Transcription:
Rob Chrane (
Good afternoon everybody. Welcome to our session, our conversation about the state of home buyer assistance programs and increased accessibility for underserved markets. We're gonna show you and make the business case why working with these programs is a must have competency for lenders. Today we're gonna share some mind blowing, insights and we're gonna, tell you about some best practices. My name is Rob Chrane. I'm CEO of Down Payment Resource Down Payment Resource Connects or helps its business partners, connect home buyers and borrowers with the down payment help they need. With me is Diane Arvizo, who's the home ownership director at the Nevada Rule Housing Authority and Mosi Gatling like the gun. She says, And if you were in the room earlier that she's doing double duty today, Mosi is a sales manager right here in Las Vegas for Loan Depot. She manages a very high performing, high producing origination team. So to set the stage first, let's say that there's absolutely no. Okay, So what I was gonna say is there is no shortage of available solutions. In fact, there are over 2200 home ownership assistance programs available today. I know that because that's part of what our company does. We track these, we keep 'em up to date, and, at this moment, about 84% of those are actively funded. And, that's a pretty consistent number. Whenever we take a snapshot, it's always at least 84, 80 5% of the programs are funded at any given time. 74% of those programs are some type of down payment assistance or closing cost help, and the average benefit is about $17,000 per transaction. Then there are other programs about 12 categories of programs, including affordable first mortgage products and mortgage credit certificates, which we're gonna be talking about. We're gonna show you some neat tricks with those in a minute. So, what if you could boost your pull through rate by 33%? Our research has found that one in three declined loans could have been closed by applying available down payment assistance. That available down payment assistance also reduces the loan evaluate ratio by 6%. So what does that do to your debt to income ratio? How many more people can you qualify. Down payment assistance is no longer the secret that it has been up till now, the genie out of the bottle, or at least climbing out of the bottle. You know that home buyers shopping online on zillow.com can find a down payment to go with the home they're looking at. And in a few weeks, that's gonna be true also on redfin.com. And in fact, today, over 200,000 consumer searches a day hit our database. That's over 6 million a month. If you go to our down Payment Insiders Facebook page, you'll see that almost every agent posting is asking for referrals for loan officers in their market that can help them like the one in this screen. Sorry about that. good afternoon. Looking for DPA lenders in the state of North Carolina. Thank you. Good morning. I'm looking for lenders in Texas, primarily Houston, and you scroll through that, you see that on and on again. So, consumers are interested, realtors are interested. Are you lenders ready to help them? Well, ready or not, let's turn it over to our experts and let them tell us how this all works. Diane, you provide the programs, you bring the money. Nevada Rule Housing is a nimble, innovative, down payment assistance for affordable housing program provider, and they never rest on their laurels. So what are you doing for us today? What are you doing to help lenders and home buyers be successful and especially, in especially challenging market?
Diane Arvizo (
Thank you, Rob. I love the way you teed that up . So as Rob said, I'm Diane with Nevada Rural Housing Authority, and that doesn't mean anything to you, but we are a number two local housing authority in the nation, only behind California. And what that tells you is that we are nimble and we do pivot in a changing market. But why, again, does that matter to all of you who might not even live here is that your local and state housing authorities are often operating in the same manner. And one of the reasons that you really need to talk to your local and state housing authorities right now where you live, is to make sure you are on top of what is being offered in your area. And if you're behind the curve on that, it is going to be detrimental to your business for a long period of time. Long after, the market shifts again and things start to pick up. So I'd like to kind of sit with you like you're low and moderate income borrowers that you might focus on today will become your greatest resource for referrals tomorrow. It is important that you remember when you change the life of a first time home buyer, they are never going to forget that. And if you were in the panel before, you'll understand like how that actually makes an impact even beyond just today. You want that borrower to be able to explain why they had such a good experience with their loan officer. Right now there's definitely a stigma. I get a little bit like rashy I think when I hear about the rates because depending on who you talk to, you might hear that rates are get used to it or rates are crazy or whatever. But I like to think that if the rate is an obstacle for a borrower who can afford it, they're not being educated properly. So we saw, I forgot if it was Wall Street Journal or one of those big name, organizations, had an article come out with the headline date, the rate marry the mortgage. I cannot say that enough when you're talking to home buyers. So, I wanna share with you on this slide, this