English language

How to pronounce adjustments in English?

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hi loan officer academy participants
thanks for being here today we're going
to go over our module of reading a rate
sheet and we're going to do a couple of
examples one fha one conventional
and um
again joe gernabach mountain west
financial one of your coaches in the
academy so let's go ahead and get
started
okay so
just some general information first then
we'll then we'll actually look at the
rate sheet
always remember to look at the right
rate sheet as your is your loan a
government loan is a conventional loan
you need to be looking at the right rate
sheet to get the right answers okay
and then
the most important thing and i'm going
to summarize this at the end
but you need to look at your adjustments
first
you need to do a line by line item
adjustment for your scenario
add up all your adjustments that that
answer may end up being
a cost which is a positive number or a
credit rebate
which is a negative number usually shown
in parentheses or with a minus sign in
front of it once you have your total
adjustments then you go to your pricing
grid
and price your loan according to what
the question is asking you to answer or
according to what your client is looking
for as far as the rate they're
requesting or the amount of points
they're willing to pay or not pay okay
hopefully as we go along that makes more
sense
okay so our scenario today
is going to be
a four hundred thousand dollar purchase
price
sale price
okay the first scenario we're going to
do is fha
so what do we do with an fha loan we
take four hundred thousand dollars times
ninety six and a half percent to get our
base loan amount that answers three
hundred and eighty six thousand dollars
our base loan amount
then we add the upfront financed
mortgage insurance premium which is 1.75
and we've given you uh grids and charts
and everything to
answer with these things i'm saying or
go along with these things i'm saying
so i'm not taking the time to show you
the math
on how to calculate a maximum fha loan
amount here because we've done that
elsewhere and will continue to
throughout the course
okay so when you add
the upfront mortgage insurance to the
386 base loan amount you get a total
loan amount of 392.
755. 392 755
on an fha loan
maximum financed
okay so what we're going to do first
angela if you could slide up we're going
to go down to the adjustments grid
before we look at that pricing grid
okay a little bit right there okay
government adjustments hopefully
everybody can see that
and
on this particular scenario
we have a 659 fico 659.
so
if you look over there
on the left under government adjustments
you see fha va
okay and if you slide down
to
fico you're going to see
that the 659 fico which is the one two
third one down
has a
one point adjustment a 1.0
cost adjustment off to the right there
okay so
on a piece of paper
mark that down 1.0 adjustment for
fico okay
let's let's go line by line see if
there's any other adjustments
uh first one there says loan amount
under 75 000. that does not apply
the second one there loan them up
between
75.001 and 125 000. that does not apply
the third one
loan amount 325 to the
conforming limit
does apply because our loan amount i
remember the base 386 total 392.755.
so we have another adjustment there
of 0.125
rebate remember if it's in parentheses
it's a rebate or a credit okay
so again going line by line va doesn't
apply va loan amount doesn't apply va
purchase does not apply
the other ficos don't apply because we
already picked the one that does apply
manufactured home does not apply
fha high balance does not apply
so let's look at the other adjustments
state adjusters if you're in one of
those other states then you would you
know look to
use one of those adjustments as well
we're assuming these all our scenarios
are in california so no adjustment there
applies
this the grid below that fha streamline
we're not doing a streamline this is an
fha purchase
off to the right usda this is not a usda
this is an fha
purchase not a usda loan
we're not extending the lock period so
no additional lock period cost so now we
have our two adjustments we have a 1.0
cost we have a 0.125
credit or rebate so when you add those
together
you're going to have one point
and you're going to subtract the credit
or rebate
so that's
0.0.125 so the answer is 0.875
cost
okay since the cost was the larger
number that's the one that's going to
prevail in the answer so
0.875 cost
and the questions throughout later when
you're doing your pricing modules
or quizzes or tests or what have you are
going to ask you price the loan as close
to par
as possible
and your answer could be
a
credit rebate or a cost and when i say
credit rebate that's the same thing okay
if it is a credit rebate we ask you to
express the answer in parentheses if
it's a cost you don't use parentheses
okay
but when we say price
alone as close to par as possible
we've gone over that but let's go over
it again
close to par means it's close to zero
points meaning no cost no credit no
rebate okay just as close to zero points
as possible
and more times than not
we're not going to have a rate that gets
