Phil Grossfield's Blog

A LITTLE EXTRA…

Monthly Archives: September 2015

Vikings Crush Chargers – Big Daddy Crushes Grossfield

Vikings Crush Chargers – Big Daddy Crushes Grossfield.  I scored the third highest points this weekend in my Fantasy Football League. Guess who I played against, go ahead, guess. Yup, Big Daddy (his high school nickname because he had a huge hairy chest at 16-years old and basically was the center of our group) had the most points and of course, that’s who I played against. Woe is me.

vikingsMy consolation prize? The Minnesota Vikings crushed the San Diego Chargers. Now you’d think that living in San Diego for 15 years would turn me into a Chargers fan, and you’d be right. Unless they’re playing the Vikings. In that case I hope for the Vikings to humiliate them on the field and turn those 300+ football players into crying babies. Mission accomplished. That’s all I have to say about that.

My Market Update 9/30/2015

The Fannie Mae 30-year bond is +6bps since yesterday’s close. Generally a lender’s rates/pricing improves when the bond is being bought.

jobsreport2The big news will be next week’s Jobs Report. After a fantastic week for bonds with rates dipping to lows not seen in 5 months, next week’s report will likely have a significant impact on pricing. A strong Jobs Report, which will tell traders the economy is stronger than expected, would spur investments into stocks. The result would likely be a sell-off of bonds and forcing rates/pricing worse. However, a weak Jobs Report, which will tell traders the economy is weaker than expected, would spur investments into safer bonds instead of stocks. The result would be improved rates/pricing. I’m really throwing some positive energy towards the latter scenario…if it happens bonds could really push much higher greatly improving pricing. More on this next week…

Price, Technology and Unique Products

Why I Chose Ethos Lending

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Blood Moon Up – Inflation Down – Bonds Up

blood moonBlood Moon Up – Inflation Down – Bonds Up.  For the first time in 33-years, a blood moon appeared the other night.  What I imagined was how our ancestors thought about it.  Even today it gives a sectarian feeling, theological, supernatural, or at a minimum, a general spiritual feeling. At the fear of sounding completely sappy, I found it inspiring.A “Blood Moon” happens when the Earth eclipses a full Moon, that is the direct sunlight is blocked.  But the sun’s rays still light up the moon. Because this light has traveled through the Earth’s atmosphere, it causes reddish or brownish image.  Depending on what time at night you witnessed it, the alluring image changed…each incredible…each inspiring.  Here are some photos from the other night:  2015 Blood Moon.

My Market Update:  9/28/2015

Generally a lender’s rates/pricing improves when the bond is being bought.  The reason we saw an uptick in bond activity is inflationary concerns, which are less after the Fed essentially said there is no inflation and reports this week confirming the same.  yellenYou see, bonds hate inflation so when there is none, bonds appear attractive.  Traders got that message and started investing in bonds and when that happens our rates/pricing improve – that is the direct correlation between bonds and our rates.

Interestingly enough, a rate hike would help to curb rising inflation, which is one of the reasons Janet Yellen and the Fed were expected to raise rates in September.  So now that reports indicate low if not any inflation, and the Yellen concurs with that assessment, so will we see a rate hike in 2015?   Janet Yellen: Remain on Track – Raise Rates This Year.

Price, Technology and Unique Products

Why I Chose Ethos Lending

Yogi Berra Yogisms

yogiYogi Berra Yogisms.  My father-in-law is a baseball freak…you know, the kind of freak that knows who played third base for the Yankees in 1967.  Me, I can’t even remember Fannie Mae waiting period for a high-balance foreclosure (that’s why I write stuff down).  Yogi was one of his favorites, and for good reason.  Yogi had unconventional wisdom – something I admire greatly.  Here are some of my favorite quotes:
  • Perhaps his most famous:  It ain’t over ’til it’s over.
  • The future ain’t what it used to be.
  • I wish I had an answer to that, because I’m tired of answering that question.
  • Baseball is 90 percent mental. The other half is physical.
  • You can observe a lot by watching.
  • If the world were perfect, it wouldn’t be.
  • About a St. Louis restaurant: No one goes there anymore. It’s too crowded.
  • If people don’t want to come to the ballpark, how are you going to stop them?
  • We made too many wrong mistakes.
  • You tell the stupidest questions.
  • Never answer an anonymous letter.
  • In baseball, you don’t know nothing.
  • On his hitting approach: I can’t think and hit at the same time.
  • So I’m ugly. I never saw anyone hit with his face.
  • When you come to a fork in the road, take it.
  • Always go to other people’s funerals. Otherwise, they won’t come to yours.
  • And finally, on economics: A nickel ain’t worth a dime anymore.

