Author: Abby Vaquerano

What’s in a rate?

December 31, 2020

As we find ourselves beginning a new year, our loan officers continue to be asked why different mortgage rates exist for different borrowers. We believe that it is important for you to understand the reasons, and they have nothing to do with politics!

It really comes down to the perceived underlying risk on that loan. The subject property and the borrower will always have unique characteristics, but even identical scenarios will be priced differently by different lenders. For every borrower, thousands of different banks, lenders, and credit unions compete with one another to offer the lowest rate and/or the best customer service and product.

You can think of it as the higher the risk of default, the higher the mortgage rate. Banks and lenders start with a base interest “par” rate and then raise or lower it based on the specific home loan criteria. Other mortgage lenders make many assumptions when advertising rates, and particular loan scenarios may be quite different than the hypothetical. First Community Mortgage loan officers discuss your scenario with you in order to best understand the rate and price for you. There are loan pricing adjustments for things like loan amount (conforming or jumbo), documentation (full, bank statements, etc.), credit score, occupancy (primary, vacation, investment), state, loan purpose (purchase or refinance), debt-to-income ratio, property type (single-family home, condo, multi-unit) and LTV or CLTV. And more!

An individual purchasing a single-family home with a conforming loan amount, a 20% down payment, and an 800 FICO score is going to qualify for a different rate than the individual requesting cash-out on a three-unit investment property with a 650 FICO. And again, rates will vary from lender to lender, because different lenders want different loans in their portfolio to hold onto or sell into the secondary market, meeting investor appetite. This is why it’s important for borrowers to understand how risky their particular loan is, and the different rates and products for which they can qualify.

First Community Mortgage firmly believes that we can offer you the best combination or product, pricing, and service, and thousands upon thousands of our borrowers agree. Ask one of our loan officers… we will work with you to determine the best combination for your unique situation.

FCM Cares awards TCAT’s Gordon Scholarship

December 19, 2020

FCM Cares, First Community Mortgage’s nonprofit, has awarded the annual J.C. Gordon Scholarship to five Tennessee College of Applied Technology (TCAT) students at a scholarship ceremony recently held on the TCAT-Shelbyville campus.

The awarded funds will be used in part to purchase tools for each student recipient. FCM Cares provides TCAT with $7,500 annually for the J.C. Gordon Scholarship. The funds are then administered by TCAT leaders to different students each trimester based on instructor feedback.

The five students selected as recipients of this trimester’s J.C. Gordon Scholarship are: James J. Patton, Kevin Turner, William Dykes, Alex Gordon and Joshua Tate Alexander.

“Thank you to First Community Bank, FCM Cares, and especially the Gordon family for this generous donation that will benefit our Machine Tool Technology students,” said TCAT-Shelbyville President Laura Monk.

FCM Cares awards the J.C. Gordon Scholarship, on behalf of the family, to five students each trimester in memory of local tradesman, businessman and community leader, J.C. Gordon. Gordon was one of the founders of First Community Mortgage and sat on the company’s original board.

Gordon for years helped train TCAT students through an internship program at his company, WEGO Precision Machine. Since 2017, the J.C. Gordon Scholarship has been awarded to 60 TCAT students.

“Receiving this scholarship validates my decision to go to vocational school,” said recipient James Patton. “I would like to thank FCM Cares for helping me and my classmates with our education. It means a lot.”

View original press release here: https://www.t-g.com/story/2854571.html

First Community Mortgage adds 20-year mortgage veteran Toby Foster to their correspondent team.

December 17, 2020

By Candyd Mendoza – Mortgage Professional America

Toby Foster has come onboard to bolster the growth of its correspondent lending division.

As a correspondent account manager, Foster will work with FCM’s correspondent lender partners across the country, with an initial focus on the Southeast.

Foster has spent the last two decades building partner relationships in the retail, wholesale, and correspondent space. From 2016 to 2017, he served as president of the Mortgage Bankers Association of Georgia. Foster has also held various roles at several big firms, including Acopia Home Loans, Franklin American Mortgage, SunTrust Mortgage, and Well Fargo Home Mortgage.

“Toby has a special affinity for correspondent lending, which makes him a great liaison to our partners in that space,” said Dan Smith, president of First Community Mortgage. “His enthusiasm and excellence in the correspondent space is a great match for our dedication and continued growth in that area.”

“First Community Mortgage’s leadership has the same passion for correspondent lending that I do, so joining this organization is a terrific fit,” Foster said. “FCM is large enough to provide my correspondent partners with important basics like competitive pricing, but not so big that execution and delivery are in any way sacrificed. We’re committed to forming true partnerships, efficiently purchasing saleable mortgage loans.”

First Community Mortgage reported that it is on track to originate over $3 billion mortgages this year.

View original press release here: https://www.mpamag.com/news/first-community-mortgage-makes-correspondent-hire-242231.aspx

Rickey Moore joins First Community Mortgage as VP of LOS

November 23, 2020

First Community Mortgage (FCM) has named Rickey Moore Vice President of Loan Origination System Solutions. He has greater than a decade of expertise within the mortgage industry and technology-based strategies.

“Rickey has extensive experience in loan operations systems, having built multi-channel systems from the ground up,” says Dan Smith, President of First Community Mortgage. “His keen perspective and highly specialized skills come to our team at an optimal time in our growth and expansion.”