you
to exactly
zero points or par so that's why we say
closest to
and again in the scenarios you're going
to see later we're going to ask you to
price it as closest to par
your resulting answer could be a cost or
it could be a rebate but whatever the
answer is it needs to be the one closest
to zero points or par pricing
if it is a cost rebate we do ask you to
put it in parentheses so we know that
you know that it's a credit or rebate
versus a cost which would not use
parentheses
okay
so now that we have our
adjustments of 0.875 we're going to go
back up top on this rate sheet
we're going to go to that pricing grid
at the top left
okay and we know we're on the right rate
sheet it says government standard
products and then the heading in that
grid says fha va 30-year fixed we're
going to assume 30-year fixed on all of
our loan scenarios
okay so
right there
we're going to use that grid so let's
slide down we're going to find the one
offset that offsets
closest to
the
0.875 cost that offsets that to get us
closest to zero points
okay and the answer should be
2.25 percent i don't know angela can you
highlight that in a light color so we
can see through it that blue seems to be
a little dark i don't know if you have
yellow or something else
that we could actually see through it
and if that'll
help or not yeah that does help thank
you let's use the yellow okay so 2.25
percent
interest rate
and it shows there are 0.761
rebate
okay but if we add to that
our adjustments and our adjustments were
0.875
cost so we have a 0.761
rebate or credit
plus the 0.875 cost so a negative number
plus the positive number
the higher
number
the number with the larger
amount is going to prevail which in this
case will be the cost so we're going to
end up with a
0.114
cost
okay so the answer would be closest to
par rate would be 2.25 percent
after we put our adjustments and look at
the pricing grid as we are now
add them together we get
0.114 cost okay hopefully that makes
sense
we're going to do a conventional example
using the same scenario
okay so that's the government one
and we're going to now
go look at the
conventional
uh price sheet
which is should be right below here
perfect okay and you can see the pricing
grid
in the upper left that okay this is the
jumbo one let's not use this one let's
see if we have the conventional one
we're not going to do any jumbo examples
today
okay there's there's conventional
perfect
okay so what we're going to do here
remember that pricing grid is the upper
left corner okay but we're not going
there right now we're going to look at
our adjustments first
always always always adjustments first
so we're going to slide down right there
stop there okay conventional adjustments
okay now using the same scenario 400 000
sale price 96.5 i'm sorry not 96.5
that's the fha but on this one we're
going to do a 20 down
uh which should tell you what 20 percent
down should tell you no
no mortgage insurance no pmi private
mortgage insurance because they're
putting 20 percent down if there's less
than that you need mortgage insurance
okay so with 20 down on a 400 000
purchase price our loan amount would be
320 000
okay but remember we have a 659 fico
we're using from the same example we
used in fha okay so now we're going to
go to that conventional adjustment and
angela can you highlight that in yellow
thank you very much okay prints a little
bit small there but hopefully you guys
can read it it's showing that
for a loan to value
um
six well actually that first grid kind
of loaned the values across and then
fico scores up and down but the 659
fico
uh
is highlighted there then you come
across to 80 percent
and that's going to give you a bump of
three points pretty big bump
okay
pretty big uh price adjustment a lot
bigger than the fha loan
okay but that's our pricing adjustment
for
the fico lt the unload of value so the
credit score and the loan to value
gets us on that grid to 3.0 so write
that down on a piece of paper that's
your one of your adjustments
and then what we're going to do is we're
going to go over to the right
and it shows other adjustments
we're assuming that there's impounds on
all of our loans for taxes and insurance
so that wouldn't apply
this is not a one to four unit non-owner
occupy that would not apply
it's not a two three or four unit
non-owner occupied so none of those are
going to apply it's not two units it's
not
um any of those with with the units but
if we keep sliding down i probably
should have said on the earlier example
and i didn't it's a condo this property
is a condo so it's not a single family
residence it's a condo
and we're going to assume for any condo
example scenarios that you see
throughout the course that is it is an
attached condo okay
so there is a bump there for an attached
condo but read the rest of it attached
condo
that is
above 75
loan to value
and above 15-year term
okay and that does apply here because
remember we're using 30-year term and
we're doing an 80 loan so we have
another adjustment there of
0.75
okay so two two pretty good adjustments
the three plus the zero point seven five
let's continue in that grid it's not a
manufactured home
it's not they don't have seven to ten
