See posting at Alethes' Values Statement blog....
http://alethes-values.blogspot.com/
Saturday, April 11, 2009
Just Plain Do A Good Job
As I move into a new era of Alethes and think about the past; mistakes, successes, record high months, record low months, people hired, fired, layed-off, run off - it is apparent to me that we did best when we just did what we did well.
And with people that wanted to just plain do a good job. People with agendas that matched the company's mission and values.
Not people who had their own agendas and motives. People you could trust to just plain do a good job.
Not people who come to work everyday because they were going to make a bunch of money, but because they want to do a good job.
I can talk about being good leaders, what our mission statement means, how to live out values, etc, etc, etc, until I'm blue in the face and with worn knees. But if those I'm talking it to just want the money, just want to get in and get out.....waste of time.
And, for the most part, if the people I'm talking to are the right people, I don't have to do much of that other anyway.
To that end....
Danny
And with people that wanted to just plain do a good job. People with agendas that matched the company's mission and values.
Not people who had their own agendas and motives. People you could trust to just plain do a good job.
Not people who come to work everyday because they were going to make a bunch of money, but because they want to do a good job.
I can talk about being good leaders, what our mission statement means, how to live out values, etc, etc, etc, until I'm blue in the face and with worn knees. But if those I'm talking it to just want the money, just want to get in and get out.....waste of time.
And, for the most part, if the people I'm talking to are the right people, I don't have to do much of that other anyway.
To that end....
Danny
Friday, April 10, 2009
Head-Down, Chin-Up
Update, 4/10/2009: This blog is taking on a new format, I'm just not sure exactly what is as yet. Let's say though that it is "maturing." I'm considering a change in the name also; TableTalk, or To That End....
Or, Thinking.....Inside the Box.Things change, though my mission remains the same, my values are unchanged, but my vision is a bit impaired at the moment.
That'll clear up in time. For now, Head Down-Chin Up!
Or, Thinking.....Inside the Box.Things change, though my mission remains the same, my values are unchanged, but my vision is a bit impaired at the moment.
That'll clear up in time. For now, Head Down-Chin Up!
Thursday, April 9, 2009
Inside the Box, Outside the Box? What's up with either?
This has brought up some interesting conversations and some people have been surprised that I think of myself as an inside the box kind of guy! LOL, I've even been accused of trying to create an "out-of-the-box" type culture.
Case-in-point: Alethes and how we pay our loan officers - quick, fast, and everyday. Literally, we do a W-2 payroll daily. That is nothing but "out-of-the-box." Right?
Not true. It is as purely in-the-box. Creative, but IN-THE-BOX. There was a need - loan officers wanted to be paid fast - we could fill it. In the early days, that was easy - loan would fund, we would get a call, Paul would go pick up the check, and cut the LO a check; 1099 type compensation, nothing about bills being paid - real simple.
Today, it is a bit more complicated; W-2 wages, bills paid for proceeds, splits with managers, copy of file, uploaded and QC checks, etc, etc, etc.
But still, it was and is inside-the-box thinking; what's the need, can we fill it? Can we improve on it?
And outside-the-box? What's up with that? I love the idea, but it lives out too much as wishful thinking and leads to volatility. It reminds me of a horse my Dad had named Paco. That horse was never satisfied with anything on his side of fence. He had to have the grass on the other side and constantly got cut-up in the barbed-wire getting to it.
Our culture is about finding needs that we can fill and filling them to the best of our ability. As those abilities improve and/or deteriorate, we evalutate and correct to the best of our abilities.
Dream, but don't live in a wishing world. My Dad use tell me to wish in one hand and fill the other with sand and see which one filled up the quickest. Let's be creatively inside-the-box successful.
Head down, chin up.
Danny
Case-in-point: Alethes and how we pay our loan officers - quick, fast, and everyday. Literally, we do a W-2 payroll daily. That is nothing but "out-of-the-box." Right?
Not true. It is as purely in-the-box. Creative, but IN-THE-BOX. There was a need - loan officers wanted to be paid fast - we could fill it. In the early days, that was easy - loan would fund, we would get a call, Paul would go pick up the check, and cut the LO a check; 1099 type compensation, nothing about bills being paid - real simple.
