| Mortgage Minute Newsletter From Sam Thompson, Senior Mortgage Advisor. Sept 2007- Vol 1, Issue 16
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Quick Links
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| Who we are. |
 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
Best 100 Places to Work in IT (Computerworld), Top 25 Companies that
Care, Training Top 100, and more. And, we were recently ranked #1 by
Inside Banking for our reliable closings and accurate Good Faith
Estimates and we constantly recieve 98%-100% "I would recommend"
ratings from buyers AND realtors in post-closing surveys.
CALL US SO YOU CAN SEE HOW WE DO IT! |
| Dear Sam, | ||
Feedback - helps us improve!
I attended a "Work Teams That Work", workshop in Atlanta several
years ago with several of my collegues that drove home the fact that
work teams need feedback to survive and excel in problem solving and in
getting results.
I recognize the importance of feedback and teamwork and I try to give my teammates and collegues feedback whenever I can.
If you will give ME feedback on anything that I do or don't do, I
would greatly appreciate that too. My family is depending on me to
provide for them and if I can improve on anything, I would really like
to know so I can improve my service to you.
Thanks in advance for your feedback! ;)
PHH Mortgage
Senior Mortgage Advisor 843-230-7929
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What to expect at closing.
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| Alan Greenspan interviewed on 60 minutes. |
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Retired Fed Chairman, Alan Greenspan, still very influential.
Financial managers read everything they can to keep their clients informed and so they can answer their questions intelligently when their clients call them. When Ben Bernanke and Alan Greenspan talk, it means money! Their comments drive business because what they think and say can effect what happens mostly by the excitement or nervousness it generates in the public creating that sense of urgency that helps them get people to make buy or sell decisions. Don't kid yourself; financial managers live for comments made either on TV or in print. I am sure that these money managers on Wall Street meet every morning to discuss what was in the papers and what to tell their clients and who to call to get them to buy or sell. This highly volatile market we are in now with spikes and sell-offs has got to be making these guys a killing. The
famous line from "Trading Places" when Mortimer and Winthorpe Duke were
educating Eddie Murphy on the stock market... "Tell him the good
part... The good part is that no matter whether our clients make money,
or lose money, Duke & Duke get the commissions."
Well, did you watch Alan Greenspan on 60 minutes last night? Well, not to worry, I did and here's what he had to say about our current subprime meltdown and Ben Bernanke's handling of it. On
the topic of the subprime lending problems, he said "I was aware that a
lot of these practices were going on but I had no notion of how
significant they had become until very late. I didn't really get it
until very late in 2005 and 2006."
He
insisted that there was nothing that he could have done to help offset
the practices and he was urged to do so while in charge. He says that
there is really no way for banking regulators to do that effectively.
He said when Lesley Stahl questioned him on why they didn't even look
into the practices that there was really nothing to look into.
Lesley
questioned him on keeping the interest rates too low for too long at
historically low levels for 3 years while the housing bubble was
forming with his 13 interest rate reductions which many economists say
contributed to the subprime problems. Greenspan fired back with the
fact that he raised interest rates at every meeting from June of 2004
until he left office and that it was the job of the Fed to to unfreeze
the banking system if we wanted the economy to function. This required
that they keep rates modestly low.
Lesley
also said the the Fed governors that worked with him are now saying the
he kept rates too low for too long and he said that he thinks that they
are mistaken.
Lesley
questioned him on Bernanke's handling of the current crisis and that
many have said that he would have reacted more aggressively by throwing
more cash and liquidity into the system more quickly to ease the
pressure. He says that he is not sure that is true because when he was
able to react that way because inflation was easing and you could react
quicker but that it is a different world now. He says that Bernanke is
doing an excellent job.
Regarding
our current economy, Lesley told him that the CEOs of Ford and Chysler
are begging on their hands and knees for interest rate cuts from
Bernanke and Greenspan says that they should focus on building better
cars for their customers...
Lesley
pointed out that Greenspan guided us past 9/11 and kept us out of a
recession for 10 years during his tenure as the Chairman of the Fed.
What
can you take away from his comments in my opinion? That all is being
managed well and that we are in good hands with his successor, Ben
Bernanke from Dillon County, SC. And that we will get past this
mortgage meltdown and that the Fed has to remain focused on keeping us
out of a recession or an inflation and that keeping the banking
industry happy is the best way to manage that.
Will
Ben Bernanke cut the "Primary Discount Rate" that makes it cheaper for
commercial banks to borrow from the Fed when they need to in an
emergency situation this Tuesday like many expect him to do?
