On your mark, get set…Close!
Conforming and FHA loan limits are set to rise substantially, at least for a little while. ‘The economy sucks’, thus interest rates and their underlying indices shall remain low. Fertile grounds for a mini boom of refinancings and purchases are being tilled.
This time around borrowers and mortgage professionals can expect logical underwriting standards to prevail, no more NINJA loans (No Income No Job or Assets)…no more faking it. Refi Boom 2.0 won’t last years, probably months. This is a real opportunity for floundering, yet honest, MoPro’s to rise like a Phoenix and affirm their position amongst this new, less crowded, marketplace.
If I were still originating mortgage loans…I would:
- Find every borrower in my file cabinet (hopefully you employ a database marketing strategy) that has a loan amount between $417,000.01 and $650,000 (or the loan amount difference between new and old FHA guidelines)…also look for other positive indicators, like 660+ FICO scores, Full Income and Asset documentation, Primary Residences, <90% LTV’s, etc
- Send them a letter, an email and dial them up on the tele’ informing them of their good fortune.
- Be honest and show the client what they qualify for, Par Rate plus pricing.
- Close, close, close.
Fannie and Freddie are the big dogs on the street again. Learn to play their game by their rules and stay in business.
