Mortgage Minute Newsletter
From Sam Thompson,  Senior Mortgage Advisor    Nov 2007- Vol 1, Issue 25
In This Issue
Who we are.
Thanksgiving is this week!
Buyers need good representation!
Weekly Tip - Maybe your buyers need to rent out their old house so they can move on with their lives...
Weekly Mortgage Market Commentary.
Quick Links
Who we are.
 
mtlaurel
 

Our Corporate Campus in Mt. Laurel, NJ

PHH Mortgage is one of the top ten originators of retail residential mortgages in the United States.  We offer you unsurpassed service, a full range of programs at competitive rates, and the smoothest mortgage experience in the industry.

In 2006 alone, PHH Mortgage provided $41 billion in mortgage financing for American homes, and every day we help more people fulfill the dream of home ownership.

PHH Mortgage operates out of two main facilities in Mount Laurel , NJ and Jacksonville, FL - employing a combined total of more than 5,200 team players.

 

We've received numerous awards, including we were recently ranked #1 by Inside Mortgage Banking and Campbell Institue for our reliable Good Faith Estimate and our dependable closings.  Best 100 Places to Work in IT (Computerworld), Top 25 Companies that Care, Training Top 100, and more.  And, we constantly receive 98%-100% "I would recommend" ratings from buyers AND realtors in post-closing surveys.

 

CALL US SO YOU CAN SEE HOW WE DO IT!

 ____________________

 
What to expect at closing.
whattoexpect
Dear Sam,
Sam
Did you know there are 4 types of buyers?
 
If you read the Feel, Felt and Found negotiation tip for your initial FSBO prospecting that I sent out last week, here is the rest of the story...
 
Just make sure that you leave the door open for calling your FSBO back a couple of weeks after the initial visit and ask them this question... 
 
"Are you getting any buyers?" 
 
Then pause for their answer and then say...
 
"Did I tell you that there are 4 types of buyers?  That's right, there is the investor that is looking for a house to fix up and flip or rent, then there is the contingency buyer that has contingencies along with their offer, then there is the first-time home buyer and finally the relocation buyer." 
 
Then follow-up with this question!
 
"Which ones are you seeing?"
 
When you ask these questions, according to Danielle Kennedy, they'll usually say investors and contingency buyers.
 
Then you can say...
 
"I was afraid of that, those are the worse kinds of buyers.  The investors love FSBOs because they are looking for a deal and not willing to make any reasonable offers and the contingency buyers have so many things that have to happen, many times their deals never happen and you end of spinning your wheels and losing a lot of time, energy and money."
 
"Did I mention that we get a lot of first time buyers that like working with realtors because they don't know what they are doing and we get many relocation buyers with our national brand recogition and through our MLS internet listings..."
 
Hopefully, this education process is going to help you show your expertise in real estate so you can secure more listings soon and then you can tell them about your great mortgage partner!!
 
That would be me!!  ;)
 
Sam Thompson
PHH Mortgage
Senior Mortgage Advisor
 
'The FHA and VA Guy'
 
843-230-7929
Thanksgiving is this week!  Did you know that?
 
 
thanksgivingturkey 
 
 

If you are like me, Thanksgiving has really slipped up on you this year.  And Christmas is right around the corner which makes any deals you are working on very testy.  As most of you know, closing a home with a buyer getting a mortgage is an orchestration of people and paper and many things have to happen in a timely manner especially with the tightening of the credit lending markets right now. 

 

When the holidays come around, people are taking off like mortgage processors, attorneys, inspectors, appraisers, etc. and even the buyers and sellers are harder to get in contact with so this complicates everything for all of us.

 

BUT, WE CAN MAKE YOUR LIFE EASY!!

 

If you will rely on us, here's what you get...

  • We were recently ranked #1 by Inside Mortgage Banking and Campbell Institute for our reliable good faith estimates and dependable closings.
  • Our processors and underwriters are in the same building and on the same floor.  In fact, they are right next to each other so the processing is not cumbersome like with many lenders and brokers that have no control over the process at all!
  • We have very professional, well-trained processors that constantly receive 98-100% "I would recommend" ratings from our post-closing surveys from borrowers AND agents!
  • Our processing and sales team is set up under a team environment so that if your processor or sales consultant is busy helping another client, you can quickly get a colleague or someone from our Agent Help Desk to assist you.  Just hit '0' and someone will assist you.  Or you can call me!
  • We still have great programs for approving buyers with questionable credit, 100% financing options like FHA with a Nehemiha Grant, Landscape or Program 100, 30 yr fixed rate, Special Financing Programs, manufactured homes, interest-only programs under a fixed rate or LIBOR ARM, etc.
  • We have special Govie teams for your FHA and VA buyers so they'll close smooth and easy.
  • Our quick phone in, move in pre-approval process getting our scenario underwriters involved up front so you'll get a real pre-approval over the phone in 30 minutes so you can get your buyers in your car and start showing houses in a hurry.
  • We have Spanish Speaking Teams and translators for just about every language in the world.
  • We guaranty a same day approval and your closing dates!
  • We strive to treat everyone like family...