Today, it is a bit more complicated; W-2 wages, bills paid for proceeds, splits with managers, copy of file, uploaded and QC checks, etc, etc, etc.
But still, it was and is inside-the-box thinking; what's the need, can we fill it? Can we improve on it?
And outside-the-box? What's up with that? I love the idea, but it lives out too much as wishful thinking and leads to volatility. It reminds me of a horse my Dad had named Paco. That horse was never satisfied with anything on his side of fence. He had to have the grass on the other side and constantly got cut-up in the barbed-wire getting to it.
Our culture is about finding needs that we can fill and filling them to the best of our ability. As those abilities improve and/or deteriorate, we evalutate and correct to the best of our abilities.
Dream, but don't live in a wishing world. My Dad use tell me to wish in one hand and fill the other with sand and see which one filled up the quickest. Let's be creatively inside-the-box successful.
Head down, chin up.
Danny
Thursday, April 2, 2009
More thinking....Inside the Box
Most of us have some sort of goals, aspirations, missions, values, etc. Yet, we want things to be just right, if not perfect, before we concentrate on achieving them.
When things get tough, we start wishing they'd be better and that wishing comes across as whining.
In the books QBQ and Flipping the Switch, Miller teaches the reader to learn to ask What and How questions; What can I do to make money with what I have? How can I succeed without spending money marketing myself? What does this company have that can help me succeed? What makes me think the grass is greener elsewhere?
Thinking outside the box has been a big thing over the past few years. It was probably 10 or 11 years ago that a former colleague gave me one of those little contraptions that sets on your desk; it was a stick figure of a guy setting outside a box with the caption - Think Outside the Box.
I realize that he gave that to me because I seemed to be a "think outside the box kind of guy." But, I'm not. I can dream with the best, but I like to work with what I have and improve on it. There's not much I've ever done that wasn't a continuation of something else.
And when I've stumbled? I pick myself up, brush myself off, and get going again. And I pray I learn from that previous stumble.
Learn? That means to change. Learning without changing is some kind of useless head knowledge.
Work well, Pray well, and succeeding where we are - in the box, improving on what we have, but not looking for something greener.
To that end.....
Danny
When things get tough, we start wishing they'd be better and that wishing comes across as whining.
In the books QBQ and Flipping the Switch, Miller teaches the reader to learn to ask What and How questions; What can I do to make money with what I have? How can I succeed without spending money marketing myself? What does this company have that can help me succeed? What makes me think the grass is greener elsewhere?
Thinking outside the box has been a big thing over the past few years. It was probably 10 or 11 years ago that a former colleague gave me one of those little contraptions that sets on your desk; it was a stick figure of a guy setting outside a box with the caption - Think Outside the Box.
I realize that he gave that to me because I seemed to be a "think outside the box kind of guy." But, I'm not. I can dream with the best, but I like to work with what I have and improve on it. There's not much I've ever done that wasn't a continuation of something else.
And when I've stumbled? I pick myself up, brush myself off, and get going again. And I pray I learn from that previous stumble.
Learn? That means to change. Learning without changing is some kind of useless head knowledge.
Work well, Pray well, and succeeding where we are - in the box, improving on what we have, but not looking for something greener.
To that end.....
Danny
Tuesday, March 24, 2009
Being Creative...Inside the Box
John G. Miller, in his books QBQ and Flipping the Switch, writes about being successful while working with what we have. Hense, "in-the-box."
On page 39, of QBQ, he writes - Every organization has imperfect systems and finite resources. We may wish we had newer tools, better systems, more people, and bigger budgets. But thinking too much about what we'd like to have is another cause of procrastination.
I liken that to "the grass is always greener on the otherside."
There are a lot of things in life we don't have control over, and then there are times we've made bad decisions. We can't fall into the "I wish...." discussions with ourselves.
We have to learn to succeed with what we have. As some wise person once said, "have lemons, make lemonade."
And we can be creative while "thinking inside the box." Miller points out we can employ Creativity when we ask the QBQs:
On page 39, of QBQ, he writes - Every organization has imperfect systems and finite resources. We may wish we had newer tools, better systems, more people, and bigger budgets. But thinking too much about what we'd like to have is another cause of procrastination.