is just an example of what we're offering as a local housing authority. And we serve, parts of Las Vegas as well. We actually have, our jurisdiction is 150,000 population or less. So, that's a game changer. So for our program, we're offering up to 4% of the loan amount in down payment assistance. Our program is not a bond program. And why that matters is we're gonna talk in a minute, is because a non bond down payment assistance program and you need to know the difference can be paired with mortgage credit certificates that will turn your home buyers on their head with excitement when they actually realize not only that they can afford a home, but how much that payment's gonna be and why did they wait so long. So it really is awesome and certainly educating them that the rate is not the only thing. in terms of determining affordability. So for our program, our income limit is 150,000. Now, if you're from Nevada, that is a super generous income limit. Plus we allow the borrowers qualifying income, whoever's gonna be on the loan to determine if they meet that eligibility. So the only caveat to that is if it's a U S D A loan, for example, you have to follow U S D A guidelines. Our minimum FICO score is 640. And so why I think that is also very cool is that you get to tell the borrower that that has a 640 fico, that they're gonna get the same good low rate as a borrower with maybe an 800 fico. And that's a game changer as well, that we don't add loan level price adjustments. There's no additional adding to that rate. What we publish every day is what any of your qualifying borrowers we'll get. We don't have purchase price limits and we don't have a first time home buyer requirement. So it's really important to understand your local programs so that you can make them work for you. Let's go ahead and shoot to the next slide. I wanna talk about the underutilized mortgage credit certificate program. Oh my gosh, if you don't have the MCC in your portfolio of products, then you are going to be losing loans to the loan officers who are like Mosae over here who knows how to rock the mcc. You will get a home buyer coming back to you for referral business for years to come if you give them the MCC because every year during tax season, you get to reach out to them and remind them of the value of the MCC that you help them get, how much money they're saving. And hey, don't forget to take that awesome tax credit that's going to get you like $4,000 back. So that's very, very important. So for those who don't know what the MCC is, So it's a 20% for us, it's a 20% tax credit based on the mortgage that they're paying every year for the life of the loan. Now the MCC is funded by bonds. So it is, first time home buyer program and we'll be subject to the income and purchase price limits in the market where the MCC is being provided. So, make sure that you know what MCC program is available in your area because it's gonna help you qualify more borrowers. Why will you qualify more borrowers? Because the IRS allows you to calculate the estimated tax savings for the first year based on the loan amount and interest rate, divide that by 12 months and you get additional qualifying income that helps that borrower increased purchasing power, lower debt to income ratios and actually helps you qualify them. And again, they get that tax credit for the life of the loan if they refinance, which hopefully they'll refinance with you, they can simply have that MCC reissued by the housing authority. So, it's important to know what that can do. I will tell you, I have a little scenario I think on the next slide. Again, knowing whether you have down payment assistance programs that are funded by tax exempt bonds or non bond funding is important because you can pair the MCC with a down payment assistance program that is not funded by tax exempt bonds. If it's a bond program, you can only choose one or the other. So it would be up to you to determine which one will have the greatest bang for the buck. There's actually an article, I wish I could get my hands on it, I don't have it in front of me, but that actually breaks down a sample mortgage. And on a bond program compared to loan with a higher rate and an mcc, the MCC actually provides a greater benefit to home buyers, in more cases than not. So in this example right here, we have a home that is listed for sale right here in Las Vegas. With a $345,000 loan amount you can see that it's going to generate. And what was the interest rate on that? 6% interest generates an additional $343 a month in additional qualifying income. So tell me, you won't make a best friend with that home buyer when you're done explaining to them what you just did for them. So we make it very easy with our program. You can add the MCC to a loan that you're doing with DPA or without, you can just do it as a standalone. So, it's important that you know that. Absolutely. So I'm gonna segue over to Mosae here, who's gonna actually explain how the MCC, totally changes the whole dynamics of affordable lending it.
Rob Chrane (
Yeah, and I want to ask Mosae a question, but not put you on the spot, put everybody else on the spot, but, so Diane, she's the provider. She provides the programs you deliver, the programs, you deliver them to home buyers, the borrowers, and to the benefit of the sellers. And of course the agents that they work with, it seems counterintuitive that a high performing, high volume origination team could do that, accomplish that while doing these programs are, at least most people say it out, they're too complicated. So you know why?
