Brian Stevens

Mortgage Shots

October 28, 2014

Thoughts on today.

Facebook Unfriending Spree

 

Question; have you been the recipient of a Facebook “unfriender” lately.   Or perhaps you’ve gotten sick of looking at posts or hearing from people that, frankly, bore you too death.   I was, at one point, an unabashed facebook friend collector.  Those days, like the housing crisis, are over; right?  The thing is a new app is sweeping facebook users called “duster” and it allows Facebook users to clear out some of their collection.  So is this a good idea.

Personally, I go back and forth on the idea.  For starters, I find much of what my FB friends say boring, partisan, and occasionally offensive; all good reasons to “dust” them.  However, I’ve occasionally found things useful from those I’d probably like to disregard.  So from a personal standpoint I’d say go for it, from a professional standpoint, I’d say give it more consideration.

Now if you’re in sales and your job description is to communicate, the equation is simple more + people = better.  However this doesn’t address some of my personal or private issues of “hearing stuff I’d rather ignore.”  So here’s what you do.

One, create a business page.  This one’s simple and can be accomplished in a matter of minutes.  Then you send out an invite to your existing FB database inviting them to your business page.  At that point, run duster and clear out your personal page.

The second solution is even easier.  Every FB friends profile page has a “close” tab that you can hit that will keep their posts on your timeline.   You can also mark them as an acquaintance which will keep their posts on the sharp end of the pitchfork.   So as posts appear, check it out, and see they pass the stink test.

Remember, FB has more users that all your other social sites combined.  So as a loan officer, if you like it or not, is really not the question.   How you manage your account is probably a better question.

Too loose too tight.  Morals or Mortgage Products.  

HUD Secretary Julian Castro recently spoke at a realtor.com townhall and said “Millenials need a clear path to homeownership.”  That clears it up.  Thanks Mr. Obvious.  He then goes on to say (I’m paraphrasing) “lending was too loose now it’s too tight.”  Thanks again.  It’s worth pointing out that this is coming from the head of an agency that has underwriting guidelines that lend to people with sub-600 scores and stretches income ratios for some low to moderate income households.

I just noticed  mortgage master inc. is offering a 95% CLTV second, while other mortgage companies seem to be following suite.  Now if you believe that homeowners should have some “skin” in the game, 95% CLTV is scapeing the kee’s of that philosophy while leaving a bit of skin, while HUD’s $100-Down Program, DPAP’s, VA, & USDA, do no such thing.  Again in some instances with lower credit requirements & exceptions for stretched DTI’s.  Really an interesting dichotomy when you consider HUD’s Castro says “lending is too tight” while pushing loans that would make past years subprime lenders blush.  Yet that’s the world we live in.

Know before you owe? or NO before you owe!!

That is the question.  Agencies have pushed and the industry has followed the march intended to give consumers the opportunity to understand their mortgage prior to completion.  I’ve maintained and results have confirmed that consumers really don’t give a crap about reading more disclosures and articles on disclosures on top of their mountain of paperwork and disclosures that are thrown at them during the mortgage process.

I understand the philosophy but unless you have ready and willing participants nobody’s going to read this stuff.   It’s not that they shouldn’t it’s just that they won’t and no matter how much more paper you throw at the situation they’re not gonna read it.   With that said, the Mortgage Bankers Association came out with forms for Lenders, Real Estate Agents, and Consumers, so they can understand TRID.  Oh to be a fly on the wall of those analytics.  I think the over/under on clicks is probably about 500 on each field.  If I were a betting man I’d bet the over on lenders and fell kinda-ok and bet the under on Real Estate Agents and Consumers and feel real good about it.  It’s not that the information is bad, quite the contrary, it’s the simple fact that consumers just don’t care.   Until Millennials come of age and get off Mom and Dad’s couch and buy their own homes, the process will remain a “belly to belly” business.

One last thought on this, the marketing site “Listing Booster” has linked the CFPB’s website “know before you owe” to all of its marketing pieces.  Considering the company produces over 100,000 consumer facing marketing pieces each month, that makes them the biggest distributor of linkable impressions of any marketing company in the country.  With that said, I doubt many consumers will click the link or read the information if they do.

A Job Well Done!

Speaking of the MBA, they announced their new leaders for its Independent Mortgage Bankers Network.  They are Eric Gates, CRMS, CMPS, President of Apex Home Loans, Inc., and William Lowman, President of American Pacific Mortgage Corporation.  The Community Banks and Credit Unions Network will be chaired by Fowler Williams, CMB, President and Director of Crescent Mortgage Company, a wholly owned subsidiary of CresCom Bank.

Now if you’re wondering what they’re task will be.  Pete Mills of the MBA said it’s to ensure “key segments of the industry are reflected in MBA’s advocacy and education efforts.  The networks also provide a valuable forum for community-based lenders to share information on emerging industry trends and challenges in meeting the needs of American Home buyers.”  Sounds good; kinda leaves the door wide open though.  We’ll see.  Either way, congratulations.

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