Movement Mortgage 

September 22, 2017

Wait, the CEO of the Mortgage company I am moving to wears a t-shirt to the office??

I am proud to announce I am #MakingTheMove to Movement Mortgage!!! Based in SC, founded in 2008 by cofounders Casey Crawford & Toby Harris! I will be based in Hall Park here in Frisco, TX with my official start date this coming Monday the 25th.

The company is built around rethinking how a mortgage process should work! I can’t wait to share more so stay tuned!!!


Prayers: Harvey, Irma, Jose and 9/11

September 11, 2017

As I thought about what to write today, all I could think about was how my heart goes out to those impacted by the recent hurricanes and who perished during 9/11.  I’d like to ask that we each take a moment every day this week to pray that God may bless and give comfort to all who need it as our country recovers from these tragedies. Prayer is a powerful tool, and united in prayer, I believe we can help make a difference in the lives of everyone involved. And, if your heart calls you to do so, go online and find a way to donate or volunteer in the clean-up efforts. Our former minister now lives in Houston, and I can help connect you to the relief efforts happening down South in you’re interested.

Geoffrey Davis – Mortgage Loan Consultant 

NMLS #206192
First United Bank & Trust

D: 214-529-9622

F: 855-239-6079
6401 S. Custer Rd.

McKinney, TX 75070


Seventh Annual Newman Village “Lemonade Stand”

September 4, 2017

Since we moved to Frisco over 15 years ago, we’ve seen lots of changes. But one thing hasn’t changed and that’s the community’s desire to try to give back and make the world a better place. As the Frisco Mortgage Guy, I love being involved in community outreach because it’s a way to give back all the blessings we’ve been fortunate enough to receive. Yesterday, we participated in the 7th annual Lemonade Stand benefitting “Kids Shouldn’t have Cancer, https://kidsshouldnthavecancer.org/  It was a great event, raising $40,000 for the foundation and increasing awareness around pediatric cancer.

As a sponsor we brought in Flipbooks for the kids, sold cherry limeades, original Davis Family Chex mix, had a Jelly Belly “guess the number” giveaway, a kids coloring station and gave a financial gift as well. Our best-selling item wasn’t a traditional lemonade stand treat, but handmade paper snowflakes made by our precious daughter Libby. She wanted to make a difference too and thought people might need a snowflake on such a hot day. She walked around in the heat with her little bag of snowflakes asking if people would like to buy one to stop kids from having cancer. Our other kiddos worked the booth and took turns walking the crowds with Libby. For me, and my wife Julie, this is an example of how giving to others is actually a gift itself. Watching our kids work hard to make the world a better place is priceless and continues to reinforce our belief in the importance of giving back.

Here are a few stories and photos from the event.

http://cw33.com/2017/09/03/newman-village-lemonade-stand-raises-money-for-kids-shouldnt-have-cancer/

http://lifestylefrisco.com/seventh-annual-newman-village-lemonade-stand/

Geoffrey Davis – Mortgage Loan Consultant 

NMLS #206192
First United Bank & Trust

D: 214-529-9622

F: 855-239-6079
6401 S. Custer Rd.

McKinney, TX 75070


How will ARMs be calculated without LIBOR?

August 28, 2017

A common loan product is the Adjustable Rate Mortgage (ARM) which is a loan product with an interest rate that shifts depending upon what is happening in the broader market.  ARMs have been heavily tied to the LIBOR (London Interbank Offered Rate) which is slated to go away in 2021. Why you might ask? The LIBOR has been the center of a multi-year scandal tied to manipulating LIBOR rates back during the mortgage turmoil of 2007/2008. Since then, it’s been unable to successfully capture the costs of banks borrowing from one another which is how ARM rates are set. At this moment, we don’t know what it will be replaced with but know that we all want something a bit more stable.

Meanwhile, if you’re in an ARM product, you most likely have language in your loan documents saying that if LIBOR should be retired, they will substitute it with another comparable index. I think this would be a short-term answer, while the industry seeks a better indicator to link to ARM products.

Geoffrey Davis – Mortgage Loan Consultant 

NMLS #206192
First United Bank & Trust

D: 214-529-9622

F: 855-239-6079
6401 S. Custer Rd.

McKinney, TX 75070


Thoughts on RedFin

August 14, 2017

With the Redfin IPO, I’d love to get your feedback on how you view Redfin. Will they be a flop like ZipRealty?  Are they going to be able to become a real estate leader? Shoot me your thoughts for a chance to win a $100 Amazon card.

