Phil Grossfield's Blog

My Schedule…and a Little Extra:   Win a Parrott Bluetooth for your car…click the following link.  We have this for our Odyssey and it works great…I highly recommend…especially when it’s free!  Parrot MINIKIT+ Review and Giveaway for Hands-Free Cell Phone Use in the Car.

My Market Watch:   Today the Jobs Report came out and it reported only 115,000 new jobs…that is not good for the economy since traders were expecting closer to 162,000 new jobs to be reported.  Because the new jobs report came in much less, traders should interpret the report as a weak economy…much less new jobs than expected = crappy economy.  When traders feel the economy is weak, they typically sell off stocks and put their money into bonds instead.  When traders sell stocks and buy bonds instead, rates generally get better unless something else is going on that levels it out.  HOWEVER, as I have mentioned on several occasions, rates are about as low as they can get…there is not much more.  Even though the news is typically bully for bonds, there just isn’t anywhere to go.  If you compare this morning’s rates to yesterday’s rates, the difference is very minor with only a slight improvement.  With all these important reports that have a propensity to move the markets, there is without questions more downside than upside…just keep that in mind for the future…  Disclaimer

My Schedule:  I have one appointment this morning and available the rest of the day.

My Schedule…and a Little Extra:   Your mind is a parachute.  My father-in-law went to one of those time-share sales meetings so he could get a free toaster or carrying bag or something.  After listening to the sales pitches which lasted for a couple hours, he told the sales person repeatedly that his only interest in coming to the meeting was to get the damn toaster or handbag or whatever it was they were giving away.  The salesperson said to him, “your mind is like a parachute…it does no good unless it’s open.”  I have to say, I love the analogy, but for some reason it just didn’t work on my father-in-law.
Mystery Music Lyric:  She’s a good girl, loves her mama, Loves Jesus and America too — She’s a good girl, crazy ’bout Elvis, Loves horses and her boyfriend too — Answer.
My Market Watch:   Today is boring.  But tomorrow is the Jobs Report and it is never boring.   The interesting thing about the report is how traders react to the numbers…it’s all about expectations.  Traders expect about 162,000 new jobs to reported.  If the actual number comes out much less, then traders will interpret the report as a weak economy…less jobs than expected = crappy economy.  On the other hand, if there are more new jobs than expected, then traders will interpret the report as a strong economy…more new jobs = rising economy.  When traders feel the economy is doing well, they generally sell off bonds to free up money to put into stocks.  Conversely, if traders feel the economy is weak, they sell off stocks and put their money into bonds instead.  When traders sell off bonds, rates get worse and when they buy bonds rates get better.  I wouldn’t be surprised to see the number fall short of expectations and see rates improve.  Disclaimer

My Schedule:  Available all day.

• Expedited Turns Throughout the Process – 3 days for UW
• We will fund on a fax copy of the docs

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:   It’s May Day and that means my wife and daughter will pick flowers and deliver them anonymously to neighbors.  So, they’ll sneak up to the steps, put the flowers by the front door, ring the doorbell and then run!  A nice tradition we keep from my wife’s side of the family…I’m glad for this because I like traditions and this one from her family is sweet.  Besides, if we did things from when I was a kid we’d be leaving something slightly more obnoxious than flowers.

Mystery Lyric:   I’m singin’ in the rain. Just singin’ in the rain — What a glorious feeling, I’m happy again — I’m laughing at clouds, So dark up above — The sun’s in my heart, And I’m ready for love — Let the stormy clouds chase, Everyone from the place — Come on with the rain, I’ve a smile on my face — I walk down the lane, With a happy refrain — Just singin’, Singin’ in the rain — Answer.   

My Market Watch:  Bonds are falling this morning on an ISM report and presumably on statements made by the Fed.  As a result, stocks have picked up and traders are moving their money from bonds…when that happens rates get worse.  Rates started out today nearly unchanged from yesterday but since the news I just mentioned came out after our rates were published…I fear a price change may be happening if bonds fall even a little more.  Other than that, I can tell you vacancy rates for owner-occupied and rental properties dropped in the first quarter…I thought that was interesting….   Disclaimer

My Schedule:  I have a conference call this morning and an appointment immediately afterward…I won’t be available until around 10:30a.

• Expedited Turns Throughout the Process – 3 days for UW
• We will fund on a fax copy of the docs

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

“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 and for lender-paid we permit outsourced Contract Processing (NMLS Licensed) as a 3rd-Party Fee and therefore may be covered by YSP overage (excess rebate).  YSP overage also permitted for Prepaid Interest, Property Taxes, Hazard, and max $500 towards principal reduction.

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.