Be The Resource

Is anybody out there enjoying this rollercoaster ride? Since the middle of last week we have seen rates rise sharply as a whole, with huge fluctuations from open to close. We lost a bunch of ground, around ½% in rate or so, just in three days. The scary part of this is, there were five FAKE stories that did most of the damage!

  1. The false rumor about a trade deal between China and the US. It only took 30 minutes for the White House to dismiss the rumor as completely false, but the damage was done and the market began to see rate go higher.
  2. A politician said it was time to privatize FNMA & FHLMC. This spread quickly, but it isn’t even on the agenda for discussion yet! No matter, just more fuel to the fire!
  3. If FNMA & FHLMC go private, they will require more than a TRILLION DOLLARS in new cash reserves. Where is that coming from? Higher fees and rates maybe?
  4. Another part of this was the thought to reduce risk by reducing the DTI ratios down to 45%. Again, not a fact, just a story, but enough to keep the pressure on rates!
  5. Last but not least, was a THOUGHT that the government should refinance its debt by issuing 50 bonds! While it would take a huge amount of work and no guarantee that the credit markets would even have a desire for this paper; people went into a full panic and rates continued to rise!

So my question to you is, did you get out in front of the rise in rates? Did you have a reason or reasons to share with your clients and referral partners about what just took place? If you did, were you proactively walking them through the issue? If not; why not?

If you aren’t the expert; if you aren’t the trusted resource; if you aren’t out there keeping things calm and explaining what is going on, you might as well be an online lender who just cares about the transaction, not the people or the relationship!

The good news is we recovered nicely Monday and Tuesday. Yesterday we were really doing well before the FED announcement and press conference, and then it was a wild ride! We still closed better for the day, but far from the best levels of the day. So keep informed. Watch rates carefully today and Friday and keep calm and informed. Mostly, don’t panic your people! My belief is that rates will continue lower and could reach all-time lows. It just won’t be soon! It will also not be in a straight line! As you have seen, volatility is something we are going to have to deal with for a while!

Questions or comments: Mike@IMTcoaching.com

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Mike White

Improve My Tomorrow Coaching is a company founded by Michael F. White to help mortgage professionals reach their true potential. Based on a belief that working the fundamental principles of the loan origination business combined with a solid system to leverage your day to day business into a self sustaining career! If you are looking to generate consistency in your business, you need to know and implement the fundamentals. Once you know what to do and when to do it, being a mortgage professional is fun, challenging, and profitable. Since the average loan originator in the country closes less than three loans a month, the average originator is unaware that closing seven, ten, twelve or more loans per month is often easier and less stressful than just two or three! If you are tired of the pain and punishment of not knowing where your next deal is coming from; if you spend more time being “busy” instead of “productive”; you need to look and see how we can help you get to a whole new level of business. Take some time to explore this website and read all the free information. If you find some things that cause you to rethink how you are currently doing your business, let us help you! It starts with YOU! There are two programs you can choose, a group program and private coaching. Please look at both before you make your choice.

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