Mosi Gatling (
I think that would be a misconception.
Rob Chrane (
Isn't there an easier way than to have to do DPAs and MCCs and all that?
Mosi Gatling (
When I'm looking at you talk about this high performing thing, I don't think that because we originate and close more than a hundred million a year that it, I can't stop and make sure to do what's in the best interest of the home buyer. I feel it helped me get over a hundred million. I feel that it has my business to date compared to last year, literally as of today, up 18%, which doing things like this and really engaging my housing authority to talk about interesting ways to really help more people qualify to kind of get over some of, not just qualifying, but there's income hurdles I think in any market. Here in Las Vegas specifically, we have tip earners income that's like, where is it at? Went in your pocket, it's at home. I don't know where. but if a buyer, a co Buyer can't go on or a spouse can't go on, having something like the MCC to really boost their qualifying amount is so crucial. There are so many people who couldn't get homes that come to us. And because we know the programs and we're going to take the time, and when I say time, I'm talking 10 extra minutes, that's all these things are set up to where we do everything in house. We're not sending a file, we're not using paper. I refuse to literally send it to an agency or faxing a hundred pages up to get this done. It is literally asking a few more questions, making sure that you're looking at the most recent guidelines and making a judgment call to go ahead and literally present that to the owner or the buyer or the seller, whatever that looks like so everybody can come to the table and make some sense of it. Especially right now where I'm talking to my real estate agents I work with and I also work with home builders. So educating them on what's out there, what's available, how they can help market it, and also let's not tank a price where affordability is really what everybody is looking for. People want payment security, right? So when you can deliver programs like this through your local housing authority, you're going to increase your business. I think that there's probably os that work for every company out there that are asking, how do I get more business? How does, how do I get my business back on the page right now? And I'm not having that issue. I'm increasing over last year when rates were 2% lower and I can increase. It's because I am looking for all of the solutions in Diane's office is awesome. Get that friendship, that relationship going. Have someone maybe dedicated in that market to do so and kind of be the point person. it's great. It gets you a seat at the table to have these conversations and be in the know to make it happen. So, with that just to kind of show you what this does, when it comes to qualifying MCC, I used just a straight conventional, estimate to kind of show you the same tax credit that Diane had already referenced of $342. If you look at my first scenario here with the mcc, what I'm doing is I'm taking that MCC credit on this price house and deducting it from the payment. So now my qualifying payment is 2122 instead of 2464. Like that's a game changer as far as monthly qualifying amount and getting the person into the house that they need. When home prices have now increased, it's not outta their reach. So we could put them over the edge for qualifying and even if it didn't put them over that little tipping point for qualifying, again, if you help them and say, Hey, there's this product, it looks like you meet these, how many more people is that one person going to refer to you? What are your online reviews gonna look like that you came to the table with the solution for them that just made their life overall better? It is such a game changer and I feel that it is helping business excel just to reach out and, look for solutions. And even the cost with the agencies right now, with home prices doing what they're doing. Again, I'm sitting at the planning table with home builders and saying, Hey, you wanna sell homes? $20,000 price decrease. Let's not knee jerk. And I, I've been around long enough to have seen some things, in the 22 years I've been in the business. That's as close as you're gonna get to knowing my age. Okay. but let's not kneejerk and do that. Let's really talk about affordability for the consumer cause that's really what they want and how we can achieve that. And there's a lot of sellers out there giving credits or offering fixed interest rates because they're doing lock in shops and things of that nature. This also plays into that. And if there's a cost to acquire the MCC or the assistance many times right now in this market, that seller may end up taking care of that. So, knowing how to structure that deal to where not only does it qualify, but it gives them the best opportunity to get that home that fits their needs and give them payment security. It's golden. You have referrals for life. So we are taking a lot of applications from our past clients. They are calling us back to ask questions on how to navigate the market because they are being bombarded with advertisements about, Oh, I have equity, can I get my equity? And just they, you're their resource now. You told them this thing that nobody took the time to tell them about. And literally when it comes tax time, like Diane said, we'll be able to circle back to them, remind them that they have that and start that fresh lead cycle all over again because they'll be like, Oh my God, you're so right. Oh my gosh, this is what my lender did. And that conversation picks back up for that owner again because you help them.
