Phil Grossfield's Blog

My Schedule…and a Little Extra:   Steaks, manhattans, red wine, good cheese, good friends, and a TV Movie in the room upstairs for all the kiddos…Sunday night bliss.

Mystery TV Show Opening:   Schlemiel!  Schlimazel!  Hasenpfeffer Incorporated……we’re gonna do it! — Answer.

My Market Watch:  Bonds started out this morning slightly better than Friday on negative economic news from Spain.  If you recall, news indicating the economy is weak across seas results in concerns over here in America as well…world markets affect local markets.  When traders feel the current economic environment is weak or unstable, they will typically sell off stocks and invest in bonds instead and when they do that, rates get better.  However, I would caution you against floating aimlessly today…I am already seeing bonds diminishing a bit.  Let me know if you have any questions, okay?  Oh, and the Jobs report is this week but more on that tomorrow….   Disclaimer

My Schedule: Behind the computer all day…it’s month-end….

For a Long List of Conditions, a Huge Hassle, and Massive Frustration – Ignore Me

Locks  |  Running DU/DO  |  Register, Submit & Appraisals  |  Upload Conditions  |  CICs  |  Order Docs

My Schedule…and a Little Extra:   I tried giving advice to my seven year old daughter.  A couple of girls in her class were being mean to her.  I told her to ignore them.  I told her to not let them know it hurt her feelings.  I told her to go have fun and play with others because that’s the best way to show those mean girls that they can’t hurt her.  Do I know what I’m doing?  Am I going to make it worse?  Man, this parenting stuff can be hard sometimes.   |   Joshua Ledet of American Idol is already a superstar as far as I’m concerned.  That doesn’t mean I like every song he sings…but that kid (19!) has an amazing voice and stage presence you’d expect of a music veteran.  Watch this performance.

Mystery Lyric:   If you give me half a chance, I’ll prove this to you — I will be patient, kind, faithful and true, To a woman who loves music…A woman who loves art, Respect’s the spirit world, And thinks with her heart  — Answer.   

My Market Watch:  Although rates are fantastic, we’re at a resistance level that gives me reason to believe we’re presently capped.  What I am saying is I think rates are as good as they’re going to be for a while.  Am I pessimistic…maybe.  But I feel that anybody holding out for better rates right now is nuts…there, I said it.  Let me explain…traders on Wall Street certainly buy and sell based on economic reports, geopolitical news, news from across seas, etc….but they also look for trends or patterns…this helps them make a decision of whether to buy or sell bonds.   Put another way, traders look for “floors” and “ceilings” to identify trends which help them make decisions.  The trend right now is that the 30-Year Fannie bond is at a ceiling of resistance…the bond goes only so high before traders start selling again and try to realize profits, and this is where it is presently.  That is why I am saying there is a more downside right now.  This is hard to explain in writing so I hope I’m making sense…let me know if you want to discuss.   Disclaimer

My Schedule:  Behind the computer all day dealing with month-end….

For a Clean Underwriting Decision Resulting in Happiness and Adulation – Read Me

Locks  |  Running DU/DO  |  Register, Submit & Appraisals  |  Upload Conditions  |  CICs  |  Order Docs

My Schedule…and a Little Extra:   I let my license to practice law expire years ago.  Yesterday I received a number of interesting comments to my post about not many young people entering our business today.  I had a few individuals tell me they had promising careers in other industries, for which they received an education, but chose to go into the mortgage business because that’s where the money was.  Some starting working in mortgages as a second job to supplement their income but they started making more money in mortgages than their primary job.  But now, after the economic downturn which is arguably the worst or second worst in our history, trying to change gears to another industry would be very difficult, particularly now that the economy is struggling.  I can relate to this…I used to be a lawyer and practiced for close to 10 years before entering the mortgage industry.  Since then I’ve let my law license in MN expire since I decided years ago to dedicate myself long-term to this business.  Although I have no intentions of leaving the business, to even consider returning to the law would require I first get re-licensed.  Then I would either have to find a job or start my own firm.  Like so many industries distressed by the economic times, the legal industry is not what it used to be.  I have many friends who are lawyers…making a living is more difficult than ever and many lawyers are working harder for less or have trouble competing over cases.  For one, I am dedicating myself to this business because (1) I really enjoy it (most of the time), and (2) I got nowhere else to go!  🙂

Mystery Movie Line:   Don’t you do it!  Don’t!  You…  I got nowhere else to go!  I got nowhere else to go (sobbing)… I got nothing else  — Answer.

