THE LETTER X

ISSUE #20

Presented by: EPM

Happy Labor Day Weekend to everyone who isn’t in Real Estate or Mortgage! Lol.

Seriously though, I hope you are ALL taking some well deserved time off to recharge as we go into the Final Four of 2020.

Our LEAD story is something I have been telling you all to prepare for since FB dropped the hammer down on targeting ads for our industry.

Starting Oct. 19, Google will restrict ads targeting customers on the basis of “gender, age, parental status, marital status, or ZIP code,” the tech giant told advertisers, as reported by Reverse Mortgage Daily. The new policy will have an impact on housing, employment and credit companies.

This is why I preach about “owning your traffic” and not be dependent on Google and Facebook ads because you don’t control what they do. When you own your traffic, The Letter X for example, you don’t need anyone else to help get in front of your audience.

It is all about the IFC, Interest Focused Content. Consumers WILL pay attention of your content is focused on what they Like, Love, and where they Live. Do that and you will never have to pay anyone to get their attention.

Now let’s get into this issue of TLX! Enjoy!

Say Yes Every Day 

Laura Brandao - President of AFR Wholesale

This week say YES to embracing our Seasons! Throughout our lives we have to go through different seasons to get to the “happy” season so whether you are currently in a dry season, a waiting season or a grinding season remember this is leading you to your HAPPY season. 

Sharing is Caring! Remember to share your personal referral link (bottom of email) for a chance to win a $50 Amazon Gift Card! 

Have you thought about creating a legacy for yourself? I was honored to be on the 200th episode of Mortgage Coach's Friday Mastermind with Dave Savage and Todd Bookspan. This was a great conversation and you don't have to look farther than Dave and Todd to see what can be accomplished.

MBS X

Presented By: MBS Highway

Importance of Inflation

Inflation is always something important to follow when it comes to mortgage rates because inflation is the archenemy of bonds as it erodes a bond’s fixed return. If you’re getting a fixed payment of a bond’s return over 30 years, but if inflation is on the rise, you’ll be able to buy less and less with that fixed rate of return. When this happens, investors have to be compensated in the going market with a higher interest rate. When inflation rises, interest rates rise.

The Fed’s New Plan

While inflation has been very low over the past few years, we’re starting to see some signs of inflation picking up. When we look at the Fed’s favorite measure of inflation, the Core Personal Consumption Expenditures (PCE), it recently rose from 1.0% to 1.3% on a year over year basis and has significantly risen month over month over the last few months. The Fed has said that their target for a very long time has been 2%, but they recently changed their stance. They introduced a methodology of “average inflation”, where they said that they still want to keep a 2% inflation target long-term, but they are willing to allow inflation run hotter than 2% for periods of time after running below it. They were very ambiguous as far as a period of time to measure from so it’s difficult to interpolate what effect this could have. With inflation only reaching 1.3% over the last year, hypothetically it would mean they would be OK with inflation going to 2.7% to equal a 2% average over the past two years. If we were to see inflation rise, it could be troublesome for the consumer and interest rates if the Fed has a higher tolerance for inflation.

Inflation Could be Coming Sooner than you think

The economy has been significantly affected by Covid-19. The unemployment rate has risen sharply and economic activity has slowed, even with the Government’s immense stimulus spending. When the economy does pick back up, there will likely be a period of time where consumer demand increases much faster than supply can keep up. Remember, many supply chains have been adversely affected and reduced due to the lack of demand. If this were to occur, there would be much stronger demand for goods and services and a lack of supply, causing companies to raise prices and inflation to rise. This is something we have to keep an eye on – If inflation were to rise and the Fed has a higher tolerance for inflation, interest rates on mortgages will likely rise. 

Right now, interest rates are very attractive. Make sure to explain to your customers that rates may not always stay this low and to act now, not wait for rates to drop further. At MBS Highway, we monitor this and much more daily for you. Join now, what are you waiting for?

The News X Recap!

Experts say mid-size and rising cities could get a boost from residents seeking a lower cost of living, more space to work from home and access to a typical city’s cultural offerings once widespread social-distancing restrictions lift.

LendEDU's survey of 1,000 homeowners with a mortgage found that 55% of Homeowners Regret Taking Out a Mortgage During the Pandemic.

Why have banks stepped back from mortgage servicing? Michael Fratantoni, Chief Economist of the Mortgage Bankers Association takes us through the who, the why, and the what.

Pacific Investment Management Co., one of the world’s biggest bond investors, is warning that a regulator’s push to end federal control of Fannie Mae and Freddie Mac could threaten the U.S. housing finance system by forcing the sale of mortgage bonds and boosting loan interest rates.

Almost everywhere you look, low mortgage rates are in the news. Experts are claiming they'll remain low or move lower for years to come. They might be right! But that doesn't necessarily mean you should wait to refinance or to lock your rate if you're already in the loan process.

We all know this business can be stressful and if you are having a tough day just be thankful that you aren’t this guy…

Good things come to those who Mastermind! Have you joined the Mortgage X Mastermind yet? I would like to invite you to join our community that is 100% focused on helping MODERN industry professionals crush it. 

The Vieaux

Brian Vieaux - President of FinLocker

Succeeding in a commoditized market……….

For the most part the mortgage is a very commoditized product for consumers to access. Every lender has an “online” app, is available via the web 24/7 and from a pricing perspective is more or less “in the ballpark”. When selling a commodity, where price is so important, the differentiator for an originator is what they bring in value beyond the product itself. 