finance properties and it's not a second
home
okay so
we should have all of our adjustments if
we add them together the 3.0 and the
0.75
that gives us
3.75 total adjustments
let's now go back up to the pricing grid
itself
okay right there in the upper left side
30-year f conventional
and it's uh we're all using all 30-day
rate locks
30-year fixed loans okay so what we need
to do
is find a rate that shows
a rebate
close to that
3.75 cost for the adjustments
so that when they offset each other
we're getting the loan as close to par
pricing as close to zero point
pricing as possible okay
so in this scenario
i believe the 3.25
interest rate three point two five
percent on the far left right there
uh interest rate
yeah the the right there okay and that
shows a 3.928
rebate
or credit because it's in parentheses
okay so that parentheses credit rebate
is going to offset our cost so when we
add those two together
the higher number prevails and i know
this is in parentheses but at the 3.928
is a higher number than 3.75 so our
prevailing answer or result is going to
be a cost or credit in parentheses so
when we add the 3.75 cost
remember for our fico loan to value
and our attached condo adjustments
we're going to end up
with
a
0.178
credit or rebate
so again
you have your 3.75 cost added to your
3.928 rebate your result is
0.178 in parentheses
rebate or credit okay
i hope that makes sense you're welcome
to re-listen to this module as many
times as you'd like
or refer back to it
you know as you go further through the
course
to better understand how to read a rate
sheet okay so that's two examples
the um
fha and the conventional
okay so now let's look at our takeaways
uh angela do you have that
screenshot of our takeaways
and always always remember
um
here comes
perfect okay our key take away points
here
number one
identify what type of loan am i doing is
it is it
when i say government that means fha or
va
uh
when i say and then or is it
conventional or is it jumbo i didn't
show you the jumbo rate sheet
we don't have any jumbo
scenarios uh throughout the course but
just know jumbo is is over and above con
conventional
and high conforming loan limits
okay that's number one number two always
use the applicable rate sheet once
you've identified
is it fha is it conventional make sure
you're using the right rate sheet
identify your loan scenario
again tying in with the two things we
just said above
always always always begin pricing with
the adjustment boxes
okay
if you start with the pricing grid
you're going to get the answer wrong if
you start with the pricing adjustments
and go line by line does this apply yes
add it does this apply yes add it when i
say added it could be a negative number
or a positive just put the negative
numbers in parentheses so you know that
that's a credit or rebate add up all
your adjustments
then go look at that applicable rate box
up in the upper left corner
and then price according to the client
or the scenario request in this instance
throughout loan officer academy you're
going to be
answering what the question is asking
you whether it's a module a quiz a test
you know but in the real world you know
we're going to be pricing it according
to what our client is looking for
because they may be you know i want to
buy the rate down uh without paying a
couple of points okay then go to the
rate that has a couple of points
uh including your adjustments and and
get them that rate
or to show them two or three rates okay
or you may have somebody that's really
short cash they don't have the money to
buy the rate down any further
and they could actually use help with
some of their closing costs getting paid
with a credit or rebate so maybe you
show them a little bit higher rate but
now the sudden you know the creditor
rebates picking up you know one or two
thousand or more of their closing costs
so
knowing how to do that can make the
difference between
making a transaction work versus
not making it work so
hopefully you find that helpful remember
in real world mountain west financial
loan officers have access to a tool
called price my loan it's an auto pricer
we can literally put in you know certain
information and the computer will will
price it for us
and show us what
loan types the customer may be eligible
for so a lot of that stuff is
automatically done in the real loan
officer world
we're not quite there yet we're
still in loan officer academy world so
and even even if you
had access to the automatic stuff
it's good to know how to do this
manually so you kind of know what's
happening behind the scenes
um that some of this stuff uh has
adjustments and why it does you know you
have a lower credit score that's a
higher risk loan you have a higher
credit score that's a lower risk loan
you're putting more money down that's a
lower risk loan all these things factor
in to the pricing of a loan and
hopefully
you'll either have already listened to
by now or will be listening to soon
the interview
that i did with our pricing department
renee and
hopefully this kind of supplements or
enhances
that interview and the information you
picked up from that okay
thanks a lot i will talk to you soon
look forward to the next check-in thank
you

