3Points with Mat Ishbia | January 2016

Hi there, I’m Mat Ishbia – President & CEO
of United Wholesale Mortgage and this is 3 Points. First point: Feds raised interest rates.
We all knew it was coming and it’s been talked about for months – is
it gonna be the end of the world? Come on – It’s not that big of a deal and we already have seen that. The market already priced in that rate change so you really didn’t see an
uptick of 30 year fixed mortgage rates, but what we did see is a lot of consumers
calling – a lot of people calling in saying “hey, I heard rates are going up. I gotta do something.” So it’s actually a great PR thing for the mortgage business. Now, if
it continues to go up, which we believe it will, it’s not going to be as positive a
thing. So what are we doing to prepare for that? What are you doing to prepare
for that? So, how do we do more purchases? What we doing about purchases?
Growing our business with real estate agents. Also ARMs – do we know how to sell them? Do we understand the benefits of how conventional ARMs work and how they’re different than subprime
ARMs as consumers are scared of that possibility. Also, refinances – there will
still be refinances because now if the rates are going up – remember, equity in homes
are going up. the economy is doing better – that’s the whole theory behind it. So
opportunity is there so make sure you realize that and take advantage
of in it 2016. Alright, second point: Fannie Mae HomeReady program is out. It came out December 12; it’s already rolling. We’re getting a lot of action on it. Hopefully you are too. So why so much action? It’s actually a great great payment for the borrowers – it’s cheaper
than FHA almost across the board, so you’re if over 680 FICO and over 80 LTV, you
gotta be going Fannie Mae HomeReady. The only time I’d go FHA now is if it’s over 45 DTI
or below a 680 FICO. So Fannie Mae HomeReady is a better program across the board. Put LPMI on there and save the borrower a lot of money. So an example here is $150,000 loan size.
Look at the interest rate: four and a half percent conventional interest
rate on a Fannie Mae HomeReady vs 3.625 on FHA. $150,000 loan amount still saves the
borrower $40 or more per month. So, it’s really cheap LPMI and the best
part: no adjustment for LLPA so MyCommunity, which it replaced, had a .75
adjustment. This HomeReady has a zero adjustment for over 680 FICO and over 80 LTV
so no LLPAs. It’s a huge huge difference. So, you should be knowing this program – should
working on it. How do you find out that they’re eligible? You know, because I know FHAs
qualifies for everybody. Fannie Mae HomeReady: click on this link –
it’s on our website – it’s also on Fannie Mae’s website. Type in the address and it will
actually tell you the income limit per area. Most people are going to
qualify for this program if their loan amount is below $200,000 is how I think
about it. Takes 30 seconds to click the link and find out if you get a better
payment for your borrower, win loans, help wow a realtor, wow a borrower –
it’s really a great program. Third point: flood insurance regulations are changing.
Nationwide change – every company’s gotta follow it as of January 1st 2016, you can
no longer pay your flood insurance separately than your mortgage payment.
You actually have to make it with your mortgage payment so you have to escrow for it even if you waive
insurance and taxes you still have to pay your flood insurance with your
mortgage payment. So it’s not a big deal – not too many people have flood insurance, but it is a
change and you should be aware of it for 2016. This is nationwide – all companies are going to
be following it in 2016. Thanks for joining me. This is 3 Points. I’m Mat Ishbia, President & CEO of United Wholesale Mortgage. Have a great day!

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