My Market Watch:  Ben Bernanke answered questions yesterday but didn’t say much about QE3…normally this would result in worse rates.  However, the overall sentiment was positive for bonds and rates held steady.  Whew!   Disclaimer

My Schedule: I have one appointment this afternoon and working from a colleagues in the correspondent divisions office today.

Yesterday I got quite a few emails asking exactly what I meant by “Unlimited DTI.”  To be exact, we have no overlays with respect to DTI…if you get a DU Approve/Eligible, then the DTI is absolutely irrelevant.  That means if your DTI is 51%, but you get a DU Approve/Eligible, then we’ll do the loan.  Another example is if your DTI is 500%…as long as you get a DU Approve/Eligible, then we’ll do the loan.  Keep in mind that after you release the DU Findings to InterBank, then our underwriter is going to be making changes as she underwrites the loan.

For a Clean Underwriting Decision Resulting in Happiness and Adulation – Read Me

Locks  |  Running DU/DO  |  Register, Submit & Appraisals  |  Upload Conditions  |  CICs  |  Order Docs

My Schedule…and A Little Extra:   The show is called Trilogy Time:  Han shot first.  Last night at the end of a very long day I watched “How I Met Your Mother” from a couple weeks ago (I never watch live TV unless it’s a sporting event).  Ted, the main character and narrator, and his friends make a pledge while watching the Star Wars Trilogy (before it became a Sextology or Hexology…not sure what to call it now).  They vow to watch the Trilogy every three years from beginning to end.  Each time they gather to watch the Trilogy they think about what they accomplished over the last three years and what things will be like three years from now.  Where were you 6 years ago…three years ago?  And where will you be three years from now…?  Deep, eh?   |   According to Rob Chrisman there is a lack of young people entering our business.  I have to agree…I see mainly veterans…survivors…but very few young people doing what we do.  I guess to a college graduate, the future in our business is questionable.  Your thoughts?

My Trivia:   What is the best movie ever? No, this is not opinion…it’s a fact.  — Answer.

My Market Watch:  Today the Fed speaks…this always has the potential to turn the markets upside-down, sideways and put it into unmentionable contortions.  Moreover, Ben Bernanke, the Fed Chairman, will take questions…depending on what he says or doesn’t say, traders will be listening and looking for body language to make predictions about the future…if he twitches or blinks while speaking, expect a trader to infer something serious.  I expect rates to move quickly one way or the other today, but which way?  If I knew, I’d be figuring out a way to take a flight into space…damn the costs.  One thing is for sure, if traders feel there is optimism about the economy, you can expect rates to worsen significantly.  And if they feel pessimistic about the economy, then expect rates to get better…but not by much…there just isn’t much room for dramatic improvement.  Therefore, my opinion is there is more downside than upside…but I defer to your expertise to decide what to do….  Disclaimer

My Schedule: I have two appointments today…one at 10:30 and another in the early afternoon.  I’m available by phone and email but expect delays in responses….

Yesterday I got quite a few emails asking exactly what I meant by “Unlimited DTI.”  To be exact, we have no overlays with respect to DTI…if you get a DU Approve/Eligible, then the DTI is absolutely irrelevant.  That means if your DTI is 51%, but you get a DU Approve/Eligible, then we’ll do the loan.  Another example is if your DTI is 500%…as long as you get a DU Approve/Eligible, then we’ll do the loan.  Keep in mind that after you release the DU Findings to InterBank, then our underwriter is going to be making changes as she underwrites the loan.

For a Clean Underwriting Decision Resulting in Happiness and Adulation – Read Me

Locks  |  Running DU/DO  |  Register, Submit & Appraisals  |  Upload Conditions  |  CICs  |  Order Docs

“All-In” means there is no flood fee, tax fee, etc.  Appraisal Waivers accepted with $75 waiver fee.  Appraisal Fees may be reimbursed at closing.  Processing Fees may be charged to the borrower on borrower-paid but not for lender-paid.  YSP overage also permitted for Prepaid Interest, Property Taxes, Hazard, and max $500 towards principal reduction.

My Schedule…and A Little Extra:   Thanks for asking, yes, I did have a nice time.  My sister’s wedding reception was lovely and I spent time with my whole family.  I stayed at my brother’s place and had an opportunity to spend quality time with him.  But more importantly, I had an opportunity to spend precious-rare-quality time with my niece and nephew.  On Saturday, we all had lunch and then my nephew Adam and I sat on the couch and talked for hours about nothing and everything.  BTW, Adam is 24 years old, graduated from business school with honors, has a job waiting for him at Price Waters after the summer, and he’s extremely handsome (like model handsome), and, he is in perfect physical condition…it was like talking to a mirror all afternoon.  What?

