Phil Grossfield's Blog


I Had No Choice – Thank Goodness!

officeI Had No Choice – Thank Goodness!  My cat destroyed our front room…she pissed all over it, for how long nobody knows. I do know the room became unbearable and I wasn’t about to get new carpet…I’m not big into repeating avoidable issues. So, we went with high-quality laminate and I have to say the room is completely transformed. It changed the whole downstairs. What a difference a relatively inexpensive home improvement can make. Does anyone work with a home improvement company? Gee, I wonder if their clients need cash out refinances?  Hmmmm….

distinguish_yourselfDistinguish Yourself. In order to succeed in this business and in this market, you must find a way to distinguish yourself from other LOs. That is, if you are going to get more reliable referral sources, you must be able to clearly convey several compelling reasons why they should use you….My calendar is getting full – I am scheduling presentations to discuss (1) How to Be Successful In The Future Market, (2) Where to Look For Additional Referral Sources, and (3) How To Distinguish Yourself From Other LOs.  Let me know if you’re interested in a presentation….

My Schedule:  I have an appointment at noon today so will be unavailable for a couple of hours. Otherwise available……..

My Market Watch:   Bonds Up – Fixed Pricing Improved. The 30-year Fannie Mae bond is trading up about +20bps today. The data being reported is boring, at least it is to me. If anything more thought-provoking develops I’ll let you know…

Perspective.  30-Year Fixed Average Rates:  Past 40 years:  8.15%    Past 30 years:  7.45%    Past 20 years:  6.52%    Past 10 years:  5.72%

A Word On Pricing.  We have corporate calls on our pricing strategy. Interbank has traditionally been hyper-aggressive in price but with so much volatility in the bond market we have backed off temporarily while remaining competitive. It is our every intention to jump back into our role as an aggressively priced lender…but when the time is right…. This is good smart business.   

A word on locks.  Even though turn-times are fast, I advise longer term locks or at least a pricing cushion to account for possible lock extensions. Flexibility in getting additional days is not as elastic. I advise 45 day Locks. If you must lock 30 days then be sure to build in additional rebate in case you need to pay for an extension.  This is good smart business.

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