April 14, 2025 • 13 mins
Nikki covers interest rate volatility, USDA financing changes for manufactured homes, and strategies for maintaining client relationships.
• Interest rates are correcting after last week's tariff-related volatility, settling back into the low sevens and high sixes
• Previous clients are re-engaging in the market due to lease expirations, credit improvements, and life changes
• USDA/Rural Development now allows manufactured homes with 0% down financing, expanding options for rural homebuyers
• Self-employed borrowers changing business structures need to demonstrate "continuity of income" for mortgage qualification
• Real estate professionals should focus on organizing and nurturing their "databank" of contacts through consistent communication
• Staying top-of-mind with clients is crucial as everyone experiences various life changes that can trigger real estate needs
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
All right, welcome to the Monday Market Update Call
with Nikki and myself.
And, yeah, it is April 14th andwithout further ado, nikki,
I'll let you go.
Speaker 2 (00:15):
Awesome.
Happy Monday everyone and happyalmost tax day.
But I don't know if that's ahappy thing or not, but
regardless of that.
So in the market this morninginterest rates are doing a
little bit of course correctionfrom the events of last week.
So last week after the tariffannouncements were happening, we
were having tons of volatilityfrom an interest rate standpoint
(00:36):
.
I mean we're seeing rates likedown to 5.875, up to eight and a
quarter in a single day andjust a lot of volatility
happening in the marketthroughout the week.
Since the announcement of the90-day suspension or 90-day
delay in the tariffs, we arestarting to see that course
correction happen in theinterest rates.
Now we're down into the lowsevens, maybe the high sixes,
(00:58):
depending on if you want to paypoints or not, but things are
starting to course correct tothe rates that we were seeing
into the mid sixes and we'rehoping that things will kind of
level out from a playing fieldstandpoint.
We can kind of hover in thatmid six range while that
information is, you know,keeping going and wondering.
You know what the tariffs aregoing to actually be and any
other you know announcements ormarket information that could
(01:20):
affect the interest rates.
So the good news is is that weare seeing the course correction
.
Super important that we'repaying attention right now to
what the media is saying andthen helping our clients
understand you know what thereality is, and so that's really
what the concentration is onright now.
Ironically, I have seen a lotof people reaching out to me
wanting to get pre-approvedagain that I hadn't worked with
(01:43):
either in a year or a year and ahalf or so, and so there's been
I think I've got like sixapplications from prior clients
that I hadn't really been in aton of contact with and now
they're wanting to re-engage and, you know, start the
pre-approval process over again.
So it might be a good idea foryou guys to contact people that
you know maybe were a year outor a year ago, that you might
have lost contact with, andre-engage them to see where
(02:05):
they're at from a you knowfeeling standpoint and where
they want to be, also from a youknow on the street standpoint.
Usda or Rural Development madean announcement last week about
changes to their financinginformation that they're willing
to do so.
They historically have notallowed manufacturer homes to be
(02:25):
eligible for rural developmentfinancing.
Now they have actuallycorrected that and they are
allowing manufactured homes forRD or USDA financing.
As a reminder, manufacturedhousing normally requires at
least 5% down, but with ruraldevelopment.
This is a 0% down mortgage.
(02:46):
It is 0% down, it isincome-based, it is for people
living in rural areas and it hasa lower mortgage insurance
amount than you would find on aconventional or an FHA loan most
of the time.
So a lot of really positives tothat program.
But now that they're allowingmanufactured homes, that's an
additional positive.
(03:11):
The other thing I wanted to talkabout is a little nuance with
self-employed borrowers that Ihave actually had to deal with
twice this past week.
So when you have aself-employed borrower and they
are using a Schedule C on theirtax returns or they are an LLC
on their tax returns orsomething of that nature, and
they're switching from thatSchedule C to an S-Corp or a
corporation or some other way oftax filing, from a lending
(03:33):
standpoint they are allowed todo that as long as we have
what's called continuity ofincome.
What continuity of income is ismaking sure that the business
that they had showing on theSchedule C is the same business
as the one that is filed underthe new way of filing.
So whether it's an S-corpcorporation or if they're going
(03:54):
from a corporation down to anS-corp or whatever the change in
filing is.