I could go on and on...

 
 
Don't trust your buyers with just any lender, especially during the holidays, call us so you can rest easier with your family and friends!!
 
 
Special Plea:  For those of you that haven't tried us yet, why won't you give us a try?  For many reading my emails, many have never given me a chance to win your business and it's been over 2 years for some of you.  Even guys in prison for harsh crimes have served shorter sentences than that!  I would be deeply honored to serve you and I promise to do the best that I can if you will allow me the chance.  Thanks for reading this and I hope to hear from you soon! 
 
For those of you that continue to call me, I am very thankful for your business and I hope that you have many fond memories this holiday season.  My family and I are very blessed to have your trusted support.

 
Buyers need good representation!   Let them know this!
 
 
housecouple
Buyers' agents make it happen!
 
When you are explaining the importance of having a good agent to represent your buyers, make the sports analogy...
 
"Just like the top college athletes that always get a good agent to help them land a good contract for their talent in the pros, home buyers need a good agent to help them too..."
 
This analogy will help your buyers quickly sign your buyer agency agreements and then you can work your magic.
 
If they are still not convinced, here are a few things that you might be able to mention to them in describing how you can help them:
  • You go through an extensive interview process to make sure you know exactly what they are looking for and then you help them find the best properties currently on the market.
  • You constantly watch for new listings that fit their criteria too so they do not miss out on hot properties that they might not have known about.
  • You educate your buyers on the schools and what properties are in their favorite school system districts. 
  • You provide them with tools to help them understand the entire process and help them in finding properties online themselves so that together, you can find something that meets their criteria.
  • You have a network of professionals providing all kinds of services like mortgage needs, insurance needs, moving and storage needs, inspections, warranties, pest control, security systems, contractor services, etc.
  • You help them with the negotiations to make sure that they are getting the best deal that they can for them and their family.
  • You make the entire process go smooth and easy so they do not have to worry with constant communication and professional services.
 
Educate them more on what services should be expected from Buyer's Agents and how you do it!  Then, when they start comparing you to other agents in town, you are bound to win their business!
 
 Weekly Tip -  Renting out their old house might be good advice right now for some markets.
 
for rent
 
For some properties in some regions, this might be the answer.

With many areas of the country that are not selling very well right now, maybe your buyers would be better off to rent out their existing home that they are trying to sell for a year and then see if things have improved.  If you have a buyer in this category, we'll be able to use 75% of the expected gross rental income to offset the existing mortgage in helping their total debt-to-income ratios. 

 

I know that this may be obvious but maybe you can explain it this way...

 

The housing market goes through ups and downs usually occurring every 5 years (up 2.5 years then down for 2.5 years).  Well, this is the end of year 2 of the downturn according to the 'experts' but we are still waiting on signs of an upturn that may be delayed due to many things that is effecting our economy right now that you see on the news and read in the papers.  

 

But, in case you are convinced that the 'experts' are right about our housing market,  I thought I would share with you some historical comments made about real estate over the last 6 decades.  It just goes to show that all markets constantly change if we will just hang in there while it runs it's course.

  1. "The price of houses seems to have reached a plateau, and there is reasonable expectancy that prices will decline." (Time Magazine, December 1, 1947)
  2. "Houses cost too much for the mass market. Today's average price is around $8000, out of reach for two-thirds of all buyers." (Science Digest, April 1948)
  3. "If you bought your house since the war, you have made your deal at the top of the market. The days when you couldn't lose on a home purchase are no longer with us." (House Beautiful, November 1948)
  4. "The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs $28,000." (Business Week, September 4, 1969)
  5. "Be suspicious of the 'common wisdom' that tells you to buy now because continuing inflation will force home prices and rents higher and higher." (NEA Journal, December, 1970)
  6. "The median price of a home today is approaching $50,000. Housing experts predict that in the future price rises won't be that great." (National Business, June 1977)
  7. "The era of easy profits in real estate may be drawing to a close." (Money Magazine, January 1981)
  8. "In California for example, it is not unusual to find families of average means buying $100,000 houses. I'm confident prices have passed their peak." (John Wesley English and Gary Emerson Cardiff, THE COMING REAL ESTATE CRASH, 1980)
  9. "The golden age of risk free run-ups in home prices is gone."( Money Magazine, March 1985)
  10. "If you are looking to buy, be careful. Rising home values are not a sure thing anymore." (Miami Herald, October 25, 1985)
  11. "Most economists agree, a home will become little more than a roof and a tax deduction, certainly not the lucrative investment it was through much of the 1980s." (Money Magazine, 1986)
  12. "We're starting to go back to the time when you bought a home not for its potential money making abilities, but rather as a nesting spot." (Los Angeles Times, January 31, 1993)
  13. "Financial planners agree that houses will continue to be a poor investment." (Kiplinger's Personal Financial Magazine, November 1993)
  14. "A home is where a bad investment is." (San Francisco Examiner, November 17, 1996)
  15. "Your house is a roof over your head. It is not an investment." (Everything You Know About Money Is Wrong, 2000)

Since the 'talking heads' on TV and 'experts' are keeping potential buyers out right now, you might want to explain to your buyers that they might want to think about renting out their existing home for now until things settle down.  Then they can move on with their lives by buying another home now without selling their home for a loss.  The sooner more buyers start buying, nationally, the better off we are all going to be.