Smith says the impact of Moore’s work will be felt by business partners, real estate agents and customers through reduced costs and reduced turn or processing times, among other ways. “All told, investing in technology reduces loan costs, improves efficiency and leads to a smoother borrower experience, and that’s vital to both our mortgage pros and, ultimately, the people they serve,” he notes.

Moore is based in FCM’s Atlanta office in the city’s Buckhead financial district. In this role Moore is responsible for the Encompass Loan Origination System, including its architecture, and continually advancing the company’s Loan Origination System to be even more user-friendly and efficient. 

“First Community Mortgage invests in its people and technology, which makes it a great fit for me,” Moore says. “I look forward to being part of the vigorous growth and innovation that continues to foster its team members and efficiently serve its customers and partners.”

Moore holds a Bachelor of Science in Computer and Info Sciences from Clark Atlanta University , in addition to Lean Six Sigma certification by way of the University of Georgia. He additionally holds Ellie Mae Encompass Administrator credentials, in addition to CompTIA A+ certification.

Antonio Roundtree Hired As VP of Community Engagement.

November 13, 2020

First Community Mortgage (FCM) has named Antonio Roundtree Vice President of Community Engagement.

“We are excited to welcome Antonio in this new role, responsible for increasing lending activities, promoting homebuyer and financial education programs, and community outreach efforts across communities we serve,” says Keith Canter, CEO of First Community Mortgage. “In this strategic role Antonio will help us meet the needs of historically underserved communities – by leading our efforts to provide affordable housing products, resources, tools and events that help build generational wealth, championing diversity and inclusion improvement, furthering the reach of our Multi-Cultural Lending Initiative Division, and facilitating more relationships and growth of our retail division.”

Roundtree (NLMS # 93875) has worked in banking, last focusing on Rutherford County, Nashville and extending to Knoxville. He attended Austin Peay University, majoring in Criminal Justice, and served in the U.S. Army as an Engineer. Away from work he enjoys teaching youth at church events, including coaching them on employment preparation. Roundtree’s hobbies include gardening, home improvement, fitness and muscle cars.

“Serving and fostering the community is one of the main pillars of First Community Mortgage’s mission, and I am proud to join the team, focusing on traditionally underserved markets,” Roundtree says. “It’s exciting to launch our Community Development Initiative, the primary tool toward intentional engagement, providing communities with relevant assistance, educational and financial services to generate more homeownership opportunities.”

First Community Mortgage, Inc. is a wholly owned subsidiary of First Community Bank of Tennessee, and includes Wholesale, Correspondent and Retail divisions. FCM is a FNMA, FHLMC, and GNMA seller/servicer and offers mortgage solutions to consumers and financial institutions. It is on track to fund over $3 billion in home loans in 2020. First Community Mortgage is an Equal Housing Lender, NMLS ID 629700. www.FirstCommunityMortgage.com

Homeowners are Enjoying the Ride

November 6, 2020

We are happy and proud that so many First Community Mortgage customers have either become homeowners or have saved money on their monthly payments with our help. And we pride ourselves at helping clients even after the loan funds, either through accepting referrals, answering servicing questions, or continuing to educate them about market conditions. With that in mind, we answer the question: Why are house prices going up in 2020? There are three basic reasons.

The first reason is the demand for housing. Few don’t want to own their own home, regardless of age. Millennials (those born between 1981 and 1996) are the key buyer group, representing about 40% of all home sales. There’s still more potential in this group, however, given that the homeownership rate for those under 35 years old is roughly 40% compared with 64% for adults aged 35 to 44 years old. As younger folks marry and start families, the demand for homes will continue to grow, and we have some great first-time home buyer programs.

FCM is always helping Gen Xers (those born between 1960 and 1980) and Baby Boomers (1940 to 1960) who are facing life stage and lifestyle changes related to COVID-19, retirement, and age that also bode well for future housing demand.

The second key reason for the increase is because the very low mortgage rates. With rates so low at FCM, many consumers are enjoying the affordability of a mortgage. Our 30-year fixed rates have remained near or below 3% for some months now. Unfortunately, this is due to the hard times that the economy is experiencing due to the pandemic. The Federal Reserve have expressed the desire to keep the federal funds rate near zero through 2023. The federal funds rate is not equal to mortgage rates because of credit risk, but they do move in tandem. This continues to be a boost for the market.

As builders serving in our communities see high demand, many have raised the price of newly constructed homes. Lower mortgage rates help offset home price growth for now, but that may not last forever.

Lastly, people are using their home like never before. It’s not uncommon for families who now use their homes as their office, gym, school, bar, and restaurant! And for many, a one or two-bedroom home is not enough. Many of our clients have moved to the suburbs, a trend that is expected to continue as buyers continue looking for homes that meet their evolving needs.

In addition to demographics, low mortgage rates, and an increased reliance on our homes, the increase in prices is also helped by a decent stock market and healthy home equity are among the other positives fueling demand. There’s no shortage of economic risks today, however, including a slowing or backsliding economy with accompanying job losses, a continued delay in getting more stimulus passed, or the impact of winter on COVID-19 cases and business profitability.

On a global scale, however, these demographics are not going away and will drive the housing market for the next 10 years, and First Community Mortgage is here to help you.