Probably. Will this help our mortgage rates? Maybe or maybe not.
Depends on what has already been built into the current mortgage rates
with this widely expected action and what else happens. We'll just
have to wait and see. And, if he lowers by less than people think he
will, this can have a negative effect on our rates...
Make sure to read the Mortgage Rate Lock Commentary below!
So, just get all of your buyers to CALL ME so I can get them into a RATE PROTECTION loan registration that protects their rate AND allows them to FLOAT DOWN
up until 5 days prior to closing to take advantage of any rate
reductions that may happen while protecting their rate for up to 90
Days.
This way, your transaction is protected too!!
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| The Key to Sales Success - by Brian Tracy |
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The Insurance Sales Gang strikes again!
The Key to Sales Success Learn to Listen Well A vital key to sales success is listening. The ability to listen well is absolutely indispensable for success in all human relationships. The ability to be a good listener in a sales conversation is the foundation of the new model of selling. It leads to easier sales, higher earnings and greater enjoyment from the sales profession. Being A Good Talker is Not Enough Many salespeople have been bought up with the idea that, in order to be good at your profession, you must be a glad-hander and a good talker. You have even heard people say, "You have the 'gift of the gab'; you should be in sales!" Focus On the Other Person Nothing could be further from the truth. As many as seventy five percent of all top salespeople are defined as introverts on psychological tests. They are very easy going and other-centered. They would much rather listen than talk. They are very interested in the thoughts and feelings of other people and they are quite comfortable sitting and listening to their prospects. They would much rather listen than talk in a sales situation. Poor salespeople dominate the talking, but top salespeople dominate the listening. Practice "White Magic" With Everyone Listening has even been called "white magic." It is too rarely engaged in by business people. When a salesperson develops a reputation for being an excellent listener, prospects and customers feel comfortable and secure in his or her presence. They buy more readily, and more often. Practice the 70/30 Rule You've heard it said that God gave man two ears and one mouth, and he is supposed to use them in that proportion. Top salespeople practice the "70/30 rule." They talk and ask questions 30 percent or less of the time while they listen intently to their customers 70 percent or more of the time. They use their ears and mouth in the right ratio. Action Exercises Here are two things you can do immediately to put these ideas into action. First, resolve today that, from now on, you are going to dominate the listening in every sales conversation. Become comfortable with silence. Second, practice the 70/30 rule in every sales conversation. Listen 70% of the time and only talk and ask questions 30% of the time. |
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Weekly Tip - Educate you buyers about "Buyer's Remorse" so it never becomes an issue!
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 Buyer's Remorse, the REALTOR's Worse Nightmare!
Here's an idea on how one Realtor deals with buyer's remorse that I found on the Internet that I thought was very well written. I come right out and tell all of my Buyers...usually when we are broaching the subject of writing an offer...that there is something they should know. There is a term called "Buyer's Remorse" which can encompass a wide variety of fears and situations that arise during the course of a "normal" real estate transaction. I ask them if they are familiar with the term and they usually are not. If they are, they've "heard something about it...but aren't really sure what it means." I tell them that purchasing property, (a home, land, or investment venture), is a big step and that it is an understandable and serious matter when a person decides to purchase a property. (they usually nod or smile or both), then I explain that it is natural for intelligent people to be hit with the realization that they are embarking on a serious endeavor...no matter how smart of and idea or how good of a choice it may be. (they nod and smile again). Then, I very light heartedly, yet ARTICULATELY explain to them that they are LIKELY to experience some degree of Buyer's Remorse at SOME TIME during their transaction, (whether it is in the offering stage, the inspection stage, during the middle of a sleepless night, or at the closing). Then, I tell them that it is quite normal to experience this to a lesser or greater degree and that the way to be sure that it is a natural response, is that the feeling will leave as quickly as it came and that their original perspective and reasoning for purchasing the property in the first place will return. I can't tell you how many of my clients have told me throughout the years that it was a good thing I warned them about Buyer's Remorse. Some have even called me to tell me, "Lania, I'm having that remorse thingy you told me about...are you sure it's going to go away quickly?" And I have said, "I'm sure. I'll call you tomorrow." The next day I have called and they answer the phone, "Hello! You were right. I'm fine now!" Sometimes when we're on an inspection or a condition comes in from a lender, I can see it on my buyer's face or hear it in their voice and I say, "Uh, oh...you have it don't you? The Buyer's Remorse!" It almost always brings them to the remembrance of my explanation at offer time and smiles break out on their faces. Remembering and relieved that I told them this would happen. I think it's a great idea to let people know up front about Buyer's Remorse. It's comforting to know up front and remember that the person handling your transaction sees this as "normal". Since there is a good chance that your buyers are going to experience buyer's remorse and if they do, there is a good chance the you are going to lose your deal, educating them on this by "arming them against this" so they can deal with it more effectively has got to help. And, as she pointed out, it helps open the dialog when it does occur so hopefully you can help them see the benefits that out weigh the negatives. But, for you to be able to do this, I think you really need to
understand their financial situation and housing needs thoroughly
up-front and by enlisting us to help, we'll help you with this!