I liken that to "the grass is always greener on the otherside."
There are a lot of things in life we don't have control over, and then there are times we've made bad decisions. We can't fall into the "I wish...." discussions with ourselves.
We have to learn to succeed with what we have. As some wise person once said, "have lemons, make lemonade."
And we can be creative while "thinking inside the box." Miller points out we can employ Creativity when we ask the QBQs:
- What can I do to succeed with the tools I have?
- What needs can I fill?
- How can I help develop the products I have?
- What action can I take to move forward?
To that end....
Danny
Thursday, March 19, 2009
An email from John McCully, AE, Flagstar
Used with permission: an email from John McCully
As a valued customer, who I want to protect and educate, I need to discuss the most recent changes with rates, locks and future turn times.
I am sure you are aware, the Federal Reserve put a tremendous amount of money into the market yesterday, to buy mortgage backed securities. This is going to have a noticeable positive impact on interest rates over the next week.
See Below Mortgage Market Commentary, provided by RateAlert “Mortgage backed securities (MBS) prices have held nearly all of the gains from yesterday afternoon's dramatic rally following the Fed's announcement; FNMA 4.5% coupon 102.44bps, -6bps. MBS and Treasury yields plunged yesterday as the Fed surprised investors with additional plans to lower consumer borrowering costs and lift the economy from recession. 10yr note yields tumbled 47bps yesterday, most since 1962, while yields on FNMA 4.5% coupon fell 27bps; widening the spread from 210bps to 230bps, up from an average of 175bps the past decade.
The central bank is trying to lower rates by reducing the supply of outstanding mortgage bonds, boosting the prices and thus lowering the yields. Lower mortgage rates by themselves may not be enough to spark demand for home purchases. Slumping stock prices, record foreclosures, falling home prices and job losses are reducing demand for new & existing homes.
Consumers are also having difficulty obtaining mortgages as banks tighten lending standards. Jobless claims fell 12k to 646k and the number collecting benefits swelled to a record 5.47 million. The index of leading economic indicators fell in February reflecting worsening conditions and the Philadelphia Fed index at minus 35 showed manufacturing shrank as orders and employment weakened.”
I am sure your customers are pushing you to get them locked at the “perceived” 4% interest rate! I have already heard this rate being quoted on several news stations and consumers have little knowledge of what this really means. You are in the position to educate your customers and I strongly suggest you do so! So given that statement, here is what I want you to pay close attention to.
Rates have come down or better, YSP has increased in relationship to rates. In my last pricing, 40 day lock, on an Agency Fixed indicated 4.625 <.104> but 5% was paying <1.134>. This is usually an indicator that yields/margins are higher but the market still has some adjusting to do in the next few days. Now, we hope that means rates will continue to lower, but only time will tell. Make sure you do not get swept up in your borrowers panic based on what they heard on TV.
You still need to manage your lock policies to protect your relationships with your lenders and to mitigate your financial risk of having to pay a Pair Off fee. Loans that are locked with a lender presently need to stay with that lender and close! I do not want to loans moved to Flagstar that have locked somewhere else and conversely I do not want to see you bust a lock with Flagstar and be charged a Pair Off Fee because it closed somewhere else.
If you are not sure what our Pair Off Fee Policy is then go review memo # 09044 dated 03/04/09. It is located under the Sellers Guide Tab along with our lock & extension policies, Doc #’s 4101, 4104, 4121 & 4122. If you have not read these documents then I suggest you do so. When you are looking at rates and making quotes, please quote the 40 day lock period! This will give you and your customer enough time to close.
We are going to see Underwriting Turn Times increase as the new flood of loans come into the system. Look at our posted Underwriting Turn Times on the bottom left-hand corner of our website. They are updated every morning and are monitored estimates that are available to you 24 hrs a day.
Also, make sure your borrower will qualify by running AUS and give a written quote (GFE) to your borrowers prior to locking. Your borrowers need to share in the responsibility of locking their loan. Get a verbal or written commitment that they understand what it means to lock. Consider charging a lock fee if you are not comfortable with their commitment!
Bottom line, keep your lock fall-out at <25%.
So, let’s watch the market and make good sound decisions! I encourage you to use this logic with all your lending relationships. We, remaining lenders, are watching these issues closely and we are less tolerant of abuses within underwriting and with lock fall-out.