Rob Chrane (
So, follow up question that Mosae, obviously your business is growing in a down market, so may maybe that answers all we need to answer, but do you, when you're, when you're working with borrowers, and helping them specifically with down payment assistance and MCCs, do you compete with other lenders on that business? Do you have any competitors that are doing the same thing?
Mosi Gatling (
I dont I'm very happy., I wake up every morning and I will take all the business and I'm not even gonna regret it because, I'm putting in work, I'm making the phone calls, I'm staying up on what's going on. When I see this when I've seen the market shifting, we're reaching out to Diane's office and any other housing office to say, Hey, this is what I'm seeing. What are you guys experiencing? They are moving with the times, which is refreshing. You're not gonna see them waiting two years to make tweaks in their guidelines and things like that. So, it is a now thing and as Diane said, if you don't tap into it, you've missed out already you really have.
Diane Arvizo (
So I will say, I just wanna add to that because Mosae is a top performer in our program and for good reason that you can see now we have lender partners all across the state, but it's interesting because we actually qualify participating in lenders at the corporate level. So Loan Depot can offer these programs, but at the loan officer or loan originator level, how many are actually providing that product offering? So you need to know what product offerings your company is offering. If they're not offering any, you need to get them on board. But one of the things that we do as a local housing authority that's highly engaged with our lender partners, especially those who are delivering the programs on our behalf, is we make sure that we're providing referrals to them. And you don't have to pay for those. So we have home buyer education online, for example, and in one month we had like over 800 home buyers take our home buyer education course who were then fed directly into our lender referral page where we only feature actively participating loan officers by name and face and links to the website. So, those are referrals that they don't have to pay for. We toss leads her way all the time, but when we do that, we do it fair and equitably. So, we're giving like three names out to every borrower in a different area. If we're talking to him on the phone, if they're on the website, of course they get to see everybody featured. Or if they're emailing us, we're give them several names. So, a housing authority can also serve as a referral partner to you, which I will then say when you're congratulating your borrower closing like on social and you guys love doing the little shout outs to the realtors and showing the signs, don't forget a key part that how they got into the home, through the down payment assistance program or whatever the program was that helped them. Because that is immediately gonna trigger more people who are seeing your post to call you to say how, what did they get? How did you get them in? Do I qualify?
Rob Chrane (
Absolutely. Yeah, And so that you bring up a good point because, housing finance agencies, housing authorities, always most of them work really hard to, to build relationships with lenders because lenders are the ones who directly bring them business. But one thing that struck me years ago, I think was at an Alpha conference, you were on a panel and, the battle rule Housing Authority also, works closely with realtors and not every housing authority does. And so, I mentioned how, we see in our business so many realtors saying, Please tell me a loan officer who can help me and help my clients with DPA. What do you see happening when you're creating these partnerships and you're mixing realtors and lenders and saying kumbaya and stuff like that.
Diane Arvizo (
No, I'm really glad you brought that up because, so for example, we offer a certified realtor course or real estate professional course on our website where agents can jump on and in 20 minutes they can kind of get the rundown of what they need to know to kind of be certified as an expert in the program. But really their expert job is to connect with an expert lender who can close the deal, right? Just like in any kind of synergy focused relationship you have with referrals, we tell our realtors, if you don't already have one, two, or three loan officers who actively use the programs in your direct referral network, you need to go get busy because you've got to make sure that you can close that full loop when a borrower connects with a realtor, you want that realtor then to bring you that business. And so it works both ways. So we often are, are kind of doing the dating game to make sure that we always ask our realtors, So who are your like kind of top lenders that you work with that you do a lot of referral business with? And if they name people I've never heard of before, I'm like, hey, we need to talk so we need to get mosae in your loop or we need to get so and so or whoever's a high performer in the area. And we'll often make that introduction.
Rob Chrane (
Awesome, So and related to that mosae your referral partners that send you these deals, refer these, borrowers to you. Do they only call you with borrowers who need DPA?
Mosi Gatling (
Absolutely not. They actually refer people that wanna do large down payments, 60% down, 50% down.
