At least that’s what you’d think while reading a lot of the latest news, blogs, and forum posts about the mortgage industry lately. I’ve been thinking to much about blog building, and not enough about mortgages. So I spent the last hour or so skimming through the Internet in search of ideas for a mortgage related topic. What a mistake. Doom and gloom from a lot of professionals who’s perspective is that 7% loans are “high rates”. Memo to mortgage professionals who’s careers started post 9/11;
Most homeowners in today’s market have had a 7% or maybe even an 8%+ loan in their past, and I’m not talking twenty years ago either. You are likely more freaked out about this then they are.If May foreclosures DOUBLED in your state, that likely means they went from something like .2% of all loans, to .4%. It’s bad, but jeez, a little perspective is in order.
Most homeowners have good credit. If half your loans are for clients with sub 600 credit scores, then half your clients are in the bottom 15% of all borrowers. Think about that.
Stated Income loans are not the most popular type of loan originated. Neither are Option ARMs, or sub prime loans, or 100% financing.
Take a deep breath people, if you are running out of loans for your clients, the solution is to go out and look for better clients, not magic loan programs. Those days are over.
Amen to that brother!
I’m so tired of hearing the sky is falling! Tightening credit; how about normalizing credit?
I’m advising my clients who are thinking about buying to do so! What are you waiting for; the mainstream media to tell you it’s all better? If you do that you’ve missed the boat. Sure there may be a bit more value bleeding; so what? The cycle will run it’s course; it’s not a case of IF it’s a case of WHEN. The daze of the overnight real estate investment professionals are done; no more flippers. If you plan on living in the home 7 – 10 years; get’r done.
great point!
“Doom and gloom from a lot of professionals who’s perspective is that 7% loans are “high rates”. Memo to mortgage professionals who’s careers started post 9/11″
I read somewhere that most LOs have not been in the business for more than 5-7 years. That would put them in the post 9/11 arena.
people just need to do a little work on their credit and then they are good to go.
great point!
“Doom and gloom from a lot of professionals who's perspective is that 7% loans are “high rates”. Memo to mortgage professionals who's careers started post 9/11″
I read somewhere that most LOs have not been in the business for more than 5-7 years. That would put them in the post 9/11 arena.
people just need to do a little work on their credit and then they are good to go.