Phil Grossfield's Blog

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.

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.

My Schedule…and a Little Extra:   Tonight’s the big night…whoever wins the game tonight wins the series, unless Oklahoma wins tonight in which case Miami still wins the series.   |   I’ve received a fair amount of questions about Net Tangible Benefits or NTB.  The simple rule is that a refinance must improve the borrower’s rate by at least 0.250% or the NTB test fails in which case the submission would be rejected.  Exceptions may be possible.  For example, if the borrower had a rate of 3.99% and the NTB would result in 0.240% improvement to the rate, we could make an exception for this.  Although I have no clarification just yet on other possible exceptions, I’m sure an argument could be made to justify the benefit.  Of course, going from an ARM to fixed rate is an acceptable NTB without the 0.250%.  But if you have a scenario that you unsure about, run it by me and we’ll get it figured out.  Let me know if you have any questions, okay?

My Mystery Lyric:  I wish you would step back from that ledge my friend — You could cut ties with all the lies that you’ve been living in — And if you do not want to see me again — I would understand…I would understand  — Answer

My Market Watch:  Stocks opened better today to take some gains from yesterday’s losses.  As a result, rates are a little worse than yesterday.  Today there is little news.  Disclaimer

My Schedule:  I have one appointment today at 11a so I will be unavailable until about 12p.

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.  Let me know if you have any questions, okay? If you have a rate of 3.99% and the refi would result in a rate improvement of 0.240%, that is also acceptable.

New Procedures From Me Available Here:  MY PROCEDURES

BONDS GETTING WORSE AS STOCKS RALLY!
RATES:  Pricing Engine (password is required)   Rate Sheet for Today (no password required)   InterBank Product Matrix (no password required)

My Schedule…and a Little Extra:   I told you so!  Miami is too good.  When they’re on they cannot be stopped.  If either Wade or James gets hot, it’s over.  Then you throw Bosh back into the mix…game over…series over.  The only thing preventing them from winning it all is their coach since he hasn’t figured out a way to win a close game.  But even if they fail to win the title, I think he deserves one more year to figure it out.  Anyway, for all of you that told me I was wrong for picking Miami, and in advance of them winning tomorrow, I say I TOLD YOU!

My Market Watch:  Stocks are rallying and bonds are taking a hit this morning.  Remember, there is usally an inverse relationship to stocks and bonds…when stocks get better, bonds usually suffer and when that happens, rates worsen.  This is occurring now after rates have already been published so watch out…it wouldn’t be a wild prediction to see a mid-day rate change if this continues…  DO YOUR OWN RESEARCH!  Disclaimer

My Schedule:  Available all day….

Net Tangible Benefit:  0.250%:  in order to refinance, a borrower’s rate must improve by 0.250% to meet the NTB test.  Let me know if you have any questions, okay?

New Procedures From Me Available Here:  MY PROCEDURES

My Schedule…and a Little Extra:   My 11-year wedding anniversary is coming up in July…it’s my year to plan.  The real challenge is that my wife is super giving…super thoughtful…and when she buys a gift or plans the night, there is usually a theme involved.  This is of course an impossible standard for any typical man to live up to.  I usually do my shopping and planning relatively close to the celebratory date.  I have learned over the years that the dates on the receipts are extremely important to my wife.  She is a handful, but the rewards of being married to her outweigh these tasks.  So, I’m planning a month in advance which for me is years in advance.  I have the babysitter lined up already…check that off the list.  I have a couple of gifts lined up…check gifts off the list.  Of course a theme to these gifts would be nice but I am a man after all…we’ll see if I can pull that off later.  The real challenge…the night itself…what to do?  Where to go?