Rob Chrane (
And you'll do those ?
Mosi Gatling (
Twice on Sunday, like Absolutely. It's not all inclusive to down payment assistance. I mean, I do feel morally it helps that homeowner that's looking for those solutions. but it also, like Diane says, anyone can take that education course even if they have their own down payment. So there are people that haven't owned before or maybe it's been a long time, we still get those, Well I remember when I bought a house in 2006 and I kind of just sit back in my chair like, okay do here we go. Like, let me hear it. How did that go? And then we dive back in to tell them what it looks like now and they haven't purchased for three years or owned for three years. So they are considered first time buyers. They'll take her course and have their own down payment. So it is a awesome resource doing it. Get you more referrals because you are the source of the information and bringing something to the table to either help that real estate community help that builder, because you offer everything. And really right now, when the markets change like this, I've learned because I, like I've said, I've been around for a little while. The smartest kid in the room will win, period. So game on. I'm down to be the smartest kid. I will go out and get any information I need. I will knock on doors, pound the pavement, call Diane's office, invite a bunch of homeowners to a, call a home builder partner and say, Oh, you have a new model home. What price is it fits the guidelines, great. Diane's gonna be getting phone calls from me as these new homes open because she'll come out and they'll do an introduction to the program and kind of get everybody wrangled into what that looks like and be the professional in the room. We I was on the panel before talking about trust or distrust in the market, bringing in a partner in your local housing agency, man again, smartest kid in the room wins. And I gotta be around a group of those smart people that could help my buyers feel great about what they're purchasing, whether or not they're doing assistance. And again, you become the trusted source for referral partners and the consumer and that's what will make your business increase right now. Or any loan office or company or market that you just kind of need to level up increase right now.
Rob Chrane (
So we definitely had two of the smartest kids in the room. And just with, with just a couple minutes left, I want to see if anybody has any questions. I know we're bumping up against cocktail hour, but cocktail hour is two hours so we might be doing you a favor by keeping you here just a little bit longer
Mosi Gatling (
Drinks flow and Las Vegas. So
Rob Chrane (
Leslie you put up your hand or Yes, sorry, I can't, it's hard to see with the lights.
Audience Member 1 (
How work, like what's been your relation with third work workers? Like how is the, like are they reaching out to Wow Yeah. Channels that are for that brokers too, your knowledge of.
Diane Arvizo (
That's a really good question. We get that all the time. So with third party originators, so we have two different programs essentially. One is the down payment assistance program, one is the MCC program. So as a housing authority we can partner with third party originators brokers with our MCC program all day long. So, that can be offered regardless with the down payment assistance program, we use a master servicer, this is Nevada Rural Housings Program and Nevada Housing Divisions program US Bank Services as the master servicer. So, they have to approve the party. So, there's a few, they are working on expanding their TPO network but you do have to qualify, by US Bank in order to partner with the down payment assistance programs in the state that you're working in.
Rob Chrane (
Any other question? So Leslie.
Audience Member 1 (
So I wanted has a statistic that you, that of loans can be solved with things like assistance mortgage growth. So, in the last panel you mentioned some marketing outreach you doing, you're working with, referrals that other looking state authorities. But I wonder if, there would be an assumption, I think that you are turning down few people that you might have to down cause you're solving that have problems with tools at these. So as you have been improving the to close, are you seeing an inverse like decline in your turn down that helps your.
