Phil Grossfield's Blog

A LITTLE EXTRA…

Monthly Archives: June 2012

A House Is A Home; Don’t Bring the Wagon

My Schedule…and a Little Extra:   Two things:  (1) I do not recommend you bring a Red Radio Flyer wagon to the fair unless you’re prepared to run over many a feet and risk the possibility of getting into a physical confrontation with a very large man whose daughter’s foot you’ve just violated.  Also, beware the moralless father who simply throws his kid in your wagon when you’re not looking and walks off, and, when your wife finds him and bravely confronts him he shakes it off with a shrug of his shoulders; and (2) I’m sure you know someone who has lost a house or who is trying desperately to hold on to it.  I like this post from Rob Chrisman, an extremely-knowledgeable well-respected speaker and daily blogger in our industry who wrote this excerpt about how insensitive the press is about the incredible emotional attachment one has to his home:

“Last month we sold the house where my kids grew up, and I had a handyman remove the doorframe where we marked heights on birthdays. I am not mentioning this to turn the daily into a Hallmark card, but because it reminded me of one thing that the press seems to forget: a house is a home and not a share of stock. And when it comes to that, the popular press seems to forget that people need a place to live, that people want a good school district for their kids, a place to get to know the neighbors, a place to create an emotional attachment. I could go on and on, but there are very concrete reasons why people who are underwater on a house still make the payments, why many who supposedly saw the real estate decline didn’t sell their home, and why so many people don’t care about minute fluctuations in the price of housing based on the latest metric.”

My Mystery Lyric:  Watching girls go passing by, It aint the latest thing — I’m just standing in a doorway, I’m just trying to make some sense — Out of these girls go passing by, The tales they tell of men — I’m not waiting on a lady, I’m just waiting on a friend — Answer

My Market Watch:  There are a bunch of indicators I could list off for you and reports and comments made by European leaders regarding debt….  But this is all a bunch of boring “data”…nothing really interesting to me at least.  Bond prices started out lower this morning but Interbank rates came out practically the same from yesterday.  Disclaimer

My Schedule:  Available all day but taking my car in for maintenance so on the road to and from….


UPDATED DAILY:                                  

Read Me for a Clean Underwriting Decision Resulting in Happiness and Adulation or Ignore Me for a Long List of Conditions, a Huge Hassle, and Massive Frustration

MY PROCEDURES are updated daily – check it out…


LTV EXCEPTIONS – VERY EASY AND VERY FAST!

Exceptions to LTV overlays are EASY to get.  In fact, it is VERY LIKELY you will get an exception approval if InterBank has an overlay that is permitted by Fannie Mae, and, I can usually get you an answer within the same day.  The process is VERY EASY and we’ll know in advance if the exception will be granted before you submit. Here are my precise instructions:  Exceptions – When and How to get an Exception

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Up and Down Up and Down

My Schedule…and a Little Extra:  I always liked the horse that goes up and down up and down.  I never understood my whole life why they even made horses that are stationary…they don’t move…why would you want to sit on that when you could sit on a horse that goes up and down up and down?  But now I understand.  My son did NOT want a horse that went up and down up and down…NO WAY.  But unbeknownst to him, they only had the horses that go up and down up and down…so when he was strapped in and the ride started he was VERY displeased that his horse was indeed going up and down up and down.  The first 30 seconds was nerve-racking but with my tight grip around him, my words of encouragement, and seeing the other kids enjoying themselves he managed to fight his fears and ended up enjoying the ride.  But my brief attempt to remove my hands from his side was met with a STERN reprimand and NOT considered even remotely humorous.  But he got through it…check that one off the list…. 🙂

My Market Watch:  Bond prices started out lower this morning but Interbank rates came out practically the same from yesterday.  Stocks look they are beginning to slip a little but barring anything extraordinary, should be a flat day.  Disclaimer

My Schedule: Available all day but taking my car in for maintenance so on the road to and from….


UPDATED DAILY:                                  

Read Mefor a Clean Underwriting Decision Resulting in Happiness and Adulation

MY PROCEDURES are updated daily – check it out…

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


EXCEPTIONS – VERY EASY AND VERY FAST!

Exceptions to LTV overlays are EASY to get.  In fact, it is VERY LIKELY you will get an exception approval if InterBank has an overlay that is permitted by Fannie Mae, and, I can usually get you an answer within the same day.  The process is VERY EASY…all you have to do is register the loan so we have a loan number and send me an email with your DU Findings.  I’ll take over from there…I will forward exception request before you submit the loan (all you’ve done so far is register the loan).  This way we’ll know in advance if the exception will be granted. Click here for details on Interbank overlays compared to Fannie Mae guidelines, and for explicit Instructions on getting an exception:  Exceptions – When and How to get an Exception


Turn-Times:

Purchases:      4 days from Submission (after registration)…prioritized throughout the process.