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| 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!
Rate Lock Advisory - Sunday Sep. 16th
This week is likely to be quite interesting. There are only four pieces of economic news scheduled for release, but two of them are highly important inflation readings. We also have another Federal Open Market Committee (FOMC) meeting, which may bring a much-sought rate cut. There is little doubt in my mind that we will see quite a bit of volatility in the markets and likely mortgage rates the next several days. There is no relevant news due to be posted tomorrow. The first important piece of data comes Tuesday morning with the release of August's Producer Price Index (PPI). This report will give us a very important measurement of inflationary pressures at the producer level of the economy. There are two readings that analysts follow in this release. They are the overall index and the core data reading. The core data is the more important of the two because it excludes more volatile food and energy prices. Analysts are currently calling for a 0.1% decline in the overall index, and a rise of 0.1% in the core data. Stronger than expected readings could fuel inflation concerns in the bond market and lead to an increase in mortgage rates Tuesday morning. The FOMC meeting will adjourn at 2:15 PM Tuesday. There is significant debate about a possible change to key short-term interest rates at this meeting. The general consensus is that the Fed will cut rates for the first time since June 2003. There is also debate about how much of a rate cut is coming. Many analysts are calling for a half-point decline at this meeting or a quarter point cut at the next two meetings. I am not so sure the Fed will lower the Fed Funds rate at this meeting. My estimates are only 30% chance of it happening at this meeting and only little possibility of a half point cut. But, Mr. Bernanke and friends have little interest in our thoughts. I suspect that if they leave rates unchanged, the financial markets will be disappointed and will tank. A quarter point move will also be somewhat of a disappointment and could lead to weakness in stocks. The wildcard is that regardless of how the markets react to the Fed move and its post-meeting statement, if we see significant weakness in stocks, the bond market may benefit as a safe-haven from the volatility. This could lead to lower mortgage rates. However, that is much too speculative to bet that way with mortgage rates. There just is no way to predict am emotional response in the markets. Accordingly, I strongly recommend proceeding carefully regarding mortgage rates the next few days. August's Consumer Price Index (CPI) will be released Wednesday morning at 8:30 am ET. The CPI is one of the most important reports we see each and every month. It is considered to be a key indicator of inflation at the consumer level of the economy. As with the PPI, there are two readings in the report- the overall index and the core data reading. Current forecasts are calling for no change in the overall reading and a 0.2% rise in the core data reading. A larger increase in the core data would likely lead to higher mortgage rates Wednesday, while a smaller increase would be good news. August's Housing Starts report will also be released early Wednesday morning. This report will probably not have much of an impact on the bond market or mortgage rates. It gives us a measurement of housing sector strength and mortgage credit demand, but is usually considered to be of low importance to the financial markets. Since it is being released the same day as the CPI, it is unlikely to cause movement in mortgage rates. Late Thursday morning, the Conference Board will release its Leading Economic Indicators (LEI). This index attempts to measure economic activity over the next three to six months. If it estimates an increase in activity, the bond market will probably fall and mortgage rates will rise slightly. If it shows weaker than expected readings, the bond market may rally and mortgage rates should fall. Current forecasts are calling for no change from July's reading. Overall, I expect to see some pressure in bonds tomorrow as investors prepare for Tuesday's events. I am not in total agreement with what many analysts and market participants are predicting will happen Tuesday, therefore, I am holding the lock recommendations for the time being. Please proceed cautiously is still floating an interest rate. This will likely be one of those key weeks in the mortgage market. 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... Float if my closing was taking place between 21 and 60 days... Float 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. |
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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.
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 collegues and call me today!
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 |
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I hope you have a great week this week in real estate. Call me if I can help you with that!!
Sam Thompson - "The Jumbo Guy" 843-230-7929
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