Mosi Gatling (
Yes. We are declining less people and part of, I've kind of kind of fostered this system within my team and my staff aside of telling people your why and explaining to them what you need to qualify the basis without using debt ratio. Just explaining to them payment and what you need to repay and kind of the market right now, a lot of them are willing to take key to some of the solutions we give. So, if we're talking to a customer and doing an application, I don't often tell people, Hi, I can't do a loan for you. I say, you know what? I can do a loan for you if, and then I put if dot, dot dot and I'll talk to them about it and I literally email them their ifs because ifs are getting a co-signer ifs are proved to me this other income that you talked about. Just really digging deep on that application to make sure I am getting every little tidbit from them in order to have solutions. Again, this is where you have to dig deep, you have to get all the data and the information from them to give them good recommendations. So, the days of a sad 1003 are long gone. Okay, you can't do the lazy 1003, nobody can. So I would say that that would be like recommendation one. Oh you know one because I have ripped apart in 10 0 3 s and said, oh this is so sad . because how, I do this for a living and half for a long time if I'm looking at it and I'm like, I don't know what's happening here. So it's amazing to be able to go back and coach people that work for you to handle, because I feel that they're my lead sources. My team literally my juniors do my lead sources, I have to answer for that. It's my reputation so they get to do it my way and it has to be a great application because then you can really dig deep to let that person know solutions to help get them in the home. And again, just taking the time with them, that extra 10 minutes also nets more referrals. So you did, they don't walk away saying, I got shot down. I am more than happy to take your application and submit it to underwriting. I have some recommendations for you because I feel we can be successful if that is huge. So yes, less declines, more solution based lending and recommendations on the front end and they will go out and get that co-signer of a parent or you know what, my cousin was gonna live with me anyway. Great, how about we get that application? When can I talk to them? And we're really just helping people have ownership and the the major thing right now with rents going up that payment security is huge for them. They just wanna feel safe.
Rob Chrane (
Absolutely. Any other questions out there? We'll, we'll stay as long as you want. We can talk about this all night, right? Yes sir.
Audience Member 2 (
One question is, do you think there's money being left on the table at those local housing or you think there are not enough officers who are aware of these options? Is, state government money left on the table.
Diane Arvizo (
So, that's a really great question as well because I think in times like this where things are shifting, people are kind of scrambling to find like, and actually write what their new business model is. Where am I going to go replace some of the volume that I've lost? And they are not always looking to the partners who have been there by their side all along because they're kind of in panic mode. They're kind of in that, how do I, stop the bleeding. And so that's a good question. So I will say with our down payment assistance program at Nevada Rural Housing Authority, that is a public private partnership through the sale of mortgage, mortgage backed securities that enables the funding for down payment assistance. So, there's never any money left on the table, but there is some twiddling of thumbs like, hello, we've got all this money we're bring, we're actually contributing half the down payment assistance right now to help lower the rate so that we're not having to price into the rate all of the down payment assistance. We even offer unassisted so that borrowers who might have like an 8% interest, which I know we're not going to but interest rate that they can come into our program with no down payment assistance if they don't need it and get that below market rate even though they have a 640 challenging kind of FICO. And then on the other side of that we have the mortgage credit certificate program, which the clock starts ticking on that because that is tax exempt bond financing that funds the mortgage credit certificate program or bond programs through other housing authorities. And so yes, it is crucial to put that money to good work. And an example is Nevada Housing Division, who's kind of our sister agency, has a first time home buyer bond program that they're subsidizing the interest rate on that and getting some smoking rates with up to 4% down payment assistance. So, for borrowers that are lower income and can buy a home below the price point, man, that is like the only program I would take them to. So, I think it's important to understand that because that is limited funding and you do need to rely on putting that to good work so that, the housing authority can actually replenish that down the road, Yeah.
Rob Chrane (
Yeah. And I'll just piggyback on that from our experience because as I mentioned, we, we manage a database of over 2200 programs around the country that represents, over 1200 different program providers, whether they're housing authorities, housing finance agencies, municipalities, we're in touch with them every month. We've been doing this for 15 years and we've never talked to anybody who says slow down, we don't have the capacity to do more.
Diane Arvizo (
Yeah, we funded through all of covid, the whole shutdown. We never had one time where we turned off never once. I
Mosi Gatling (
Don't think you've turned off like, I've been back in Vegas doing DPA through you guys since like 2006.
Diane Arvizo (
Oh that's when we launched the program, she knows your stuff.
Mosi Gatling (
Like I said, I've been through some things just by telling you that date 2006 and through all that it never shut off on us.
Diane Arvizo (
That's a good point. I'm gonna hijack on that to say another reason to get your information from the source of a housing authority is critical because during the, kind of aftermath of the immediate shutdown that Covid brought a couple years ago, we had one particular mortgage company who disseminated through their corporate channels, no more down payment assistance at the local loan officer level. They then told their whole realtor network that who then we were flooded with phone calls. What do you mean no down payment assistance program? Is it shut off once it coming back on? It's like we never shut off that company Did heavy warehouse lending decided that was gonna be something they wanted to monitor for a little bit. So they shut it all off so that they were wanting to get a gauge of the market. They then quickly turned it back on. But that was their decision, not a housing authorities decision. So a lot of home buyers were.