My Trivia:   What is the worst Sci-Fi movie made in 2011 that you should never, ever, spend your money on, even if you’re on an airplane and trying to burn 2½ hours?  — Answer.   

My Market Watch:  There are no economic reports coming out today so once again traders are watching news from Europe…this is causing negative activity for the stock market.  When traders have nothing to go on but geopolitical news, and that news is interpreted to mean there is a weak economy, you can expect stocks to suffer and bonds to improve…when bonds improve, rates generally get better or stay strong.  As a result, rates are starting out strong right where they left off on Friday.  Since rates came out this morning I’m seeing bonds falling a little but nothing to be concerned with at this point.  This week in reports is Consumer Confidence, New Home Sales, Durable Goods and on Thursday is the Jobless Claims and Pending Home Sales reports.

My Schedule:  Working from home all day, behind the computer.

For a Clean Underwriting Decision Resulting in Happiness and Adulation – Read Me

Locks  |  Running DU/DO  |  Register, Submit & Appraisals  |  Upload Conditions  |  CICs  |  Order Docs

My Schedule…and A Little Extra:   Why did I move?   I’m in Minneapolis at my brother’s house overlooking beautiful Lake Calhoun and the downtown Minneapolis skyline.  It’s gorgeous here…weather is perfect…air is fresh…birds chirping in the background…people smiling.  So why did I move?  Oh yeah, the winters are brutal…they suck real bad.  Oh yeah, the mosquitoes are ruthless…they suck real bad.  Oh yeah, the humidity in the summer is wicked, it sucks real bad.  Oh yeah, the Vikings have never won a Superbowl…they suck real bad.  Well, I guess that explains it.  Nonetheless, family is here and I miss family…all the sucky stuff would be worth it to be closer to them, for real.   |   Yes, it really happened.  Yesterday, I received a fair amount of comments on my true story about how my kids went bonkers in an Italian restaurant last year…if you recall, I wrote ‘they were loud, rude, restless, and my son ended up peeing on the floor.’  Yes, he really did.  As we left the scene we vowed never to return while covering our faces like accused criminals being escorted into a courthouse. But it’s all forgotten now with a sweet do-over the other night.

Mystery Lyric:   I may not always love you, But long as there are stars above you, You never need to doubt it, I’ll make you so sure about it — God only knows what I’d be without you — If you should ever leave me, Though life would still go on believe me, The world could show nothing to me, So what good would living do me — God only knows what I’d be without you — Answer.   

My Market Watch:  With some good news from across seas in Germany and with some positive economic reports in the U.S., traders are investing in the stock market. Remember, when investors feel the economy is stronger, they typically invest in stocks and sell off bonds…when that happens rates worsen.  I don’t expect volatility today but that’s like saying I don’t expect my wife to get upset that I ate the leftover pancakes…I did, and she did…but they were good. J

My Schedule:  Working from my brothers house all day, save an hour to grab dinner with my Dad and sister.  I’ll be done at 5:30p CST or 3:30p PST.  After that, I’ll respond from iPhone/iPad.  Thanks!

For a Long List of Conditions, a Huge Hassle, and Massive Frustration – Ignore Me

For a Clean Underwriting Decision Resulting in Happiness and Adulation – Read Me

My Schedule…and A Little Extra:   It wasn’t legal in Minnesota, so my big sister and her fiancé drove to Minnesota and got hitched.  So, this weekend is the ceremony and I’m flying to Minnesota for the celebration.  I’m extremely proud of my sister…she’s a brave and soulful person.  I wish I could have been there for the ceremony, but I’m grateful to be going to Minnesota for the reception.  I leave today at 5p…I’ll be dropped off at the airport early so I’ll be working in the terminal.   |   They were loud, rude, restless, and my son ended up peeing on the floor.  About a year ago my wife and I went to an Italian restaurant near our house.  To sum up the evening, my kids (3 and 6 at the time) were bonkers…last night we went back, hoping nobody recognized us.  My kids were quiet, polite, reserved, and my son urinated in the bathroom.  How do you like me now?!

Mystery Lyric:   When I think of those East End lights, muggy nights, curtains drawn in the little room downstairs — Prima Donna Lord you really should have been there, sitting like a princess perched in her electric chair — And it’s one more beer and I don’t hear you anymore — We’ve all gone crazy lately, my friends out there rolling round the basement floor — Answer.   