Refinances:     7-8 days from Submission (after registration)…45-day locks still recommended.

Conditions:     48 hours from last uploaded document.

I Didn’t Eat Enough

My Schedule…and a Little Extra:  A few bites of a below-average corn dog, half a Chicago dog, one chicken strip, half an ice cream cone, one bite of a caramel apple, corn on the cob with Bob’s special spices, butter and parmesan cheese (holy crap this was outstanding!), a couple bites of lousy pizza (which begs the question of why take more than one bite), and a decent BBQ brisket sandwich.  I would have had a bite of my wife’s bacon-wrapped cream-cheese filled jalapeño but she didn’t share.  All in all, a pretty light day of eating for me at the San Diego County Fair.  🙂

My Market Watch:  Despite stock market woes, bond prices aren’t getting much bang.  In fact, rates from Friday are practically the same.  The New Home Sales report was released this morning but even though it’s not bad the Fed made statements that housing was still depressed and that kind of statement tempers things, you know?  Disclaimer

My Schedule:  Available all day until 2:45p and then out for an hour….


UPDATED DAILY:

Read Me for a Clean Underwriting Decision Resulting in Happiness and Adulation

MY PROCEDURES are updated daily – check it out…

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

Champions! Strange Market Activity

My Schedule…and a Little Extra:  He deserves it.  He made a huge decision to leave Cleveland but it was the right decision.  Granted he should’ve handled it better when he left which is why he was so harshly treated and criticized the last two years, but when I was 24 years old I can recall a couple incidents that I didn’t handle so gracefully.  I can tell you this…I’ve been following Lebron James his whole career and I believe his heart to be pure.  One of my best friends back in Minneapolis has been coaching basketball for years and told me about Lebron James before he was even out of high school…“watch for this kid…he’ll be the best player on the planet one day.”  Last year when he went to the Miami Heat and ended up losing in the finals everyone jumped on him…they loved to see him fail.  Lebron was humbled and referred to himself as “immature” stating he needed to work harder and improve.  That says a lot about someone…his willingness to call himself out openly like that.  And this year you could see he did improve in almost every facet of his game, and what’s more, he made everyone on his team better too (except for maybe Dwyane Wade).  Lebron was determined to remain humble and not take anything for granted and he didn’t rest until he had he won the MVP award for the season, was named MVP of the Finals, and won the whole damn thing.  He’s redeemed himself and deserves respect and admiration.  Congratulations Lebron! And congratulations to me for predicting all of this at the beginning of the season.  I really am awesome, aren’t I?  J

My Mystery Lyric:  I’ve paid my dues…Time after time — I’ve done my sentence…But committed no crime — And bad mistakes…I’ve made a few — I’ve had my share of sand kicked in my face…But I’ve come through! — Answer

My Market Watch:  Yesterday the stock market got hit hard and as a result we saw an improvement in rates.  But what I find interesting is that I didn’t see bonds improve all that much.  What I mean is this…typically there is a converse relationship between stocks and bonds.  That is, if stocks perform poorly then bonds usually perform well and vice-versa.  The idea is that traders either put their money into stocks or bonds, and sell one to make buying power for the other.  Of course, this is not always true and yesterday was that exception to the rule.  In fact, I was watching the bonds page when I saw Interbank’s mid-day rate change for the better and I wondered why.  Capital Markets departments watch many different indicators in determining rates and volatility, such as economic reports or geopolitical news, but almost like clockwork we can see a direct correlation to the Fannie bond.  Not so yesterday…when the mid-day rate improvement was published, bonds were relatively flat.  According to my research, yesterday stocks sold off after weak global economic data was released and the reason bonds didn’t react as sharply as usual was attributed to the Federal Reserve’s buying.  Anyway, I thought it was interesting.  Today should be flat unless something unknown is brewing…if it was going to go one way or the other I would expect worse…but it’s way too early to tell….  Disclaimer

My Schedule:  Available all day….


EXCEPTIONS – VERY EASY AND VERY FAST!

