FHA Raising Rates!! and Building an Inclusive Business
FHA Raises Rates!
Effective April 18th, FHA is raising the monthly mortgage insurance rates...again...from the current .90 to 1.15, a quarter of a point.
For many years, and prior to 2009, the monthly MI rate was at .55 points. Here is what all of this means. The government in a little over one year has doubled the monthly MI premium. This effects primarily the first time home buyers and puts thousands across the nation out of the housing market because of FHA.
Secondly and for example, on a $150,000 loan amount, The monthly MI insurance has gone from $68.75 per month to the current $112.50 per month. With the new rate increase the monthly premium will be $143.75 - over a 109% increase in less than two years.
The government screwed up in the past and is passing on their incompetence to the first time homebuyer, further eliminating many qualified families from purchasing their home! I can't figure out how this is suppose to better the economy but hey, time to get off my pedestal.
Bottom line is if you have any potential buyers...NOW is the time to call me, get them qualified and into their home before the rate spikes.
Building an Inclusive Business Part I
As our world becomes increasingly diverse, the ability to create a more inclusive workplace becomes even more important. There are and will be more people from ever diverse backgrounds working together. Differences in race, religion, age, marital status, sexual orientation, ethnicity, education, work styles are but a few differences we have to deal with and become aware of. And a major mistake of small businesses is to hire family and friends to work for them...people with similar backgrounds and beliefs.
It is proven that companies with a more diverse workforce will produce greater results. The diversity of the workforce creates more ideas, more quantity of diverse ideas. Quantity doesn't always equate to more quality but by the law of numbers the more ideas you can put out the more the chances of the more quality ideas to choose from.
Also, a more diverse workforce will give you more ideas "outside the box". Again, too often, you have people of similar backgrounds trying to create something different or a greater market share by reacting to what the competitor is doing! A diverse workforce gives you access to fresh ideas from people of different; race, professional backgrounds, ages, geographic backgrounds, generations, religions, ethnicities, etc.
It's opening up to new possibilities and new possibilities equal better business and ultimately an increase in the bottom line.
Jim Hostler Senior Mortgage Loan Consultant
Lenders Direct a division of Gateway Business Bank