Monday June 13th
Video Recording Day
- Video Idea #1: How Student Loans Impact a Conventional Loan per Fannie Mae's Lender Requirements AND How this differs from Freddie Mac!
If a monthly student loan payment is provided on the credit report, the lender may use that amount for qualifying purposes. If the credit report does not reflect the correct monthly payment, the lender may use the monthly payment that is on the student loan documentation (the most recent student loan statement) to qualify the borrower.
If the credit report does not provide a monthly payment for the student loan, or if the credit report shows $0 as the monthly payment, the lender must determine the qualifying monthly payment using one of the options:
If the borrower is on an income-driven payment plan, the lender may obtain student loan documentation to verify the actual monthly payment is $0. The lender may then qualify the borrower with a $0 payment.
For deferred loans or loans in forbearance, the lender may calculate...
a payment equal to 1% of the outstanding student loan balance (even if this amount is lower than the actual fully amortizing payment), or
a fully amortizing payment using the documented loan repayment terms.
- Video Idea #2: How does May's Consumer Price Index reading impact your budget?
The May CPI showed that overall inflation rose 1%, which was much higher than the 0.7% expected
Year over Year, inflation rose to a new cycle high from 8.3% to 80.6%, passing March's 8.5% reading.
So how does this impact you and your budget?
- Energy prices rose 3.9% from a month ago, bringing the annual gain to 35%.
- Fuel increased 16.9% last month and are now up 107% from last year. **Prices at the pump on average across the US are over $5… which is the highest ever!
- This is causing airline fares to rise significantly, making travel much more expensive. **Fares rose 13% last month and are up 38% your over year. Hotel rates are also up almost 20% year over year as well.
- Used car prices jumped 1.8% last month and are up over 16% year over year.
- Food costs climbed another 1.2% in May, bringing the year over year gain to 10.1%.
- Rents rose 0.6% last month and are now up 5.2% your over year. **Owner's equivalent rent, which tries to capture the rise in home prices but does a poor job, also rose 0.6% and is up 5.1% year over year.
- What does this mean for interest rates?
- This will likely pressure the Fed to continue to hike 50bp in June, July, and probably September as well.
- This is causing the yield curve to flatten, with the spread between the 10-year and 2-year now at 14pb.
- We saw a brief inversion in the beginning of April, but remember… this is important because inversions have a high correlation to recessions. And as the Fed continues to hike, the inversions can become more pronounced.
- My suggestion would be to lock in before what could be another increase in interest rates.
Tuesday June 7th
TCA TUESDAY – GO LIVE!
*Sell First vs. Non-Contingent, vs. Bridge Loan **FLAG DAY**
**If you have a portfolio loan option to go Non-Contingent vs. Contingent as well as vs. a Bridge Loan: Click Here
Wednesday June 8th
HOST YOUR SHOW DAY
Interview a Local College Advisor about their Opportunities as well as How You Could Help with Educational Student Loan Literacy
Thursday June 9th
Friday June 10th
Post an Educational REEL:
What's really causing chaos in the market:
*Don't forget to send your weekly VALUE ADD email to your agent partners today!