Exceptions to LTV overlays are EASY to get.  In fact, it is VERY LIKELY you will get an exception approval if InterBank has an overlay that is permitted by Fannie Mae, and, I can usually get you an answer within the same day.  The process is VERY EASY…all you have to do is register the loan so we have a loan number and send me an email with your DU Findings.  I’ll take over from there…I will forward exception request before you submit the loan (all you’ve done so far is register the loan).  This way we’ll know in advance if the exception will be granted. Click here for details on Interbank overlays compared to Fannie Mae guidelines, and for explicit Instructions on getting an exception:  Exceptions – When and How to get an Exception

Exceptions Are Easy; Hypothetical Question; Operation Twist

My Schedule…and a Little Extra:  A hypothetical question…what if hypothetically a person (not me of course) went to get his son’s prescription at the pharmacy but it was going to take a couple hours to fill because they had to get a refill from the kid’s doctor.  Hypothetically there happens to be a wine bar next door, so, hypothetically this person goes to the wine bar while he waits for the prescription and orders a glass of nice hypothetical Pinot Noir.  While at the wine bar the owner has wine salespersons visiting and they are pouring everyone at the bar samples of their different hypothetical grapes.  Our hypothetical person sparks a conversation with several of the other very happy free-drinking customers and overall has a fantastic time.  Did I mention this was a hypothetical situation?  Good.  So, let’s say this person finally gets the prescription and heads home, late of course because the pharmacy took so long filling the hypothetical prescription (which is hypothetically true).  So here’s the question…since our hypothetical person’s wife was sick and feeling rather lousy and he doesn’t want to make her feel bad by telling her he he was in a bar drinking free wine, should he keep it to himself or brag about it?  My friend would like some advice….   |   Oh, I can’t forget this…GO HEAT!

My Mystery Lyric:  Some say I’ll be better without you, But they don’t know you like I do, Or at least the sides I thought I knew —  I can’t bear this time, It drags on as I lose my mind, Reminded by things I find, Like notes and clothes you’ve left behind — Wake me up, wake me up when all is done, I won’t rise until this battle’s won, My dignity’s become undone — Answer

My Market Watch:  Yesterday I said it would be a scary day and I have to admit, I was right on target.  Interbank had a mid-day rate change for the worse, then shortly thereafter another for the better, and then yet another for the worse again.  Whew!  The Fed will expand its “Operation Twist” program to extend the assets on its balance sheet…they will sell $267 billion of shorter-term securities and buy the same amount of longer-term debt in a bid to reduce borrowing costs and spur the economy.  Sounds complicated but it’s really not…simply put, it’s a fancy way of describing how they will buy and sell bonds to affect interest rates.  Traders seem to view this decision as the Fed maintaining the status quo but really the Fed is saying the U.S. economic recovery is at risk of stalling.  In terms of long-term bond prices, this isn’t necessarily a bad thing.  Disclaimer

My Schedule:  Available all day….


EXCEPTIONS – VERY EASY AND VERY FAST!

Exceptions to LTV overlays are EASY to get.  In fact, it is VERY LIKELY you will get an exception approval if InterBank has an overlay that is permitted by Fannie Mae, and, I can usually get you an answer within the same day.  The process is VERY EASY…all you have to do is register the loan so we have a loan number and send me an email with your DU Findings.  I’ll take over from there…I will forward exception request before you submit the loan (all you’ve done so far is register the loan).  This way we’ll know in advance if the exception will be granted. Click here for details on Interbank overlays compared to Fannie Mae guidelines, and for explicit Instructions on getting an exception:  Exceptions – When and How to get an Exception


UPDATED DAILY:

Read Me for a Clean Underwriting Decision Resulting in Happiness and Adulation

MY PROCEDURES are updated daily – check it out…

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


Turn-Times:

Purchases:      4 days from Submission (after registration)…prioritized throughout the process.

Refinances:     7-8 days from Submission (after registration)…45-day locks still recommended.

Conditions:     48 hours from last uploaded document.

Fed Meeting

My Schedule…and a Little Extra:  Today is a BIG day…and I’m not referring to the convincing victory of the Miami Heat over the Oklahoma Thunder although for anyone routing for the Thunder all I can say is I told you so and that the Miami Heat kick serious booty.  But no, that’s not what I’m talking about.  Read My Market Watch section below….

