Phil Grossfield's Blog

Poker Solstice   I won twice…two for two. Because my daughter was sick and was quarantined to our stateroom for 24 hours, and because my wife and son went ashore in Juneau to traverse up a mountain, I stayed on-board the Celebrity Solstice and played poker. During my cruise I played only twice, but won both times. Not bad, eh? And, the prize money covered all of our expenses on the cruise for the entire voyage.

I tell you what, a professional poker career seems like a viable option. The only problem I foresee are the 99% of other poker players that are better than me. But you got to start somewhere, right? Wrong.

Instead I’ll focus on how to make money in the mortgage industry, which is what you need to start thinking about as well. Have you seen the new rules coming out on January 10? Here is Fannie’s announcement about ATR – Ability To Repay, QM – Qualified Mortgages, and the new compensation rules:  Fannie Guide Announcement.  And here is a video by the Consumer Financial Protection Bureau – CFPB explaining Qualified Mortgages and Ability To Repay guidelines.

My Schedule:  I have a meeting this morning at 10a and won’t be available until after noon.

My Market Watch:   The Fed Speaks Today at 11a.  Bonds Flat So Far – Pricing Slightly Improved For Fixed and Same for ARMs.  The The Fannie Mae bond is down -9bps on the day which basically nothing…flat. All eyes and ears are focused on the Fed announcement at 11a this morning.  Yesterday I explained QE and discussed the implications of this morning’s Fed Meeting in my post. Click here to see my explanation of QE and my analysis on today’s Fed Meeting.

My Disclaimer

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 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.

Distinguish 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….