Thanks for your wisdom Yogi!

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Broker Packages Are Fun, Right?!

Price, Technology and Unique Products

Why I Chose Ethos Lending

My Chest Exploded!

Leo3My Chest Exploded!   He went 3 for 4, had 2 RBIs, scored 3 runs, made some good stops in the field and was awarded the game ball by his coach.  I could work out every day doing bench presses and push-ups and my chest would never get larger than it was at my son’s baseball game Friday night.

To put this into context, my son is 7 years old and the week prior was his first baseball game he ever played…he could barely swing the bat or keep the glove on his hand.  I was so damned nervous and felt so bad for him I wanted to implode (I know that’s a dirty word in the finance industry but it accurately describes the situation).  So, I took him to the park a couple of times and we practiced hitting, throwing and catching. My father-in-law also worked with him and then at practice his coach worked with him too.  Then, before his game Friday night I took him to the park early so we could practice.  I pitched to him from the mound and I think that’s when it clicked for him…he got a sense of how it was going to be when he got to the plate…and then WHAM!  He went nuts!  MY CHEST EXPLODED!

Scorpions & TRID Can Mess You Up!

Broker Packages Are Fun, Right?!

Price, Technology and Unique Products

Why I Chose Ethos Lending

Scorpions! TRID!

scorpionScorpions!   I became aware there was a scorpion in my son’s room when my wife SCREAMED at the top of her lungs.  The blood-curdling scream was so intense I almost bypassed using the door to break through the wall.  It was crawling on her leg…thank goodness she didn’t swat at it or she would have been stung for sure.  Yep, I live near the mountains in scorpion land and yep, we’ve had our fair share of scorpions in and around our house.  They’re nasty little creatures that hurt worse than a bee sting and can actually mess you up if the right one gets you.

tridTRID can also mess you up if you don’t know what to do.  And from what I understand many lenders are taking many different approaches to handling the change…surprising eh?  But in my opinion, Ethos’ process for TRID is the easiest and best method for you, the Broker.

Sign up for our training which are held every Tuesday and Thursdays at 11:00a PST.  Email me and I’ll send you the Webinar information and a 1-page summary document, or, call me at (619) 549-9797 so we can discuss.

Broker Packages Are Fun, Right?!

Price, Technology and Unique Products

Why I Chose Ethos Lending

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Broker Packages Are Fun, Right?!

paperworkBroker Packages Are Fun! Right?  You won’t hear this from Ethos, “All we need is a hair follicle along with a blood and urine sample, okay?

Nothing is more pleasurable than getting a call from an AE and hearing, “Hey, want to fill out my broker package?!” After all, completing a broker package is fun, right? According to every single broker I have ever worked for my entire career, the answer to that question is a resounding”NOOOOOOOO!”

Maybe that’s because it takes forever or maybe it’s because the paperwork is such a pain in the you know what. And then, after you finally complete it and send what you think is everything to the lender, they almost always come back to you needing more.  In fact, it’s such a pain that one company emerged (get it?) whose sole purpose is to streamline the process.  But from what I hear that’s not a well-accepted nor entirely desirable process either.

I actually pitched to a couple of lenders that we should streamline the process ourselves. I told them that as long as the broker has recently been approved or re-certified at a few other large and well established institutions, whom we know perform all kinds of checks and balances during their approval process, that we should be able to simply get a Broker Agreement, run a background check and forego all the other minutia. But that argument has never been accepted or even given more than a fleeting thought, presumably because the warehouse lenders and other investors would never agree to it.