We need to make sure, as alender, that there's that
continuity of income.
To be clear, the client isallowed to change their business
structure for tax purposes andstill qualify for that mortgage.
We just need to make sure thatif there is a business name
change so in other words, if youjust filed a Schedule C under
(04:16):
your individual name and nowyou're filing an S-Corp under an
LLC or a different name thatthose two businesses are the
same business if there is a namechange and then if identifying
through two years of tax returns, that that is the same business
that has been in existence.
And so really what we look forfrom a lending standpoint is
(04:38):
that continuity of income piece.
It is important not only to tiethe two together, but it's also
important for what we can usefor qualifying income.
So when we have a client who'sbeen self-employed for at least
five years, most of the time wecan use one year of tax returns
for qualified.
If we have a self-employedclient who is self-employed for
less than five years, then weneed two-year average.
(05:00):
That could be very importantfor people who have, let's say,
got a huge increase in theirprofit from their business in
2024 versus 2023, or people thatare changing the structure of
their business.
We need to be able to tie thosetwo together, and so it's
really important that you knowus as lenders, know that up
front and then also can justspeak to the client about how
(05:22):
we're going to set them up froma pre-approval standpoint.
Speaker 1 (05:27):
Absolutely Thank you for that.
And then I just wanted to goback.
So I think that is great thatyou have some clients coming
back.
You said you had six comingback who are kind of on hold.
What, just for all the agentslistening and I definitely agree
, you should always be reachingout Anybody that gives you a
timeline, automatically split itin half and then quarter it and
(05:51):
just continue to stay in frontof them.
But what are exactly thoseconversations or what are they
saying?
Or if you had the top, you knowa couple reasons of why they're
resurfacing.
That will just give the agentslistening a little bit more
inkling of who to really reachout to and what to say.
Speaker 2 (06:09):
Yep.
So anyone that had you knowreally a couple of them were
that they signed a lease and thelease is coming up in three
months.
One of them very creditspecific, that they've been
working on their credit all year.
One of them, you know really,was from 2023 that just randomly
reached back to me and said,hey, I want to try to get
(06:29):
through this process again.
Another one had a job changewhere they were making more
money.
So they're coming back andsaying, ok, now what can we
qualify for?
So all those different lifechanges that have been happening
that are really like jobrelated, credit related, you
know things of that nature.
That's why they're coming back.
You know, oftentimes it's we'rehaving another baby.
Oftentimes it's, you know,we're getting married.
(06:51):
You know things that arechanging life events that, again
, we all talk.
We talk about it all the time.
But just knowing when thosethings are going to happen and
being able to reach back out andnot necessarily talk about
whether or not they're going tobuy a house, but just
congratulate them on the lifeevents and you know, eventually
that helps, helps them toremember you and to reach out to
you when, when they needsomething.
Speaker 1 (07:16):
Absolutely, and I think that that's a perfect,
perfect segue into kind of whatI want to talk about today.
And that's everyone you come incontact with is fighting their
own battle.
Everyone has stuff going on andeveryone has life events coming
up.
So a lot of agents what I'venoticed in coaching and
mentoring them is we get intoour own heads and we make up
(07:38):
these whole stories that youknow why we should call or we
shouldn't call, or what might behappening, or why this person's
ghosting us or why they're notresponding to us.
And so I really Really want tosay it again, especially for the
agents on here that I coachit's us, we're the problem,
(08:00):
you're your only problem andyour only solution.
So it's really getting out ofyour own way and out of your own
head and not making up thestories or the excuses and
letting the doubt creep in as towhy you shouldn't be reaching
out to these people.
And that's why I love all theexamples you gave, nikki,
because things change,circumstances change and what's
(08:22):
our role in you?
As a business owner, anentrepreneur and a real estate
agent, your role is to be top ofmind, and what that means is,
when their hand goes up andthey're ready.
You should be the first name inperson and real estate agent
they think of and if you are not, that's on you.
So it's really important thatyou and I've had with another
(08:46):
agent this morning that's new toeXp and she's blown away by
KVCOR and all of the campaignsand everything that you can
automate so that you having toshow up and make the call or
make the text can be once aquarter.
But what are you doing inbetween that?
What are you sending outnewsletters?
