play the Kuna in/Kuna out RD game again.
Link to RD flyer here: http://goo.gl/vlTaHw
Loan officer licenses for Banks.
Did you know, Bank LO’s do not have to go through all the rigorous licensing that other lender LO’s have to do.
Well looks like the CFPB is going to put an end to that, which is great.
Currently, we have to take:
20 hours of pre licensing
10 hours of continuing ed each year, yearly
Criminal Back Ground Check, yearly
Financial fitness check, yearly
Credit report check, yearly
And pass a State and Federal Test.
When this originally happened, many LO’s had to go to banks, because they don’t have as rigorous requirements, although they do, do a background check.
So you may see some of your favorite LO’s in banks become unemployed shortly, which is probably a good thing, do you really want someone who doesn’t pass their requirements working on loans for you?
CFPB and Realtors
Well not that I am hugely happy about it, but it looks like the CFPB is now focusing on other people rather than the mortgage industry.
FYI, if you took my IREC CE classes, I was warning about this last October.
Current industries getting the Heavy Hand of the CFPB:
-Payday loan companies
-Student Loan servicers
-Collection companies
-Realtors
What, did I say Realtors, yep, if you didn’t know the CFPB actually is YOUR regulatory authority also, and doom is coming, believe me, we have seen their wrath in the mortgage side.
Long & Foster is the 1st, of probably many Real Estate Companies, who will now be feeling the long arm of the law. They are getting fined because they were referring their clients to specific Title Companies, and getting kickbacks.
Full link to the article here: http://goo.gl/z1U2kZ
Next up for the CFPB and Realtors:
-Affiliated Business Agreement
-Builder who own title companies and mortgage companies
-Real Estate companies who own mortgage companies and title companies
-The famous 6% rule??????
As the CFPB comes down on Realtors, I will feel your pain, trust me!
Cost VS Value
Great article regarding remodeling and Cost vs. Value, specifically in the Boise market.
This article tells you what your return on value is say if you remodeled a bathroom, or added on a bedroom.
I have it uploaded on my web site and Facebook, link here: http://goo.gl/A5npg4
Lead Generator
Do you have a tag line?
Finish these sentences:
1“Nobody know like __________”
2“You are in good hands with _______”
3“______________ don’t leave home without it”
4“Got_______”
How about “providing superior customer service and the lowest rates”
Rule of thumb, get a tag line and use it.
1-Zamzos
2-Allstate
3-American Express
4-Milk