My Mystery Quote:  When I walk beside her, I am the better man — When I look to leave her, I always stagger back again — Once I built an ivory tower, So I could worship from above — When I climb down to be set free, She took me in again — Answer

My Market Watch:  Today is a BIG day!  There are no economic reports coming out today so what am I talking about?  I’m talking about the Federal Reserve’s Board Meeting which was yesterday and finishes today.  Yes, this is a big deal because most feel what goes on today will shape policy for the rest of the 2012 year.  Unfortunately, nobody knows what they’re really talking about so when the meeting is over the traders and reporters will be trying to assess what happened by the expressions on the member’s faces, or from their body language.  There is a press conference afterwards by Ben Bernanke but make no mistake about it…what he says, what he doesn’t say, even what he is wearing will be scrutinized and interpreted into some financial tell on what is to come.  Everyone is most interested in Quantitative Easing which is monetary policy central banks use to try and stimulate the economy. In general, it means they buy assets from banks so the banks have more (quantitative) reserves to lend.  So, does the Fed intend to initiate more easing?  If not, rates should get worse.  It’s both an exciting and somewhat scary day.  Disclaimer

My Schedule:  Available all day….


UPDATED DAILY:

Read Me for a Clean Underwriting Decision Resulting in Happiness and Adulation

MY PROCEDURES are updated daily – check it out…

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

Perfect Father’s Day; Greece Elections; Fed Meeting Tomorrow

My Schedule…and a Little Extra:  My wife said yes to almost everything.  I had breakfast in bed after the kids jumped on top of me to wake me up (even though I was already awake).  I had pancakes and coffee.  My son made me a trophy and my daughter made me a chapter book…then they gave me a dance performance.  I told my Dad how much I love him. I called my father-in-law and wished him a happy father’s day…but no sappy stuff.  Then the four of us went strawberry picking and mini-golf.  Then we went home, made fresh strawberry daiquiris and fresh strawberry pie.  I had a beverage and watched the game (my team won) while my wife bathed and got the kids ready for bed.  Pretty much a perfect Father’s Day for me.  Here is the card my four year old son made for me in school:

My Daddy’s name is Phil
My Daddy is 65 years old (I’m 44)
My Daddy plays racing cars with me (this is true)
My Daddy looks like a fish (this is true)
My Daddy is special because he likes trophies (he made me a trophy as a gift)
I love my Daddy because I love him every day and every night (this is the dagger 🙂 )

My Mystery Quote:  Be who you are and say what you feel because those who mind don’t matter and those who matter don’t mind —  Answer

My Market Watch:  Rates are unchanged from Friday.  It’s all about the Greece elections yesterday.  The victors will try to back the country’s bailout and the markets are happy as a result.  But it’s far from over. Starting tomorrow there is a Fed meeting and as you know what they say and don’t say can shift the markets tremendously.  With all the disruptions in Europe, many think more stimulus discussions will occur and if so, expect rates to continue to remain low.  All these events would normally create an improvement in prices, but being that prices are already rock-bottom, rates have come out essentially the same as Friday.  Disclaimer

My Schedule:  Available all morning until 1:30p and then my schedule gets sporadic.


UPDATED DAILY:

Read Me for a Clean Underwriting Decision Resulting in Happiness and Adulation

MY PROCEDURES are updated daily – check it out…

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

I Want

My Schedule…and a Little Extra:  I want my wife to say yes to everything.  I want breakfast in bed after the kids jump on top of me to wake me up.  I want pancakes or waffles.  I want a hike. I want gifts made by my children and I want a performance, any performance.  I want a relaxing day without any drama.  I want dessert, more than once.  I want to tell my Dad how much I love him which is a lot, more than you can imagine.  I want to tell my father-in-law I love him except I can’t tell him that because he doesn’t like that kind of stuff and he’d probably hang up on me.  I want new quality sunglasses.  I want new shoes.  I want dinner at a restaurant.  I want a beverage at dinner and not have to drive home.  I want a big squeeze-hug from each of my kids just before they go to bed.  Happy Father’s Day!

My Mystery Quote:  A dad is someone who wants to catch you before you fall but instead picks you up, brushes you off, and lets you try again.  A dad is someone who wants to keep you from making mistakes but instead lets you find your own way, even though his heart breaks in silence when you get hurt. A dad is someone who holds you when you cry, scolds you when you break the rules, shines with pride when you succeed, and has faith in you even when you fail —  Answer

My Market Watch:  It’s all about Greece.  Elections are Sunday.  From what I’m reading there is all kinds of speculation of what the markets will do depending on who wins.  Next week there is a Fed meeting…it will be very interesting to hear what is expected from the meeting and then what they actually say….  Disclaimer

My Schedule:  I am going to my daughter’s Chef camp at noon for a quick lunch.  Otherwise available all day.


UPDATED DAILY:

Read Me for a Clean Underwriting Decision Resulting in Happiness and Adulation

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

MY PROCEDURES are updated daily – check it out…


Turn-Times:

Purchases:      4 days from Submission (after registration)…prioritized throughout the process.

Refinances:     7 days from Submission (after registration)…45-day locks still recommended.