Are you on a holiday drip?
(09:06):
Is there a home anniversary?
Is there a birthday?
Their kids birthdays, theirspouse?
I mean, you can have so manythings in your drip campaign
that are customizable to thatspecific person and it will feel
like it's coming from you.
And if you don't have KB Core,again, technology and AI is off
(09:29):
the charts and it's only gettingbetter.
So whatever CRM you are runningshould have some sort of
capability and we I have.
Yet, honestly, in the hundredsof agents that I've coached and
come in contact with, I don'tthink I've met one yet that has
their data bank.
It's not a database, it's adata bank in order.
(09:51):
Because if you don't have yourdata bank in order and have
these prospects, your peoplethat know you, like you, trust
you, past clients, people, youknow your sphere of influence,
all of it.
If you don't have them in yourdata bank and you have these
campaigns set up and you're outbuying leads, that's you're
(10:11):
stepping over $100 bills to pickup pennies.
It's all there, it's all readyto go.
You just have to tap into it.
So I just wanted to give thatfriendly reminder and, nikki,
exactly what you said.
Six people came back around andI know how you show up and
that's because you showed up andyou were there and when their
hand went up or their lease cameup or they're thinking about
(10:35):
this or had a job switch, theyknew first and foremost to call
you.
Speaker 2 (10:40):
Yeah, that's a lot of stuff that we you know, that we
talk about all the time withyour data bank I'll use that
same term is, you know, a lot oftimes I won't even get a
response for an entire year fromthese clients, or you know
potential prospects or whateverit is, and so when I'm not
getting responses, then I haveto go back and I have to analyze
, like, is this the type ofclient that I want to continue
(11:02):
to pursue, or is this the typeof profile or client that I
really want to be able to dobusiness with?
And that's when you can takeall that, all those people that
you know, and you can start tofunnel them down of people who
just aren't responding, andreally then deciding is this a
person that's ideal for mybusiness, and narrow it down
that way as well.
Speaker 1 (11:25):
Absolutely.
Was there anyone on the callthat wants to come off mute?
Do you have a question forNikki or myself?
Before we wrap it up, I alwayslike to give the people that
show up live the opportunity,all right, well, with that said,
then the recording will be onmy YouTube channel and podcast,
(11:46):
and if you have any needs for agreat lender, reach out to Nikki
.
Coaching and mentorship,regardless of if you're with eXp
or not, reach out to me.
We're here and happy to help inany way at all.
Have a good one everyone.
All right, welcome to the Monday Market Update Call
with Nikki and myself.
And, yeah, it is April 14th andwithout further ado, nikki,
I'll let you go.
Speaker 2 (00:15):
Awesome.
Happy Monday everyone and happyalmost tax day.
But I don't know if that's ahappy thing or not, but
regardless of that.
So in the market this morninginterest rates are doing a
little bit of course correctionfrom the events of last week.
So last week after the tariffannouncements were happening, we
were having tons of volatilityfrom an interest rate standpoint
(00:36):
.
I mean we're seeing rates likedown to 5.875, up to eight and a
quarter in a single day andjust a lot of volatility
happening in the marketthroughout the week.
Since the announcement of the90-day suspension or 90-day
delay in the tariffs, we arestarting to see that course
correction happen in theinterest rates.
Now we're down into the lowsevens, maybe the high sixes,
(00:58):
depending on if you want to paypoints or not, but things are
starting to course correct tothe rates that we were seeing
into the mid sixes and we'rehoping that things will kind of
level out from a playing fieldstandpoint.
We can kind of hover in thatmid six range while that
information is, you know,keeping going and wondering.
You know what the tariffs aregoing to actually be and any
other you know announcements ormarket information that could
(01:20):
affect the interest rates.
So the good news is is that weare seeing the course correction
.
Super important that we'repaying attention right now to
what the media is saying andthen helping our clients
understand you know what thereality is, and so that's really
what the concentration is onright now.
Ironically, I have seen a lotof people reaching out to me
wanting to get pre-approvedagain that I hadn't worked with
(01:43):
either in a year or a year and ahalf or so, and so there's been
I think I've got like sixapplications from prior clients
that I hadn't really been in aton of contact with and now
they're wanting to re-engage and, you know, start the
pre-approval process over again.
