Economic Update

By Ken Taylor*

(January, 2012) On January 12, 2011, Freddie Mac published mortgage interest rates. 30-yr fixed rates were at 3.89 % with .7 points. 15-yr fixed rates were at 3.16 % with .8 points. Rates continue to hold at historically low levels and make housing more affordable.

WASHINGTON, D.C. (January 11, 2012) — Mortgage applications increased 4.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 6, 2012. The results include an adjustment to account for the New Year’s Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 4.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 34.4 percent compared with the previous week. The Refinance Index increased 3.3 percent from the previous week. The seasonally adjusted Purchase Index increased 8.1 percent from one week earlier. The unadjusted Purchase Index increased 41.9 percent compared with the previous week and was 17.9 percent lower than the same week one year ago.

January 9, 2012 - The number of housing markets showing measurable improvement nearly doubled in January with the addition of 40 new metros to the National Association of Home Builders/First American Improving Markets Index (IMI), released today. The IMI now boasts 76 improving markets, up from 41 in December, with 31 states and the District of Columbia represented by at least one entry.

The long-struggling economy is picking up a head of steam, with government data showing the unemployment rate dropping to a nearly three-year low in December as businesses in a wide range of industries created a solid batch of new jobs.

The strengthening labor market could bolster consumer income and confidence, giving a lift to spending and economic growth. That, in turn, could lead more businesses to step up hiring. The 8.5 percent unemployment rate for December represented an additional 200,000 net job gains and the lowest unemployment numbers in three years.

Source: Freddie Mac, Mortgage Bankers Association of America, National Association of Home Builders, U.S. Department of Commerce.

What Works?

By Ken Taylor*

We are moving into a new year and if you are like most people you have high expectations for success. You most likely have set your goals for the year and have made a promise to yourself to take your business to the next level. Before you go too far into the year, let’s make sure you are not spinning your wheels by focusing on activities that do not work. I train thousands of loan officers and have coached quite a few in the last 10 years. The last five years have been very different from a loan officer perspective. Easy qualifying loans have almost disappeared, replaced by appraisal problems, overlay guidelines, and over optimistic borrowers and agents.

Where is the best place to put your energy and time? I am going to give you my best list and over the next few months I will give you details on how to best leverage these mortgage opportunities. The key word will be “patience” in developing relationships and trust. Ready?

1. Realtors —national statistics tell us that Realtors still control a large portion of where their clients go for a mortgage. First-time homebuyers make up a larger portion of purchasers than at any time in history. It makes sense to put your focus on professional agents. I recommend an active partnership with no less than 10 agents who are actively growing their business.
2. Past clients — Although many are under water on their current mortgage, many are not under water and want to own a home in a market they perceive as “at the bottom.” Educate and keep in touch with your past clients on a regular basis through newsletter marketing.
3. Builders — Many builders have mortgage partners and they will offer to pay closing costs on behalf of their clients. Unfortunately many loan officers do not call on builders based on the misconception that all the business is locked up. Nothing could be further from the truth. In fact there are many builders divesting their mortgage operations and are opening their business up to more lenders
4. Financial Planners and CPA’s — This is some of the highest quality business you will ever get and in most cases it is easy to get the financial information since you will be working with their financial expert.
5. Networking groups — A networking group is a like minded group of business people organized to exchange information on a weekly basis. One of our coaching clients attends three networking groups a week and averages four to five qualified exchanges.

These are just a few of the many targets to help grow your business. In next month’s article I will give you sure fire methods to help you to work with the right Realtors and gain their complete confidence. I will see you at the top!

The Legend

By Ken Taylor*

He was a fugitive of World War I making his way to the United States with the help of a young soldier who assisted him in finding a home in California. As fate would have it he was discovered by Warner Brothers Studios and became an overnight star on the silent screen. Very quickly he commanded top billing as one of the most popular stars in Hollywood.

Legend has it that every time Warner Brothers Studio was about to go under from a lack of financing they would simply make a movie with their number one box office attraction and they were back on their feet. It was rumored that he was a sure bet to win the first Oscar for Best Actor in 1929, but was edged out by Emil Jennings.

Next came hundreds of endorsements and the distribution of his motion pictures worldwide. No one could get enough of this hero who was idolized by young people and adults alike. Alas when talking pictures began in late 1929 the world famous actor’s fame began to fade. In 1932 he died in the arms of Hollywood starlet Jean Harlow. He was so popular that radios all over the United States observed a moment of silence in honor of his passing. Every major newsletter had his death as the headline story.

Who was this man that commanded top dollar at the box office and was the savior of Warner Brothers Studio? Well, he wasn't a man at all, he was a dog. His name… Rin-Tin-Tin. His descendants would go on to star in movies, radio and early television including "The Adventures of Rin Tin Tin" that aired from 1954 to 1959 on black and white televisions all over the land.

American Soldier Lee Duncan found the small puppy in an abandoned kennel in France, nursed him back to health and took him to California. Duncan recognized the dog’s intelligence and personality and was convinced that he could make it in the movies. The big break came when Rin Tin Tin had to step in to play the part of a wolf when the original canine took sick. Between 1920 and 1931 Rin Tin Tin starred in 19 films and was the most popular actor of his time.

Duncan Lee eventually had Rin Tin Tin's remains sent back to France to be buried in a famous pet cemetery but his descendents live on to this day being bred for show and as companions to disabled children. When you think of making a positive contribution to the world, when you think about how one person can make a difference, you have your role model. Thank you Rin Tin Tin.

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