My Market Watch:  Bonds are holding up despite some positive economic reports including the 10-year note auction in Spain.  If you recall, a bond auction always confuses me because logically I think a good bond auction would be good for rates.  So, I contacted Rob Chrisman who is incredibly smart about all this stuff…he was kind enough to give me a call and explained that because the auction was overseas, it bodes well for their economy and in turn this bodes well for ours.  Specifically, if investors are purchasing Spain’s debt, then it means they’re getting a better price than American debt, which means their debt is worse off than ours.  This trumps the fact that bonds simply sold well…I think I got that right.  In addition, Jobless Claims were reported higher than expected meaning more people are without jobs which is a weak economic report…whenever the economy is interpreted as weaker, traders invest in bonds rather than stocks and rates improve.  Let me know if you have any comments or questions, okay?

My Schedule:  Today is a busy day…after catching up on emails I will run and get a haircut, back to the computer to catch up, then off to the airport where I will work all afternoon.  Tomorrow I will work at my brother’s house all day.

Turn-Times Improved!

• Purchases:      3 days from submission (after registration)…prioritized throughout the process.
• Refinances:     4 days from submission (after registration)…45-day locks still recommended.

TODAY’S RATES:  Pricing Engine (password required)     Rate Sheet for Today     InterBank Product Matrix 

Locks  |  Running DU/DO  |  Register, Submit & Appraisals  |  Upload Conditions  |  CICs  |  Order Docs

There is no flood fee, tax fee, etc.  Appraisal Waivers accepted with $75 waiver fee.  Appraisal Fees may be reimbursed at closing.  Processing Fees may be charged to the borrower on borrower-paid transactions.  For lender-paid transactions, outsourced Contract Processing (NMLS Licensed) is considered a 3rd-Party Fee and therefore may be covered by YSP overage/excess rebate.  YSP overage (excess rebate) may be used towards 3rd-Party Fees, Contract Processing (NMLS licensed), Prepaid Interest, Property Taxes, Hazard, and max $500 towards principal reduction.

My Schedule…and A Little Extra:   She is one of the best singers American Idol has ever had on the show, and she is from San Diego.  Oh, if you hate American Idol than you should skip this section.  Jessica Sanchez is a San Diego petite…I think she’s like 10-years old…but her voice is sick, powerful sick.  She received the least number of votes from the public on American Idol and was nearly kicked off the show – the judges used a save option to keep her on.  This lends more evidence to the supposition that this show has become more of a popularity contest than a talent contest.  So, the question is whether that is wrong or unjust.  I mean, we like artists because they can sing well, or we like their lyrics, or the way they dress, or don’t dress, i.e., sex appeal, or for a variety of other reasons.  Hell, Bob Dylan was one of my favorites back in college but to describe him as a good singer is a stretch.  I like a lot of different kinds of music and artists from R&B to rock and even a short list of classical, jazz and even shorter list of country.  But I can appreciate talent even if I don’t like the music.  Jessica has got the chops.

Mystery Lyric:  Once upon a time you dressed so fine, threw the bums a dime in your prim…didn’t you?  People call, say beware doll you’re bound to fall…you thought they were all…kidding you.  You used to laugh about…everybody that was hanging out.  Now you don’t talk so loud, now you don’t seem so proud, about having to be scrounging…for your next meal…how does it feel? — Answer.   

My Market Watch:  Now it’s Spain again…there is a bond auction and everyone is focused on it.  This is one of those tricky events I have a hard time wrapping my head around.  I mean, if the bond auction does well, then that’s good for bonds and you’d think good for rates, right?  But a good bond auction is also good for the economic markets and when considered strong it bodes poorly for rates.  So, I’m really not sure what is going to happen.  From what I’m reading, it seems there is more risk to poor rates on the heels of a good bond auction in Spain.  I’d love some input on this one if you have any thoughts….

My Schedule:  Behind the computer most of day….

Purchases – prioritized throughout the process…underwriting is three (3) days from submission.
Refinances – currently underwriting loans submitted 4/12 (3 days). 45-day locks recommended.

Procedures: 

Locks  |  Running DU/DO  |  Register, Submit & Appraisals  |  Upload Conditions  |  CICs  |  Order Docs

My Schedule…and A Little Extra:   I’m not superstitious (unless the powers in the universe are listening in which case I apologize for my statement).  When I was a kid I watched Friday the Thirteenth on Halloween.  I don’t consider myself a wimp when it comes to scary movies, but this movie rocked me…I was scared.  There are a few other movies that got to me…such as Poltergeist and Aliens.  But just because today is Friday the Thirteenth doesn’t mean I need to be jumpy (WHAT WAS THAT).  The Ten Commandments with Charlton Heston…now that was a frightening move with the power of God and everything…it totally freaked me out (but in a good way God so please don’t be upset with me).