So it might be a good idea foryou guys to contact people that
you know maybe were a year outor a year ago, that you might
have lost contact with, andre-engage them to see where
(02:05):
they're at from a you knowfeeling standpoint and where
they want to be, also from a youknow on the street standpoint.
Usda or Rural Development madean announcement last week about
changes to their financinginformation that they're willing
to do so.
They historically have notallowed manufacturer homes to be
(02:25):
eligible for rural developmentfinancing.
Now they have actuallycorrected that and they are
allowing manufactured homes forRD or USDA financing.
As a reminder, manufacturedhousing normally requires at
least 5% down, but with ruraldevelopment.
This is a 0% down mortgage.
(02:46):
It is 0% down, it isincome-based, it is for people
living in rural areas and it hasa lower mortgage insurance
amount than you would find on aconventional or an FHA loan most
of the time.
So a lot of really positives tothat program.
But now that they're allowingmanufactured homes, that's an
additional positive.
(03:11):
The other thing I wanted to talkabout is a little nuance with
self-employed borrowers that Ihave actually had to deal with
twice this past week.
So when you have aself-employed borrower and they
are using a Schedule C on theirtax returns or they are an LLC
on their tax returns orsomething of that nature, and
they're switching from thatSchedule C to an S-Corp or a
corporation or some other way oftax filing, from a lending
(03:33):
standpoint they are allowed todo that as long as we have
what's called continuity ofincome.
What continuity of income is ismaking sure that the business
that they had showing on theSchedule C is the same business
as the one that is filed underthe new way of filing.
So whether it's an S-corpcorporation or if they're going
(03:54):
from a corporation down to anS-corp or whatever the change in
filing is.
We need to make sure, as alender, that there's that
continuity of income.
To be clear, the client isallowed to change their business
structure for tax purposes andstill qualify for that mortgage.
We just need to make sure thatif there is a business name
change so in other words, if youjust filed a Schedule C under
(04:16):
your individual name and nowyou're filing an S-Corp under an
LLC or a different name thatthose two businesses are the
same business if there is a namechange and then if identifying
through two years of tax returns, that that is the same business
that has been in existence.
And so really what we look forfrom a lending standpoint is
(04:38):
that continuity of income piece.
It is important not only to tiethe two together, but it's also
important for what we can usefor qualifying income.
So when we have a client who'sbeen self-employed for at least
five years, most of the time wecan use one year of tax returns
for qualified.
If we have a self-employedclient who is self-employed for
less than five years, then weneed two-year average.
(05:00):
That could be very importantfor people who have, let's say,
got a huge increase in theirprofit from their business in
2024 versus 2023, or people thatare changing the structure of
their business.
We need to be able to tie thosetwo together, and so it's
really important that you knowus as lenders, know that up
front and then also can justspeak to the client about how
(05:22):
we're going to set them up froma pre-approval standpoint.
Speaker 1 (05:27):
Absolutely Thank you for that.
And then I just wanted to goback.
So I think that is great thatyou have some clients coming
back.
You said you had six comingback who are kind of on hold.
What, just for all the agentslistening and I definitely agree
, you should always be reachingout Anybody that gives you a
timeline, automatically split itin half and then quarter it and
(05:51):
just continue to stay in frontof them.
But what are exactly thoseconversations or what are they
saying?
Or if you had the top, you knowa couple reasons of why they're
resurfacing.
That will just give the agentslistening a little bit more
inkling of who to really reachout to and what to say.
Speaker 2 (06:09):
Yep.
So anyone that had you knowreally a couple of them were
that they signed a lease and thelease is coming up in three
months.
One of them very creditspecific, that they've been
working on their credit all year.
One of them, you know really,was from 2023 that just randomly
reached back to me and said,hey, I want to try to get
(06:29):
through this process again.
Another one had a job changewhere they were making more
money.
So they're coming back andsaying, ok, now what can we
qualify for?
So all those different lifechanges that have been happening
that are really like jobrelated, credit related, you
know things of that nature.
That's why they're coming back.
You know, oftentimes it's we'rehaving another baby.
Oftentimes it's, you know,we're getting married.