So what if I told you that completing Ethos’ broker package was fun? Would you believe me? No, I didn’t think so. But what if I told you it would take just 20 minutes or so online including electronic signatures. No, really?  What would you say?

Price, Technology & Unique Products

Why I Chose Ethos Lending

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Price, Technology and Unique Products

uniquePrice, Technology and Unique Products.  Ethos has a simple strategy…Price, Technology and Unique Products.  Not included in this strategy is every loan program under the stars or just loan programs that offer the highest margins.  Instead, we focus on offering the essential mainstream products at an extremely aggressive price, coupled with uncommon products, like Interest Only.  In order to offer such a competitive price, the technology has to be proprietary and superior in order to drive efficiency.

Our industry is broken in many respects and doing business the traditional way just isn’t going to cut it.  The way in which Ethos is handling TRID, and the strategy for operational flow is right on the money.  I’ve been preaching a model like this for a long time and finally found it.  Obviously we have to execute the plan, and as of now we’re on course.  I’m a believer.  Sign up with me now…email me or call me at (619) 549-9797 so we can discuss…

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Time To Buy A Lamborghini Aventador

Lamborghini AventadorTime To Buy A Lamborghini Aventador.  Yesterday I celebrated my 48th birthday and once again I found myself asking those annoying annual questions…

  • Is this where I thought I’d be by now?
  • Good Lord!  I’m going to be 50 in just 2 years?!
  • What does it all mean anyway when common-folk in the Game of Thrones are killed for no reason whatsoever?
  • I should impulsively buy a Lamborghini Aventador, right now, right?  That makes sense, doesn’t it?

Yes, I decided it’s time to buy the Lamborghini Aventador.  It’s a bargain for just under $4,800,000 if you want the upgrades, and I do of course .  Yes, I’d be divorced and perhaps committed to an insane asylum before the end of the year but that’s okay, right?  A Lamborghini Aventador would be worth it, no?  If only my wife hadn’t made me home-made muffins and a cake yesterday from scratch and bought me football tickets…how am I supposed to justify a Lamborghini Aventador now?  Why does she have to be so damn cool?  Hey, I got an idea!  I’ll start saving for my 50th birthday…it’s just 2 years away and she can’t deny me a Lamborghini Aventador on my 50th birthday, right!  Sweeeeeeeeeeeeeeeeet!

Why I Chose Ethos Lending

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Why I Chose Ethos Lending

Why I Chose Ethos Lending.  ethos logo verticalHaving met with several of the executive management, including the President and CEO, and after discussing with other AEs I worked with in the past at Interbank, I not only feel like this model has legs, I also feel like it’s a good fit for me.  I’m a high volume rep…I like to be busy and close a ton of loans.  Although I know I will have to help out on specific loan files when necessary, I’m not really interested in getting involved with every single transaction.  I want to be with a lender that sees most of its transactions flow without impediments.  Ethos has the right set-up and technology…its all about the execution…and as of late they are executing brilliantly.

Ethos has been around for more than a year and has reached milestones in volume and an improved customer experience.  It has survived the growing pains of a first year start-up and has improved its operational flow dramatically with the help of truly impressive technology and input from respected AEs.  According to some of my brokers and the AEs that have gone through its growth, the flow has improved dramatically even in the last couple of months.  From what I’m told, once you understand the portal, your loans will flow smoothly, and if not, then that’s where I come into play.  On top of that, the price is consistently hyper-aggressive and they have no intentions of changing that strategy.  For all these reasons, I decided to represent Ethos.  Come join me and let’s give your borrower’s a great rate and your referral sources a great reason to come back.  Call or email me for more information on joining.

Ethos focuses on Fannie, Freddie, Jumbo, and has recently introduced Interest Only.  There are no government loans.  The strategy is simplicity, transparency, efficiency, and hyper-aggressive price.  I like this summary on the website, entitled “About Us.”

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