My Mystery Quote:   I am not I.  I am this one walking beside me whom I do not see, whom at times I manage to visit, and at other times I forget — who remains calm and silent while I talk, and forgives, gently, when I hate, who walks where I am not, who will remain standing when I die  — Answer

My Market Watch:  It’s an interesting day.  China in an effort to support growth in the economy cut its interest rate by 0.250% which would normally cause American stocks to get better and bonds to get worse.  However, back in America there is talk about Quantitative Easing to offset the European nightmare…this talk makes traders prefer bonds over stocks and when that happens rates stay strong or get lower.  This morning Federal Reserve Chairman Ben Bernanke left the door open on Quantitative Easing…as a result, bonds are doing well and are up 25bps from yesterday.  Nonetheless, our rates have come out almost exactly the same as yesterday so it wasn’t enough for our Capital Markets to improve pricing.  In case you were wondering, Quantitative Easing 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.  What’s interesting is bonds generally improve on comments about QE, but pricing has simply held steady from yesterday.  Disclaimer

My Schedule:  Available all day…happy hour starts early today.

New Procedures From Me Available Here:  MY PROCEDURES

BONDS DETERIORATING

The Fannie Mae bond dropped down 22bps this morning and has since bounced back a little.  If you’re rate sensitive, this is a scary thing to see happen.  It may be a little early to anticipate a price worsening, but as a price leader, Interbank has been known to pull the mid-day rate change earlier than some other lenders when seeing market volatility.

Please do your own research in deciding what to do…my email is only a courtesy.  Disclaimer

My Schedule…and a Little Extra:  I love Kevin Garnett but Boston is probably going to lose.  Garnett was a long-time Minnesota Timberwolve and being a Minnesotan I’ve always loved watching him play…he is the ultimate competitor who gives every bit of his heart.  And Boston has a good cast…I mean Rondo is sick with some of the passes he attempts.  But Miami is too good, even without Chris Bosh.  That said, the biggest problem Miami has is their coach.  The man has not been able to design a game winning play all season.  The Heat are 0-10 in games with a chance to win with less than 30 seconds remaining.  That’s when the coach has to make his money…he has to have a game winning strategy…a play…ANY PLAY!  In the last couple minutes of a game Miami looks like their Queen Bee got killed and the soldiers have no idea what to do.  For Miami to win, they need to be ahead going into the final two minutes of the game.  Otherwise, Boston has a shot. 

My Mystery Lyric:  Gotta make a change, For once in my life — It’s gonna feel real good, Gonna make a difference, Gonna make it right — As I turned up the collar on, A favorite winter coat, This wind is blowing my mind — I see the kids in the street, With not enough to eat, Who am I to be blind Pretending not to see their needs — Answer

My Market Watch:  The Jobs Report on Friday was awful and as a result rates got better while stocks got killed.  The reason was simple…with such an ugly economic report traders put their money into bonds rather than stocks.  Well, today traders are taking some of those gains from bonds on Friday and are selling them off…as a result rates today are slightly worse than Friday…but not by much.  There are no other major economic reports today so unless there is some geopolitical news I expect rates to be steady throughout the day.  Disclaimer

My Schedule:  I have a doctor appointment today at 10:30 and will otherwise be available.

My Schedule…and a Little Extra:  Vivid dreams lately I have had.  I’ve been calling on the force for guidance…this issue with my daughter at school has had an effect on my dreams.  But it’s the latest development that irked me.  To recap, my daughter had an issue at school where she and her best friend were separated at the other girl’s parent’s request.  These people do not  like us, I now believe.  Why, I do not know.  There’s an old saying that what other people think of you is none of your business.  But the other girl’s father crossed the line…he was picking up his daughter at school the other day when my daughter ran up to him and said, “Hi Mr. Last Name!”  My wife was standing behind and said he completely ignored my seven year old daughter.  So, my daughter said “Hi!” again…no response.  So then my daughter, in an attempt to be as sweet as possible said, “Mr. Last Name, would you like me to call you by your first name instead?”  He ignored her…she turned, head down to my wife.  My wife was shocked.  What is wrong with this person?  Why does he ignore a seven-year old child?  What lesson is he trying to teach her?  The Dark Side, his thoughts might be controlled by.  Yesterday was a year-end class celebration with parents attending including me…I was nervous that he might be there.  I know what I want to do…but light-saber’s are not permitted on campus.  Light Sabers, the answer they are not.  The good in people I must embrace…the force, I must trust in.  He was not there but his wife was…I approached and apologized.  Yes, I apologized…for anything I might have done to offend her or her husband to justify such behavior.  Maybe it was a little passive-aggressive, but I didn’t know what else to do…and I left my light saber at home.

