Rates
We got some improvement this week on rates, I would say more of a pause than anything.
This week rates in the end will probably improve by <.125%, lenders are holding tight onto any gains, for fear they will be caught again in a big fall.
Most of the US economic news was pretty good, or if it was bad, it was blamed on the weather. But what really got people thinking, again, was Greece. Looks like they have a interest payment due, soon, and Greece doesn’t know if they can make it, why?? Looks like someone may be fudging the books!!
Couple of articles came out this week that Greece has been shuffling money around to make it look like they have more than they actually have.
As I indicated last week, rates were really going to start going up, unless Greece or Russian came back into the news. I am in the same mode this week as well, there is just too much good economic news coming out to cause rates to drop:
Economic News:
-Wholesale inventories 0.3% vs est. of -0.1%, people stocking up for sales of goods.
-JOLTS jobs reports, starting to become more and more of a number being looked at, this report is amount of jobs available. Last week there were 4.998M jobs available.
-Jobless claims 289,000 vs est. of 306,000
-Retail sales -0.2% vs est. 0.6%, negative number but weather was to blame.
-Producer Inflation: -0.5% vs est. 0.1%, NO inflation at producer lever.
-Consumer Sentiment 91.2 vs est. 95.5, once again blamed on weather.
As you can see, good economic reports, and traders feel that if we didn’t have all those storms back east, all of the reports would have been significantly better.
Most talking heads feel that the Fed will increase their funds rate by .25% in June.
Not worth the risk, lock them as soon as you can!
Rural Development Changes
RD is proposing some pretty significant changes, and I feel that most of them will go into affect:
-RD to follow Frank/Dodd Qualified Mortgage (QM) rules, which means even tough guidelines for RD.
-RD is going to allow principal reduction for foreclosure prevention, this is HUGE, if RD allows for principal reduction, this will be the 1st program to allow for this, pretty significant.
-Lenders will be on hook for the loan for 5 years instead of 2 years. Right now if a RD loan forecloses in the 1st 2 years, the whole file is audited, and if a “I” isn’t dotted or a “T” crossed, the lender has to buy back the loan. RD is extending this to 5 years! And you thought RD underwriting was tough now, just wait until the lender is on the hook for 5 years!!!
-RD is going to loosen up the Streamline refinance, which is also good!
More info and maps on Rural Development loans here: http://www.375loan.com/loan_products/rd_home_loan/
Credit Report Changes
State of New York, sued the big 3 bureaus and one, or atleast settled, and we are going to see some rather good changes to Credit Scores. Although the changes are now HUGE, it is a step in the right direction
1-Medical bills can’t be reported on credit report for 180 days. This will allow insurance companies to work with customers to get things resolved. Right now, locally here, the big Monopolies Hospitals, will give you pretty much 30 days for you to either pay your bill or resolved it with the insurance company, and if not, they send you to collections and report on your credit report.
Now you will have 180 days to get it all sorted out!
2-Disputing credit report will be easier. We have been promised this forever, but slowly but surely it is getting better.
3-Illegal activity can’t be reported to the credit bureaus. So if a Money Tree loan doesn’t follow the rules of the state they are in, and they send you to collection, that collection can’t show up on your report. I.e. if Idaho say that a short term loan can’t be more than 300% interest, and they charge you 400% interest, and you default, it can’t be recorded on your report. FYI, average short term loan is about 300% interest.
There is also some other items, minor, but will still help.
I have some great links on credit here: http://www.375loan.com/credit_info/5_steps_to_repair_credit/
Lead Generator
Well it has been over a month, have you given out 500 business cards? I did! And I got a loan out of it also!!!
Today is about SWAG.
What is SWAG, well it is little trinkets or items that have your logo and contact info on it. SWAG also has other meaning, but let’s just work on the Marketing side.
Pens, note pads, coffee mugs, letter openers, hats, bags, pretty much anything which you can screen print or laser engrave you info onto.
What do you do with SWAG, you give it out! As fast as you can. To Friends, Family, past clients, the girl at Wal-Mart, whoever!
I have seen some GREAT swag lately, and going to use them as examples:
Frank & Connie Stauts (Silvercreek) go traveling and take GREAT pictures, Connie then creates a 12 page calendar and gives them out to past clients, 12 months of seeing their names priceless!
Karie Ann McCleary (Silvercreek) brought me a calendar with her card attached to it and 8 dog bones, now I tried the dog bones, and I really didn’t like the texture, but my dogs at home did!
Tina Burdick (Silvercreek) sends her clients each month recipes cards in the mail. Each month they get a really cool card, with her name on it.
I spoke with a Realtor about this last week, and he complained that he really didn’t have that type of money to make SWAG. So I asked him how much taxes did he give the IRS last year. He indicated >$4000, so I said, how about giving some printer $1000 and then giving the IRS $3000.
Please consult your CPA, but I deduct ALL of my marketing on my taxes!
My famous phrase, I can give it to the IRS or I can give it to my vendors (Internet provide, lawyer, swag dealer).
And if you don’t have one of my pens, then shame on me, but I give pens out with all of my info to everyone I meet!