The mortgage Industry’s miraculous recovery since 2012 has been nothing but a farce; nothing but a temporary reprieve from the collapsing card-house of 2008.
You see, by purchasing $1.75 Trillion of mortgage backed securities (MBSs) that were originated before the 2008 financial crisis the Fed was able to provide much-needed liquidity to the secondary mortgage market.
This was the Fed’s “cure” to the loan industry’s self-inflicted cancer.
Now, 5-years later, the Fed HAS to get these MBSs off of their balance sheet and sell them back to wall street.
So ask yourself, if you were a MBS investor, where would you rather put your investment dollars;
A. low-risk, low LTV mortgages from pre-2008, yielding 6%+, that the government is liquidating
Or
B. High-risk, high LTV, newly-originated mortgages that are yielding 4%?
If you answered A, you are correct.
Next question:
What would current mortgage interest rates have to be increased to before you, as a MBS investor, would ever consider putting your investment $ into? 7%, 8%, 9%?
Whatever the mortgage market’s answer is to THAT question is what mortgage interest rates will rise to once the FED starts the great MSB liquidation sale.
So yeah, you better start recruiting loan officers by the truck load. Because once interest rates start ramping up close to 6%, the mass exodus of loan officers from the industry is going make 2008 look like a garden party.
MBS Highway is a communication tool that will help you improve your batting average and turn more conversations into applications. Every morning, you’ll receive a coaching video from Barry Habib which will help you beat your competition and be a true advisor in this rapidly changing environment.
The National Association of Mortgage Brokers is the voice of the mortgage industry representing the interests of mortgage professionals and homebuyers since 1973.
In addition to mandating members adhere to a professional code of ethics, NAMB provides mortgage professionals with education opportunities, and offers rigorous certification programs to recognize members with the highest levels of professional knowledge and education.
Ryan Hills and his team over at the RESource are great friends of ours. Tune-in their latest weekly episode right here on the home page of the National Real Estate Post. Ryan delivers fantastic content beneficial for both mortgage and real estate professionals.
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Are you finally starting to get it?
The mortgage Industry’s miraculous recovery since 2012 has been nothing but a farce; nothing but a temporary reprieve from the collapsing card-house of 2008.
You see, by purchasing $1.75 Trillion of mortgage backed securities (MBSs) that were originated before the 2008 financial crisis the Fed was able to provide much-needed liquidity to the secondary mortgage market.
This was the Fed’s “cure” to the loan industry’s self-inflicted cancer.
Now, 5-years later, the Fed HAS to get these MBSs off of their balance sheet and sell them back to wall street.
So ask yourself, if you were a MBS investor, where would you rather put your investment dollars;
A. low-risk, low LTV mortgages from pre-2008, yielding 6%+, that the government is liquidating
Or
B. High-risk, high LTV, newly-originated mortgages that are yielding 4%?
If you answered A, you are correct.
Next question:
What would current mortgage interest rates have to be increased to before you, as a MBS investor, would ever consider putting your investment $ into? 7%, 8%, 9%?
Whatever the mortgage market’s answer is to THAT question is what mortgage interest rates will rise to once the FED starts the great MSB liquidation sale.
So yeah, you better start recruiting loan officers by the truck load. Because once interest rates start ramping up close to 6%, the mass exodus of loan officers from the industry is going make 2008 look like a garden party.