(06:51):
You know things that arechanging life events that, again
, we all talk.
We talk about it all the time.
But just knowing when thosethings are going to happen and
being able to reach back out andnot necessarily talk about
whether or not they're going tobuy a house, but just
congratulate them on the lifeevents and you know, eventually
that helps, helps them toremember you and to reach out to
you when, when they needsomething.
Speaker 1 (07:16):
Absolutely, and I think that that's a perfect,
perfect segue into kind of whatI want to talk about today.
And that's everyone you come incontact with is fighting their
own battle.
Everyone has stuff going on andeveryone has life events coming
up.
So a lot of agents what I'venoticed in coaching and
mentoring them is we get intoour own heads and we make up
(07:38):
these whole stories that youknow why we should call or we
shouldn't call, or what might behappening, or why this person's
ghosting us or why they're notresponding to us.
And so I really Really want tosay it again, especially for the
agents on here that I coachit's us, we're the problem,
(08:00):
you're your only problem andyour only solution.
So it's really getting out ofyour own way and out of your own
head and not making up thestories or the excuses and
letting the doubt creep in as towhy you shouldn't be reaching
out to these people.
And that's why I love all theexamples you gave, nikki,
because things change,circumstances change and what's
(08:22):
our role in you?
As a business owner, anentrepreneur and a real estate
agent, your role is to be top ofmind, and what that means is,
when their hand goes up andthey're ready.
You should be the first name inperson and real estate agent
they think of and if you are not, that's on you.
So it's really important thatyou and I've had with another
(08:46):
agent this morning that's new toeXp and she's blown away by
KVCOR and all of the campaignsand everything that you can
automate so that you having toshow up and make the call or
make the text can be once aquarter.
But what are you doing inbetween that?
What are you sending outnewsletters?
Are you on a holiday drip?
(09:06):
Is there a home anniversary?
Is there a birthday?
Their kids birthdays, theirspouse?
I mean, you can have so manythings in your drip campaign
that are customizable to thatspecific person and it will feel
like it's coming from you.
And if you don't have KB Core,again, technology and AI is off
(09:29):
the charts and it's only gettingbetter.
So whatever CRM you are runningshould have some sort of
capability and we I have.
Yet, honestly, in the hundredsof agents that I've coached and
come in contact with, I don'tthink I've met one yet that has
their data bank.
It's not a database, it's adata bank in order.
(09:51):
Because if you don't have yourdata bank in order and have
these prospects, your peoplethat know you, like you, trust
you, past clients, people, youknow your sphere of influence,
all of it.
If you don't have them in yourdata bank and you have these
campaigns set up and you're outbuying leads, that's you're
(10:11):
stepping over $100 bills to pickup pennies.
It's all there, it's all readyto go.
You just have to tap into it.
So I just wanted to give thatfriendly reminder and, nikki,
exactly what you said.
Six people came back around andI know how you show up and
that's because you showed up andyou were there and when their
hand went up or their lease cameup or they're thinking about
(10:35):
this or had a job switch, theyknew first and foremost to call
you.
Speaker 2 (10:40):
Yeah, that's a lot of stuff that we you know, that we
talk about all the time withyour data bank I'll use that
same term is, you know, a lot oftimes I won't even get a
response for an entire year fromthese clients, or you know
potential prospects or whateverit is, and so when I'm not
getting responses, then I haveto go back and I have to analyze
, like, is this the type ofclient that I want to continue
(11:02):
to pursue, or is this the typeof profile or client that I
really want to be able to dobusiness with?
And that's when you can takeall that, all those people that
you know, and you can start tofunnel them down of people who
just aren't responding, andreally then deciding is this a
person that's ideal for mybusiness, and narrow it down
that way as well.
Speaker 1 (11:25):
Absolutely.
Was there anyone on the callthat wants to come off mute?
Do you have a question forNikki or myself?
Before we wrap it up, I alwayslike to give the people that
show up live the opportunity,all right, well, with that said,
then the recording will be onmy YouTube channel and podcast,
(11:46):
and if you have any needs for agreat lender, reach out to Nikki
.
Coaching and mentorship,regardless of if you're with eXp
or not, reach out to me.
We're here and happy to help inany way at all.
Have a good one everyone.
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