 
The good news for most of us is that our market is still doing okay despite other areas of the country that in a declining market and this is something that I am very thankful for this Thanksgiving season!
 
 
Weekly Mortgage Market Commentary
 
Don't let the financial markets squash your clients and your transactions!  Stay informed by reading my new daily "Daily Rate Lock Commentary" or just call me to find out what is going on!  If you want to be included in this distribution, just call or email me.  Remember, knowledge is power and the more educated you are in your industry, the higher quality buyers you are going to attract and that means easier closings, bigger houses and more money in your "hip national bank!"  And since rates are still climbing, call us to get your clients in our 90 day rate protection as soon as possible!

fingerhead
 

This holiday-shortened week brings us the release of only three factual economic releases. However, none of them are not likely to affect mortgage rates much. The bond market is expected to close early Wednesday and Friday and be closed the entire day Thursday in observance of the Thanksgiving Day holiday. In addition, I expect to see light trading in the financia l markets most of the time that the markets are open.

The first report of the week is Tuesday's release of October's Housing Starts. This data gives us an indication of housing sector strength, but usually does not have a noticeably impact on mortgage rates. I don't expect this month's version to be any different unless it varies greatly from analysts forecast. It is expected to show a decline in starts of new homes.

Also Tuesday is the afternoon release of the minutes to the last FOMC meeting. These may be a major mover of the markets or could be a non-factor, depending on what they say. The key will be concerns over inflation and the Fed's next move. If the Fed members were concerned about inflationary pressures, we may see the bond market move lower and mortgage rates higher Tuesday afternoon. However, if they indicate a likelihood of another rate cut in the coming months, we should see the bond market rise and mortgage rates drop during afternoon tradin g.

The next data is the Conference Board's Leading Economic Indicators (LEI) late Wednesday morning. This index attempts to measure economic activity over the next three to six months and can directly affect the bond market and mortgage rates. It is expected to show a decline from last month's reading. The forecasted 0.4% drop would indicate slower economic activity over the next few months, which is considered to be good news for the bond market.

The revised November reading to the University of Michigan Index of Consumer Sentiment will also be posted late Wednesday morning. Analysts are expecting to see no revision to the preliminary reading of 75.0. Unless we see a significant variance from the forecasted reading, I don't think this data will cause much movement in mortgage rates Wednesday.

Overall, I expect see bond trading get lighter as the week goes on as more traders head home for the holiday. If we get any significant surprises or unexpected new s this week, bond prices will move more than usual due to the thin trading. But, if we see no surprises, it should be a fairly quiet week for mortgage rates. With the little likelihood of much improvement in rates, I am holding the Lock recommendations.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Lock if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

©Mortgage Commentary 2007

 
 
 

 

laptop demo

 
Let me know if I can take an application for you anytime!  And, please let me know if you like the format of this email service.  I hope you are reading these so you can stay up on your profession and so you can make more money too!
 
Also, I am available to do a "Hit the Ground Running Workshop" with any agents interested in learning tons of things they can do to help them succeed in Real Estate.  I need at least 5 agents, brand new or experienced, looking for some motivation to put this on for you that will take 2-3 hours, depending on your involvement!  These are designed to be interactive so you can learn more about yourself and so you will walk away with a stronger sense of self-confidence too.

These are fun and motivational!
 
If you don't get at least 10 great ideas that can really help your business, I'll take you to lunch and give you a few more!
 
What are you waiting for?  Gather support with 4 of your colleagues and call me today!
 
 
 

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We'll guarantee your closing date.  We're so confident that we will close when you say so, that if we don't, we will reduce your interest rate by 1/8 of one percent for the life of your loan.*

 

We offer FREE pre-approvals to qualifying homebuyers!  With a mortgage pre-approval, you can shop for the home of your dreams with confidence. You'll know just how much you can afford and increase your negotiating power. **

 

We take pride in being a lender you can trust.  As our mission states, "we promise to treat customers like family." We take this oath seriously, and our goal is to provide you with the superior service you deserve - guaranteed.

 

* Approved, conventional, purchase loans only. Closing date to be mutually agreed upon between customer and bank, and customer must provide all required documentation. Timely request for payment under guarantee is required. ¹Inside Mortgage Finance, Copyright 2006

 
 
 
 
I hope you have a great week this week in real estate.  Call me if I can help you with that!!

Sam Thompson - "The FHA and VA Guy"
PHH Mortgage
Senior Mortgage Advisor

 
 
843-230-7929