Conditions:     48 hours from last uploaded document.

But Phil, the Borrower is Going On Vacation!

My Schedule…and a Little Extra:  “But Phil, my borrower is going on vacation and we need to expedite everything!”  I’m sympathetic, I really am…but you have to know it doesn’t work on Operations.  Did you know I used to run a branch for MIT Lending/MortgageIT?  Did you know my branch was the highest producing and most profitable branch in the country before Deutsche Bank shut us down?  So, as a former Branch Manager in charge of sales and Operations, I am telling you that the excuse your borrower is going out of town is ineffective…simply unpersuasive.  Why you ask?  Because Operations hears that excuse 500,000,000,000,000 times a day, maybe more.  Nothing rolls the eyes of an Operations person more than hearing the borrowers will be going on vacation.  Now, I know it’s true your borrowers are going out of town, but I’m telling you it does you more harm than good to tell Operations.  And this is not an Interbank thing…this is true of every lender.  In my opinion you’re better off telling Operations another story or using a different tactic to request an expedite, you dig me?  🙂

My Mystery Lyric:  I turn the music up, I got my records on — I shut the world outside until the lights come on — Maybe the streets alight, maybe the trees are gone — But I feel my heart start beating to my favorite song — And all the kids they dance, all the kids all night — Until Monday morning feels another life — I turn the music up, I’m on a roll this time — And heaven is in sight……… —  Answer

My Market Watch:  Today the markets are expected to be calm since Greek elections are on the horizon.  Yesterday, we saw a nice pick-up for bonds with weak economic news, namely, a lackluster retail sales report and more importantly a big down-grade of Spain by Moody’s. The only other thing that might make things move is today’s $13 billion 30-year bond auction.  That said, bonds are performing well this morning already up 16bps since our rates came out.  If this trend continues we could see a mid-day price change for the better…that would nice, eh?  Disclaimer

My Schedule:  I have one short appointment today at 2:30p and then I might bail to take my son to the doctor, depending on the doctor’s availability.


UPDATED DAILY:

Read Me for a Clean Underwriting Decision Resulting in Happiness and Adulation

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

MY PROCEDURES are updated daily – check it out…


Turn-Times:

Purchases:      4 days from Submission (after registration)…prioritized throughout the process.

Refinances:     7 days from Submission (after registration)…45-day locks still recommended.

Conditions:     48 hours from last uploaded document.

45-Day Locks Recommended

My Schedule…and a Little Extra:   45-days locks…I highly recommend them, even for purchases for the time being.  Although we are staffed well for the large pipeline, my concern is if rates move up, even a little.  In that case, the free extensions you have been happily receiving will discontinue…they will no longer be handed out liberally by the lock desk and you may find yourself in a jam.  Interbank’s lock desk has been extremely gracious, in fact, downright charitable in providing for free extensions.  But in a down-market, that generosity is and should be replaced with financial responsibility.  I strongly advise 45 day locks to protect yourselves from the cost of a 0.125 per week lock extension and possible delays when funding is on the horizon.  Many of my brokers are even locking at 60-days to ensure there are no issues later.  Let me know if you have any questions, okay?

My Mystery Lyric:  Oh na-na, what’s my name? Oh na-na, what’s my name? Oh na-na, what’s my name? what’s my name? what’s my name?  — Answer

My Market Watch:  Today the markets are confusing.  I’ve read a few different things and where things are headed in the short run is really guess work.  I checked the 30-year bond which a direct indicator of what is happening to the bond market and it was down 16bps at one point this morning and now it is par.  So, who knows what’s going to happen today?  Capital Markets usually won’t pull the trigger until bonds fall to about -20bps but I’d keep an eye on things…I will be around all day and doing just that.  But do your own research too and let me know if you see anything….  Disclaimer

My Schedule:  Working on some funding issues this morning but I’ll be behind the computer all day until about 4p, and then off….


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

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


Net Tangible Benefit:  0.250%:  in order to refinance, a borrower’s rate must improve by 0.250% to meet the NTB test.  If you have a rate of 3.99% and the refi would result in a rate improvement of 0.240%, that is also acceptable.  Of course, going from an ARM to a fixed rate is an acceptable NTB without the 0.250%…similar types of refinances would be okay.  Let me know if you have any questions, okay?


New Procedures From Me Available Here:  MY PROCEDURES


Turn-Times:
Purchases:      3 days from Submission (after registration)…prioritized throughout the process.
Refinances:     6 days from Submission (after registration)…45-day locks still recommended.
Conditions:     48 hours from last uploaded document.

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