Mystery Lyric:  It’s close to midnight and something evil’s lurking in the dark — Under the moonlight, you see a sight that almost stops your heart — You try to scream but terror takes the sound before you make it — You start to freeze as horror looks you right between the eyes — You’re paralyze — Answer.   

My Market Watch:  Now it’s China…they reported their lowest growth in three years and traders are selling off stocks and investing in bonds…when that happens, rates improve. There are a couple other reports giving a boost (CPI-inflation) but that information is a bit boring so let’s just go into the weekend on a high with no information overload, eh?

My Schedule:  Behind the computer all day working from home…doors locked – windows shut – weapons ready.

Purchases are prioritized throughout the process…UW is three (3) days from submission and sometimes faster.  For refis we recently hired over 30 underwriters and other key personnel to handle the load. As a result, we are underwriting refis submitted on April 10^th – That’s three days ago folks!

QUICK-LOCK INSTRUCTIONS

• Files must be submitted within 10 calendar days of locking or lock will be cancelled
• I recommend 30-day locks for purchases and 45-day locks for refinances assuming you submit the loan the day you lock
• I recommend you cushion your lock with extra rebate in case an extension is required (0.125/week)

 REGISTER, THEN LOCK

Step 1.        Login at InterBank Portal.  If you do not have a login and password, check with your administrator in your office to set you up.

Step 2.        If this is a forward lock (pre-lock), then go to Step 3 below.
If the loan is already in the pipeline, then go to Step 4 below.

Step 3.        There are 2 ways to register:

1. Choose Loan Registration and manually enter the information in.  This is fast and easy.

• or

1. Upload your loan:

Step 4.        Lock your loan.  Go to Pipeline–>Manage Pipeline.  Find your loan and click on the lock  icon under the Tools column…follow the instructions….  Call me on my cell if you need assistance 619-549-9797.

Step 5.         Make sure you choose a rate and rebate that is sufficient to cover your commission.  If it’s a refi, lock 45 days.

Procedures: 

Lock  |  Running DU/DO  |  Register, Submit & Order Appraisal  |  Upload Conditions  |  CICs  |  Order Docs

Our Lender Fee is only $699 “All-In”

There is no flood fee, tax fee, etc.  Appraisal Waivers accepted with $75 waiver fee.  Appraisal Fees may be reimbursed at closing.  Processing Fees may be charged to the borrower on borrower-paid transactions.  For lender-paid transactions, outsourced Contract Processing (NMLS Licensed) is considered a 3rd-Party Fee and therefore may be covered by YSP overage/excess rebate.  YSP overage (excess rebate) may be used towards 3rd-Party Fees, Contract Processing (NMLS licensed), Prepaid Interest, Property Taxes, Hazard, and max $500 towards principal reduction.

My Schedule…and A Little Extra:   My job has changed.  As a rep in the early 2000s, I’d visit clients all the time, even while managing the largest pipeline in a national top-ten wholesale company (in case you’re wondering, this is the bragging portion of the post).  But AEs today spend most of their time on the computer running interference on submitted files and less time selling in the field.  Yesterday I met with one of my newer clients and, well, it made me remember one of the things I love about my job…visiting you.  I mean, not only do I get to build relationships but I also get to show off my incredible good looks (in case you’re wondering, this is the funny portion of the post).  The group I met with yesterday was smart, excited, positive, provocative, and fun.  And I was in my element…meeting with people and building relationships.  I need to do more of that.  So, I will be reaching out to you soon to set up a meeting (in case you’re wondering, this is the serious portion of this post).

Mystery Lyric:  When you’re down and troubled, and you need a helping hand, and nothing, oh nothing is going right — Just close your eyes and think of me, and soon I will be there, to brighten up even your darkest nights — Answer.   

My Market Watch:  Rates are almost exactly the same as yesterday with some spots showing 0.125 better.  Truthfully, I haven’t spent much time researching this morning.  I know the 30-year bond auction went just okay and stocks were performing better.  But aside from that, there isn’t much I can share this morning….  If you have a rate-sensitive situation, call me (619) 549-9797.

My Schedule:  Behind the computer all day working out of a Starbucks….

For purchases our turn-time has never changed…it’s three (3) days from submission and sometimes faster.  But refis were pushed back because of our volume.  As a result we’ve hired over 30 underwriters and other key personnel to handle the load. As a result, we are underwriting refis submitted on April 9^th – That’s three days ago folks!