Flagstar will be issuing internal communications on our offering to renegotiation rates with loans that are presently locked. When we do, I will make sure you know what that looks like. Keep breathing and stay smart!
Thanks!
John.McCully@flagstar.com
As a valued customer, who I want to protect and educate, I need to discuss the most recent changes with rates, locks and future turn times.
I am sure you are aware, the Federal Reserve put a tremendous amount of money into the market yesterday, to buy mortgage backed securities. This is going to have a noticeable positive impact on interest rates over the next week.
See Below Mortgage Market Commentary, provided by RateAlert “Mortgage backed securities (MBS) prices have held nearly all of the gains from yesterday afternoon's dramatic rally following the Fed's announcement; FNMA 4.5% coupon 102.44bps, -6bps. MBS and Treasury yields plunged yesterday as the Fed surprised investors with additional plans to lower consumer borrowering costs and lift the economy from recession. 10yr note yields tumbled 47bps yesterday, most since 1962, while yields on FNMA 4.5% coupon fell 27bps; widening the spread from 210bps to 230bps, up from an average of 175bps the past decade.
The central bank is trying to lower rates by reducing the supply of outstanding mortgage bonds, boosting the prices and thus lowering the yields. Lower mortgage rates by themselves may not be enough to spark demand for home purchases. Slumping stock prices, record foreclosures, falling home prices and job losses are reducing demand for new & existing homes.
Consumers are also having difficulty obtaining mortgages as banks tighten lending standards. Jobless claims fell 12k to 646k and the number collecting benefits swelled to a record 5.47 million. The index of leading economic indicators fell in February reflecting worsening conditions and the Philadelphia Fed index at minus 35 showed manufacturing shrank as orders and employment weakened.”
I am sure your customers are pushing you to get them locked at the “perceived” 4% interest rate! I have already heard this rate being quoted on several news stations and consumers have little knowledge of what this really means. You are in the position to educate your customers and I strongly suggest you do so! So given that statement, here is what I want you to pay close attention to.
Rates have come down or better, YSP has increased in relationship to rates. In my last pricing, 40 day lock, on an Agency Fixed indicated 4.625 <.104> but 5% was paying <1.134>. This is usually an indicator that yields/margins are higher but the market still has some adjusting to do in the next few days. Now, we hope that means rates will continue to lower, but only time will tell. Make sure you do not get swept up in your borrowers panic based on what they heard on TV.
You still need to manage your lock policies to protect your relationships with your lenders and to mitigate your financial risk of having to pay a Pair Off fee. Loans that are locked with a lender presently need to stay with that lender and close! I do not want to loans moved to Flagstar that have locked somewhere else and conversely I do not want to see you bust a lock with Flagstar and be charged a Pair Off Fee because it closed somewhere else.
If you are not sure what our Pair Off Fee Policy is then go review memo # 09044 dated 03/04/09. It is located under the Sellers Guide Tab along with our lock & extension policies, Doc #’s 4101, 4104, 4121 & 4122. If you have not read these documents then I suggest you do so. When you are looking at rates and making quotes, please quote the 40 day lock period! This will give you and your customer enough time to close.
We are going to see Underwriting Turn Times increase as the new flood of loans come into the system. Look at our posted Underwriting Turn Times on the bottom left-hand corner of our website. They are updated every morning and are monitored estimates that are available to you 24 hrs a day.
Also, make sure your borrower will qualify by running AUS and give a written quote (GFE) to your borrowers prior to locking. Your borrowers need to share in the responsibility of locking their loan. Get a verbal or written commitment that they understand what it means to lock. Consider charging a lock fee if you are not comfortable with their commitment!
Bottom line, keep your lock fall-out at <25%.
So, let’s watch the market and make good sound decisions! I encourage you to use this logic with all your lending relationships. We, remaining lenders, are watching these issues closely and we are less tolerant of abuses within underwriting and with lock fall-out.
Flagstar will be issuing internal communications on our offering to renegotiation rates with loans that are presently locked. When we do, I will make sure you know what that looks like. Keep breathing and stay smart!
Thanks!
John.McCully@flagstar.com
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