JohnsBlog (articles, news, thoughts, advice)

Have you ever heard the phrase "top of mind awareness" (TOMA)??  This has been around forever, however it's rarely applied as it should be to our marketing efforts.

TOMA is a proven strategy, and using it correctly results in increased business, more free time, less marketing dollars, and less expended energy, all by using a simple recipe that incorporates not only TIME but also CLIENT management.

I recently did a 5 minute video for some of my referral partners, and you can view the video HERE!!!

Also, there's an extra bonus.  For those who want the exact recipe thought up by the best networker I know, I'm sending out the pdf that inspired me to set up my own TOMA plan....and MAN!  has this worked to perfection with increased business and about an hour extra of time each day simply by using this system!  Get the bonus pdf to see the TOMA recipe! 

Hope this info is helpful in your business building and that TOMA opens a new door in the marketing world to you as it has for me!

While a previous post stated USDA is running low on funds, and this IS true, I have found funding sources for USDA loans that are still taking applications and locking loans.

I learn something new everyday, and today was no exception.  I have a banker backed by one of the larger lenders out there, and in the past when USDA has run out of funds, large lenders (such as Countrywide in the past) simply portfolio'd the loans until USDA's next fiscal year or renewal of funds, then sold them off.

Not sure if that's the situation we're seeing here, but one can certainly hope so.  Regardless, the important thing is that we have a source for today and the foreseeable future (soooo, at least until Monday?). 

A little bit of research and reaching out to different funding sources reminds me that the difference between the average agent or mortgage person and the one who excels is just a little bit of intuition, and the desire to not accept "no" without exhausting every resource available.  More often than not, people can be helped, sometimes you've just got to dig a little bit deeper.

Housing starts are struggling again this month, down for the 3rd month in a row, yet manufacturing and the overall economy is painting a nicer picture than it was a year ago. 

Unemployment is still high, housing market is stagnant at best, and rates are expected to climb and tax credits are set to expire?  This should mean an interesting chain of events over the next couple of months.  The good news is it's an excellent time to buy or refinance with rates low, IF YOU CAN. 

The stock market rising is weird considering unemployment is so high and the housing market is so low, though...guess that stimulus money is helping wall street...but wasn't it supposed to help main street, or was that all lip service?

USDA is once again out of approved funds and the ability to provide financing to those who qualify for the program.  This happens from time to time, and causes extreme inconveniences for buyers everywhere.

All loans going USDA must be submitted ASAP to receive the available funds as lenders will be staggering to reserve monies for their loans.

This is an interesting recurring phenomenon.  USDA is a government sponsored program, and is designed to help individual buyers, aka homeowners, aka the middle class people politicians campaign upon wanting to help.  Yet a few times a year, this program runs out of funds, sometimes destroying a persons dreams, and has in the past taken up to a month or more to get replenished.  Yet we can spend billions on bank takeovers, acquisitions, and salvaging in the blink of an eye...priorities???

As posted on www.activerain.com/lemeuss

We've been on a rate roller coaster for the past several months, and it is severely driving the emotions of a lot of people.  Everyone obviously wants the "best" rate, however, in the pursuit of locking in when rates are low, a lot of folks miss out on the more important detail, that being the big picture.

Your likely not refinancing just because you want to see a 4 as the first number in your interest rate.  It's primarily because you're either consolidating debt, freeing up some monthly cashflow, reducing the amount of time it will take to pay down your mortgage, or some other "big picture" reason.  When finances come into play, it's important to focus on this rather than let emotion take over because someone you know got a rate .125% lower. 

Find a good professional that will work with you and your financial network (advisor, attorney, etc...and if you don't have a good advisor get one!) to help you accomplish your long term goals.  Nobody that waits for the lowest possible interest rate ever gets it, because while they're waiting for it to drop, it goes back up.  A couple years ago 6% was a stellar interest rate.  When rates went to 5.875%, there was a mini refi-boom.  Now at 4.75%, we're a full percent lower, however some people still want a lower rate!!  It's all relative folks, and the need to focus on overall benefit and cash analysis to see if a refinance makes sense takes tremendous precedence over who can say they have the lowest rate at the family BBQ. 