hi loan officer academy participants

Toggle Transcript

adjustment::noun | Spocien Dictionary

adjustment

noun

/ə'dʒəstmənt/

the act of making something different (as e.g. the size of a garment)

Type	Words
Synonyms	alteration, modification
Type of	change
Has types	accommodation, loosening, laxation, tightening, tune, adaptation
Derivation	adjust

adjustment::noun | Spocien Dictionary

adjustment

noun

/ə'dʒəstmənt/

an amount added or deducted on the basis of qualifying circumstances

Type	Words
Synonyms	allowance
Type of	recompense
Has types	depreciation allowance, seasonal adjustment, deduction, tare, cost-of-living allowance, discount
Derivation	adjust

adjustment::noun | Spocien Dictionary

adjustment

noun

/ə'dʒəstmənt/

the process of adapting to something (such as environmental conditions)

Type	Words
Synonyms	adaptation, adaption
Type of	organic process, biological process
Has types	differentiation, domestication, acclimatization, specialisation, specialization, acclimation, acclimatisation, dedifferentiation
Derivation	adjust

adjustment::noun | Spocien Dictionary

adjustment

noun

/ə'dʒəstmənt/

the act of adjusting something to match a standard

Type	Words
Synonyms	readjustment, registration
Type of	standardization, calibration, standardisation
Has types	synchronization, synchronizing, temperament, tune-up, alignment, collimation, voicing, synchronisation, synchronising
Derivation	adjust

adjustment::noun | Spocien Dictionary

adjustment

noun

/ə'dʒəstmənt/

making or becoming suitable; adjusting to circumstances

Type	Words
Synonyms	accommodation, fitting
Type of	improvement, advance, betterment
Has types	readjustment, habituation, domestication, shakedown
Derivation	adjust

Examples of adjustments

adjustments

Inevitably, economic realities and adjustments bring markets back down to earth.

From the sacbee.com

Among those ideas were more frequent rate adjustments and a bigger reserve fund.

From the thenewstribune.com

Food companies in recent weeks have announced they would make price adjustments.

From the denverpost.com

Labor contracts typically provided cost-of-living adjustments tied to inflation.

From the freep.com

Structural adjustments like cutting Government programs and services, and taxes?

From the economist.com

It's well-coached and these guys will be well-prepared and make the adjustments.

From the stltoday.com

It's an ongoing project that requires regular updates and adjustments over time.

From the forbes.com

Brooks says that since it is a first they will be making some adjustments to it.

From the nzherald.co.nz

Analyzes equiptment failures, determines cause, and makes necessary adjustments.

From the jobview.monster.com

More examples

Making or becoming suitable; adjusting to circumstances
Alteration: the act of making something different (as e.g. the size of a garment)
The act of adjusting something to match a standard
Adaptation: the process of adapting to something (such as environmental conditions)
Allowance: an amount added or deducted on the basis of qualifying circumstances; "an allowance for profit"
(adjust) alter or regulate so as to achieve accuracy or conform to a standard; "Adjust the clock, please"; "correct the alignment of the front wheels"
In law, the term adjustment may appear in varied contexts, as a synonym for terms with unrelated definitions: Adjust: quoting BALLENTINE'S LAW DICTIONARY Copyright (c) 1969 Lexis Law Publishing, a division of Reed Elsevier, plc. #. ...
A small change; a minor correction; a modification; The behavioural process of balancing conflicting needs, or needs against obstacles in the environment
(adjust) To modify; To improve or rectify; To settle an insurance claim

How to pronounce adjustments in English?

adjustment::noun | Spocien Dictionary

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