Young first-time home buyers make up a significant % of the market, as I shared last week. This trend is going to continue. These consumers are tech enabled and prefer and expect to “self-serve” as much as they can. They value the ability to connect with a person when they need a specific question answered, or advice, etc. This is a segment where the local originator can win if they are bringing value beyond the mortgage product/process.  

If you can engage with these consumers very early in their journey and become their trusted advisor your chances of earning their business will be greatly enhanced. There are several technology tools in the market competing with you for the attention of the consumer. Partner with technology vendors and solutions that will enable you to provide “early journey” tools that help with education, preparation, while keeping you connected at the same time. The local mortgage and real estate professional are still best positioned to win.  

Enjoy the Labor Day Weekend!

Mamapreneur: Real Talk with a Side of Mom Jeans

Jess Vogelpohl Southwest Coaching

Hustle culture, woof 

What are the qualities/beliefs that make-up a successful entrepreneur?

Some of us think that success equals hustle and working 647382992 hours per week.

....that running ragged is a badge of honor. 🥵

And, when we try to take a day off or try to be present with our families, we feel this pull and guilt that we are not doing enough. Spoiler alert: it will never be enough. ❌ 

Want to know why? Because we feel that our worth is attached to our achievement. “If I hit this milestone then X.” “If I make this amount of money then Y.”  So, we flit from achievement to achievement our entire lives because we subscribe to the ol’ “destination happiness mindset” - “I will be happy when ABC or XYZ happens.” And, in the meantime, we lose sight of the important moments and forget to celebrate our accomplishments. 

So, take stock in your feelings on success. Do you ACTUALLY need to work 732414792 hours a week because it makes you feel worthy of success? OR do you kinda suck at time management? Maybe a combination of both. 

Podcasts of the Week!

The Power of AQ w/James Robert Lay

Mortgage X Podcast

Interrupting the Traditional Mortgage Model w/Mike Kortas

Mortgage Interrupt Podcast

Podcasts of the REAL Disrupt Network

Positively Charged

Confident Closers

Blondes Have More Funds

Next Level Loan Officers

Laugh Lend and Eat

Treasure Coast Podcast

Charlotte Real Estate Buzz

Culture Matters Podcast

Virtual Coffee with Estie Briggs

Mortgage X Professional of the Week

Corrina Carter - CMS Mortgage Solitions

The Edumarketer

Ginger Bell - CEO & Founder Edumarketing

Getting Started with a Facebook Livestream

Going live on Facebook is similar to hosting a party, except it is virtual.

You wouldn’t throw a party without cleaning up, organizing tables and chairs, or buying snacks and drinks. Setting up a Facebook Livestream is like being a good party host—it’s all about the details.

But, before you get to the details, you have to choose the party’s theme. Or, in this case, the topic you plan to livestream about.

Common Facebook Live topics include:

·      Q&A sessions

·      Interview series

·      Industry news

·      Behind-the-scenes looks

·      Topics requested by your audience

·      Whatever you want to talk about

Once you’ve decided on a topic, you can begin to plan out all the details like the livestream date and time and what equipment you’ll need.

For the next few weeks, I’m going to outline what you need to get started with Facebook Live. 

Let’s begin this week with step one, which is how to get started!

Get Started. If using a mobile device, open the Facebook App and select the camera icon on the left side of your search bar. From here, switch to “Live” located at the bottom of your camera screen. If using a desktop, head to your Business Page or personal page, click to write a post, and select the “Start a Live Video” option. You’ll be asked to give Facebook access to your camera and microphone on both devices.

Next week I’ll talk about writing your description. 

Always pass on what you have learned!

Leading Ladies of Mortgage

Mortgage X sponsor and co-host this awesome virtual mastermind with some of the best mortgage professionals in the industry. This event is 100% FREE and you will not want to miss hearing these mortgage experts share their wisdom. 

Join us and learn from these Leading Ladies of Mortgage at this FREE event on September 9th 9am - 3pm Central. Register Today!

ESPORTS X

Blaine Bell - Co-Owner & Founder Sanguine Esports

The History of Esports - Part 2 (Three Part Series)

The 90’s

Tournaments continued to be moderately popular and sprang up in different locations and at varying times. As per an article by FoxSports:

“…first-person shooters such as Goldeneye would take advantage of more powerful computers and pave the way for games like Halo and the new Overwatch. Yet for all the competition brewing, there was no actual way to link players with each other on a day-to-day basis.”

The internet changed everything. People were able keep scores, communicate with players online and be visible by people who didn’t even live in their city or state.

According to dotesports.com, “the 1997’s Red Annihilation tournament for the First-Person Shooter game” “Quake” is considered to be the first real instance of esports”. It attracted over 2,000 participants and the prize was the lead developer, John Carmack’s Ferrari. Pretty cool!

The 2000’s

The 2000’s saw the rise of professional gamers. There was now a marked difference between amateurs and the ‘pros’. It was around this time that video-game consoles were released with internet connections that allowed players to challenge their friends across the country. Video game titles got a rewarding system in place, offering in-game perks to winners. Ranking “ladders” were introduced to encourage players to compete for alpha status.

In 2006 and 2007, The USA Network partnered with MLG to broadcast Halo 2, an FPS game on television. It did not make for great viewing and their attempt to attract audiences failed. That is when the industry realized that new sports needed new broadcast media. Enter Twitch…..

Tune in next week to get Part 3 as we get into Twitch!

Mortgage Meme of the Week

Have a meme? Email them to frazier@mortgagexpodcast.com

Credit to Michael Fischer 

Remember to share your personal referral link below for a chance to win a $50 Amazon Gift Card! I hope you enjoyed TLX #20! Have a great weekend.