While we're at 4.75%, it was just a few weeks ago when we were at 5.25%.  A few weeks from now, we could be up in the mid 5's, as the Fed is scheduled to end their purchases of mortgage backed securities this month.  Everyone knows when there is more supply, there is less demand.  In the case of rates, less demand for securities always always always leads to higher interest rates. 

It's important to get in now during this historic time for interest, and actually let this recession work FOR you in planning for your financial future.  It's a great time for those in position to take advantage of it, so if you are in a good equity position, be sure to get in while the getting in is good!

A rare rant.  THE NEW GFE FOR 2010 IS A NIGHTMARE.  For one, our origination systems are not set up to properly complete the fields on the GFE.  For example, I put yield spread premium in the "yield spread premium" box, and it doesn't reflect on the new GFE, making charges correct.  EVERY lender out there will deny a loan due to to this.  It's a huge annoyance to sit there and manipulate for 20 minutes a form which was PERFECTLY FINE the way it was before. 

When an estimate has to be exact, and cannot change, it is no longer an estimate.  I understand consumer protection, but there's no need for it if more loan originators acted in an ethical manner and put their best foot forward.  Having to do this, and WASTING more of my valuable time on manipulating numbers to properly populate makes me despise more and more every unethical originator that these practices were implemented because of.

That's what rates are doing.  We're coming back from the 4's and into the low 5's as mortgage bonds lose steam ahead of the Fed's purchase of securities coming to an end.  Slated to end in a month, there's an expectation that economics 101 will take hold, and there will be less demand for mortgage bonds, thus more supply, thus lower prices, thus higher rates.  A bad chain of events for a continually struggling housing market and fragile economy. 

There's a good video showing the bond market movement and how securities effect everything.  Hopefully the link works; if so, you can find it here, courtesy of mortgage success source.

Should be an interesting few months as rates are set to increase and the tax credit for purchases is scheduled to end for new contracts as of 4/30. 

Exclusively launched by John Meussner, the Agent Advantage system will take any real estate agents business to a new level.  This program is perfect for both seasoned professionals and agents new to the business.

Is any other mortgage professional bringing money to YOU as an agent?  Not likely.  This 4 tiered system helps everyone from the largest broker to the individual in sales skills, increased listings, increased buyers.

This could be the ONLY marketing you need to do as a real estate agent.  Call or e-mail today for details. 

HUD did something right!  "Flipped" properties, i.e. foreclosed properties bought by investors on the cheap and resold at a profit got a nice boost.  HUD had a requirement where a property purchased and repaired could NOT be sold to an FHA buyer for 90 days after the initial purchase.  Meaning if an investor flipped the property in few weeks, they'd still have to wait a couple months to sell it to an FHA buyer (which many buyers in this demographic are).  Now there is no seasoning, so if they can flip the house in 3 days, they can sell it in 4.

The old rule never made much sense to me (by my logic, what really changes about the risk of a purchase or the property itself between the time period 89 days after initial purchase and 91 days after???), so I'm glad to see this change take place.

Im sure a lot of investors are equally as happy : )

The 2nd edition of my newsletter is slated to be sent later this week. 

Included in this edition will be testimonials from recent clients (many can also be found on www.johnsrate.com), some information about the Stanton/Newark SPCA, which is in dire need of volunteer help, Changes to FHA loan guidelines proposed in the most recent HUD mortgagee letter, the announcement regarding a great marketing campaign which will be a major focus throughout 2010, and some remarks and information regarding Black History Month, which is February.

If you'd like to be included in this newsletter distribution, e-mail a notification and the e-mail you'd like to receive the mailing at to jmeussner@louviersmortgage.com.

Please note, emailing me through johnsrate.com may delay receipt of the newsletter, please use the jmeussner@louviersmortgage.com e-mail to promptly receive the Buzz during it's normal e-mail cycle.

Best,

-JJM