Know What Is Going On!
As mortgage professionals we are obligated to have a wide range of knowledge about a wide variety of topics. Some information like product and program guidelines and specifications are expected, while other more detailed information maybe on a case by case basis depending on your specific market. It is important that we all understand the national, regional, state, and local communities in which we serve and how ALL kinds of information could, and may very well, impact our customers and our business.
National changes like program changes in lending limits, MI rates, credit scoring changes, actions by HUD, FEMA, USDA, and the Federal Reserve are just some of the national forces we need to stay on top of. Some of these items may have a huge impact on your market and others may not. The example of the FNMA limits changing comes to mind. In a market that does most of its business at the lower price points, a hike in the FNMA lending limit means virtually nothing. In a market where the average loan amount is within a few thousand dollars of that limit. A change could be very impactful! The same holds true for local issues. Bond programs and DPA programs are often very local. Changes in those programs could be very important to some while ignored by many!
As true mortgage professionals you need a big picture of what will impact your market and what any changes may mean to your clients and referral partners. I have had clients who saw big opportunities in these changes and were able generate a great deal of interest. Obviously when the FED moves interest rates it is big news and creates opportunities, but many seasoned people are not even aware of the FED meetings, what the information was, how any information may push rates in one direction or the other, and if the public is even getting the right information? Seriously, how many of us have clients in the past that heard that the FED cut rates by some amount and think their mortgage rate automatically went down by the same amount!
The impact of news is not always as it seems! People sometimes get the interpretation of the information wrong. Your job as a professional is to be aware when information is going to be published and get a clear view of what that information will mean to the customers and referral partners you serve!
Keep in mind, not all information impacts all people and markets equally! FEMA changing the flood map may mean nothing to you, but it might be a huge tool for those whose areas are impacted! You are expected to know the information, when the information is available, and how it may impact your specific market!
So how did the FED meeting yesterday impact your people?
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