For me, I think they’re going to land somewhere in the middle, similar to what I experience with Quicken as a mortgage lender. There will always be folks who would like a shiny looking Rocket as their mortgage loan officer, but we’re talking about one of people’s most important assets. At the end of the day, you want someone who will get the deal done, a real person no less. Another possibility for Redfin would be to leverage their robust technology and data platform to help local real estate agents grow. They already have agents that stay at their existing brokerage and take their leads–so it’s not too much of a stretch. Only time will tell!

Geoffrey Davis – Mortgage Loan Consultant 

NMLS #206192
First United Bank & Trust

D: 214-529-9622

F: 855-239-6079
6401 S. Custer Rd.

McKinney, TX 75070


Do Loosening Guidelines Herald a Future Collapse?

July 31, 2017

In the lending world, the loosening of Fannie Mae’s underwriting guidelines have people talking as they think back to the 2008 credit/appraisal issues during the last mortgage downfall. The newly released guidelines from Fannie Mae do loosen their stance on certain credit elements including moving their max Debit-to-Income (DTI) ratio up to 50%, lessening income documentation requirements for self-employed and some smaller changes around how different kinds of debts and incomes are treated. Yet, they’re really not anything “new.”  Fannie Mae’s shifts just align its guidelines to that of its brother, Freddie Mac.

That being said, I do see small changes happening across the lending spectrum, that individually aren’t anything to worry about–but in aggregate could result in another mortgage situation if the trend continues. As new loan products are introduced, I would encourage all of us to advocate stable loan options with our clients that help them get into the properties they want without undue financial risk.

Waiting on Rate Shifts….Still Waiting!

There’s been noise for well over a year on bringing up interest rates but we’ve had pretty minimal movement so far. Honestly, with the domestic political environment it’s making it hard to predict what’s going to happen. While the economic data looks good, the markets don’t like it when they cannot make an educated guess around where to put their money. This makes the economic environment unsettled, which in turn makes the Fed hesitant to do anything too bold.  So…we’re still waiting!

Geoffrey Davis – Mortgage Loan Consultant 

NMLS #206192
First United Bank & Trust

D: 214-529-9622

F: 855-239-6079
6401 S. Custer Rd.

McKinney, TX 75070


VA Loan Misconceptions

July 3, 2017

As we near the 4th of July, I often think about our Veterans and their service to our country. Most of you are familiar with the VA Loan product that is available to active/retired military and to others who serve (e.g., Reserves). Many sellers avoid accepting real estate contracts from buyers with VA Loans because the belief it will take longer and the appraisal process will be tougher. Let’s explore that a bit more….

Belief #1: The Process Takes Longer

When I do VA Loans, the process takes the same amount of time as a conventional loan. National “Big Box” banks (e.g., Quicken) seem to take longer from what I hear…typically 45-60 days to close. I’m not sure why it takes them so long as the process is almost identical to conventional loans and VA guidelines are well defined. Long ago, before the days of credit modeling and data analysis, things might have taken longer but not in today’s data driven marketplace. Net-Net: The process doesn’t take any longer if you use the right lender. I close mine in 26-30 days.

Belief #2:  The Appraisal Process is Tougher

From an outsider view, the appraisal guidelines do feel more stringent but not unreasonably so. What I find to be more of an issue is that once someone is approved as a VA Appraiser–it’s feels like a lifetime membership. This is very different from a more traditional bank panel where lenders actively monitor the quality of appraisers and their work. Net-Net: The issues with the appraisals are more centered getting the right appraiser and less about the appraisal standards.

Belief #3: VA Loans have more Seller Fees

There are a couple of specific things that pop up (e.g., pest inspection for things like termites, notary & recording fees) that are VA loan related but these tend to fairly small (Total of $100-300) in the scheme of things. All closing costs are buyer/seller negotiated just like in a conventional loan. Net-Net: The fees are slightly more than conventional loans, but we’re talking about a couple hundred dollars…not a couple thousand.

Have a safe and joyous 4th of July!!

Geoffrey Davis – Mortgage Loan Consultant 

NMLS #206192
First United Bank & Trust

D: 214-529-9622

F: 855-239-6079
6401 S. Custer Rd.

McKinney, TX 75070