Mortgage Blog

I have a very good friend who is very good at security investment. He successfully held all cash on both 401k account and all the investment accounts before the crash in 2008-2009 and did have over 30% returns each year for a few years now. And he asked my opinion about his quitting the job as an engineer and start his own company for the assetment  managment.

Two things we talked about is what's his strength and how can he do better this year. And one of my suggestion to him is how can he improve the return of 5% to 10% if he can timing the sell/buy orders better. And the same question to me, how I can "predict" the market so that I can get better rates for my clients.

And I always think about the following:
1)What's my advantage against my competitor?
2)Which area I should improve?

For the first question. I think here is the answer:
1)Low overhead cost.
a)I use contract processors(not in-house processors), So I only pay them case by case and when I am very busy.
b)I have the most effecient work-flow system, which allows me to originate/close lots of loans very smoothly.
c)I am one of the loan brokers who originate not only wholesale loans(those
loans will be sold to GSEs), but also correspondent loans(we purchase those
loan and sell to the other investors); the company also tried to originate loans
in all the states in the whole united states(just for my current clients).

So low overhead cost, a little bit lower margin, will have lower rates.

How Can We I better?
1)My knowledge about  the bond maket(also the rates) helped me a lot in 2009. I floated a lot of loans in May-July, 2009 when the rates were high, since I know the rate will go lower the end of the year; And successfully predicted a few short term bottom/top rates in 2009(please refer to the previous blog article, monthly newsletter and those archive rate trend analysis. I will continue to do so in this year.

2)I am one of the mortgage brokers invested on mortgage tools and mortgage
related magazines. Will continue to do this year also and besides, I will add more real estated related info to my clients, espcially to the first time home buyers.

3)I will constantly updated this Mortgage Blog and mortgage rate trend analysis. I know a lot of friends need my opinion about the rates, especially when the rate is higher.

4)I will introduce more about the mortgage industry updates in the future in this blog.