Mosi Gatling (
PS in that couple weeks. I was very happy to contact all of those real estate agents and buyers and post on my social media and let them know I was open for business and we are doing loans. Where are you at ? But that's what I'm saying. That's what makes the difference in this market. Something that small and for you to know your stuff, stay engaged, follow them on social, follow them, their website. When I come in first thing in the morning, I pull up my housing authorities, see what their rates are that day. I have to be abreast of what's going on. So fostering that within your staff, your offices locally and like I said, if you have to have a regional or maybe just a local branch manager that's a point person to really work with them, work with them, the business is there. Okay, I know everybody's seeing the the drop off, but this is where we shift and, and we stay strong and keep going. And one thing I told my management is recession. I'm not participating in a recession and I'm gonna say that every morning when I get up, I'm not participating in a recession, we're not doing this and I'm gonna push forward and find ways to make it happen for, because there are too many people out there that want homes. I think, Rob, you told me a statistic of how many people were mortgage ready?
Rob Chrane (
Yeah, so like 32 million, 32 million renter households, 45 years and younger mortgage ready and lot of them mortgage have just, a lot of 'em have disqualified themselves because they don't think they have enough money or whatever.
Mosi Gatling (
Yes, they just sit on the sidelines. They're there you have to know some of these things. So tapping in is huge.
Diane Arvizo (
Yeah. I will also add that housing authorities, at least if they're on the cutting edge of what's happening in a changing market, like we are , we are always trying to fill the need meet borrowers where their need is and where lenders are in their business models. And, so by bridging the gap, we sometimes have to introduce new programs, which in itself is challenging. So, I would make sure that you're staying dialed in with what your local housing authorities are providing cuz new down payment or types of programs that provide gap products are coming out. Like they are coming
Mosi Gatling (
They're coming out, ghey are lookin for ways.
Diane Arvizo (
I can't tell you anything secret, but I can tell you more stuff is coming all the time.
Mosi Gatling (
One thing though, one thing they rolled out that was key for my builder partners is when something like this happens and there's a shift, the timing to be able to lock a buyer with my housing authority has literally been about 30 days before close just because I have to have the loan, we're talking loan delivery here, I have to deliver it within a certain point after locking it 70 days. So, if I go lock the loan at 30, I give my corporate office time to get the docs back and things of that nature. Securitizing and delivering the package to the master servicer, and getting it through compliance. They started offering us unlimited extensions. Okay. Extension was like, is it loss of life or limb to extend? Okay, because you knew what the date was, why are you extending? So for me to be able to go back to my builder partners and say, Hey, we're back on. I'm not risking your sale by trying to lock someone and the rate expiring and they can't get it and you're stuck with a home saying I can get this product for your consumer. And that's how they get invested with looking at ways to offset cost for it and being able to extend it if they think it's gonna close in a month. And there's delays because of the pandemic. There's a lot of that we ran into, because of supply and demand, just frankly air conditioning units, you name it. So, being able to extend those were huge. And coming to my builders with that, they're like, Are you serious? Absolutely as a heart attack, or if something happens with an escrow, having that backup. So they are innovating and looking for ways to make this happen. And that's a shift they made because of covid. Okay. and it wasn't able to be done before. So I, promise everybody is making, trying to make ways out of where you would think there's not a way. So, knowing and just getting out there and figuring out what's really on the table and not taking the word of a company or someone that's not really sure and it does, it's no extra paperwork. I process the loan like normal. There's nothing I code it that it's that we reserve it online and then we carry the underwriting and everything to the finish line. We're not sending out the loan or the paperwork or waiting for approval. There are no delayed closings. There's no such animal. So all that is off the table. If somebody delayed a closing, that means maybe on the lo or processing level, it went orry way before that closing date. There's no hangups on this. It is definitely worth it.
Rob Chrane (
You guys are awesome. Mosae, Diane, thank you so much for taking your time to be here for coming down, and sharing with everybody. Absolutely. Thank you guys.
Mosi Gatling (
Thank You.