My Mystery Quote:  On many long journeys have I gone. And waited, too, for others to return from journeys of their own. Some return; some are broken; some come back so different only their names remain — Answer

My Market Watch:  The Jobs Report came out this morning…it was incredibly weak.  I read in one article that it was simply awful and deeply disappointing.  When traders interpret economic reports as weak for the economy, they typically sell off stocks and invest in bonds.  When they invest in bonds, rates improve.  And improve they have…again.  I’m just flabbergasted at how low rates are.  Are you calling everyone you know?  Remember, do not refinance if by doing so would violate an EPO clause…make sure the timing is right.  At Interbank, our EPO clause is 150 days which is calculated from the funding date of the last loan to the funding date of the new loan.  Let me know if you have any questions, okay?   Disclaimer

My Schedule:  I am behind the computer all day. Have a wonderful weekend!

My Schedule…and Nothing Extra:  You could be dead tomorrow morning.  You could be 52 years old, with 3 daughters and an extended family that loves you.  You could have dreams not yet attempted.  You could go to sleep after a long day, and never wake up.  This is the fate of Steve, the son of my parent’s long-time friends.  The funeral procession is underway in Minneapolis and my thoughts are with their family.  LIVE!  DO!  BE!  POSITIVELY INFLUENCE THOSE AROUND YOU!  Remember, you do not have a soul…you ARE a soul (you have a body).

My Mystery Quote:  You do not have a soul…you ARE a soul (you have a body) — Answer

My Market Watch:  Not going to waste your time…nothing to report at this time.  Disclaimer

My Schedule:  I am behind the computer all day. Have a wonderful long weekend!

Contract Processors Available For Hire

If you are interested in receiving the list, please let me know….

Delayed Financing Cash Out – Refi Of Property Bought For Cash Within 6-Months

We now allow Delayed Financing Cash Out which will be a cash out transaction that occurs within 6-months of purchase.  To explain, your client bought a property for cash and now wants cash out…there is no existing lien on the property…Fannie Mae’s rule regarding six month’s title seasoning is avoided.  Let me know if you want details….

Turn-Times:

Purchases:      3 days from Submission (after registration)…prioritized throughout the process.

Refinances:     5 days from Submission (after registration)…45-day locks still recommended.

Conditions:     48 hours from last uploaded document.

Our Lender Fee is only $699 “All-In”

“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.  Contract Processing Fees may be charged to the borrower on borrower-paid only (box 1).  YSP overage also permitted for Prepaid Interest, Property Taxes, Hazard, and max $500 towards principal reduction.

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

My Schedule…and a Little Extra:  We met with the principal and I feel much better today than I did yesterday.  I’ve come to believe that the other’s girl Mom is nutty and I believe most of this craziness is a result of her obsessive and delusional parenting.  I am glad this school year is almost over.  This summer my goal is to ensure my daughter’s confidence level is at an all-time high.  I have always tried to encourage her to be strong and not rely on others…this is why I was dead set against Disney movies where the poor helpless princess was in dire straits until the handsome strong prince showed up to save her.  I don’t want my daughter to feel she needs to be saved by anyone.  I want her to be strong, positive and dependent.  She’s a Grossfield for the love of all things holy in this land!   |   I have not watched American Idol but my Mom told me who won.  I’m looking forward to watching his performances…he definitely deserved the title.

My Market Watch:  Rates are worse today but only by 0.125 in most spots…no tragedy.  Rates are being affected mostly due to news in Europe since the 5-year note auction yesterday was uneventful and today’s 7-year note auction is not expected to be a barn-burner.  .  Disclaimer

My Schedule:  I am in Los Angeles today with appointments at 10:30a and 3p and then driving home late.

Contract Processors

I have compiled a list of contract Processors available for hire.  If you are interested in receiving the list, please let me know….

Delayed Financing Cash Out – Refi Of Property Bought For Cash Within 6-Months

We now allow Delayed Financing Cash Out which will be a cash out transaction that occurs within 6-months of purchase.  To explain, your client bought a property for cash and now wants cash out…there is no existing lien on the property…Fannie Mae’s rule regarding six month’s title seasoning is avoided.  Let me know if you want details….