While making small talk with a twenty something hair stylist just before Christmas, the subject of my occupation came up. Trying to explain lenderama to someone outside of the mortgage industry is difficult for me to accomplish with any semblance of brevity. I started out with, “Well, I used to be a Mortgage Broker…” But before I could advance any farther, a cynical look crossed the face of this girl while interrupting, “Yea, weren’t we all”. I went on to explain that I actually entered the mortgage industry when it was hard to get in. I had to know how to use an HP12C and fill out GFE’s by hand.
The whole conversation made me feel old, but there’s more to it. As news of layoffs come from all around, it’s worth remembering that just over a year ago, companies were still rampantly hiring just about anyone with a heartbeat to meet demand. This girl was a hair stylist, turned mortgage broker, turned hair stylist again, all before she looked old enough to order a martini.
I didn’t say it to her face, but I’m glad she’s gone. There were way to many people that entered our industry in the last two or three years who had no business being here. When times got tough, they ran. I think the reputation and health of our industry is better off without them.
Attending the CMLA trade show yesterday, the crowd looked decisively older than in the past few years. Familiar faces ruled the day. I caught up with people I’ve known for more than ten years. My custom cards for the show were a big hit. But there’s more to the card then I mentioned. The back side features the follow text
“I don’t know about you, but the idea of flipping burgers of digging ditches does not appeal to me. I think I’m going to stick with what I’m good at. I hope you’ll join me.”
I followed it up with some information about lenderama and brainious. The above is lenderama’s mantra for 2008. Yea, lenders are falling like flies, programs are disappearing, and regulations threaten very existence of the mortgage broker business model. So what? I’m a mortgage guy. I’m not going to let a little thing like Armageddon discourage me.
“I’m not going to let a little thing like Armageddon discourage me.”
Profound post, Todd!
BTW, in the battle of Armageddon, the good guys win…
I’m with you, Todd!
“I had to know how to use an HP12C and fill out GFE’s by hand.”
TIL’s too. I was viewed as a “magician” by new originators when I cranked it out, with the trusty HP, and was within 5bps on the APR.
I knew I liked you, Todd, now I know why.
“Attending the CMLA trade show yesterday, the crowd looked decisively older than in the past few years”
Whoa! I saw that, last month, at the CAMB show here in San Diego. 2-3 guys were actually wearing ties and had their hair combed.
It felt…so…professional. There’s actually hope.
Well, this is my very favorite Todd Carpenter post.
I thought about it, and I think there is NOTHING I’d rather be doing than this job in this place at this time.
If I can double my business…without going into Scott Tucker Territory…
I’m in the right spot.
My doors are open and I hope to serve!
My biggest challenge is finding a value add or niche to attract potential clients. For the last four years I had been working as an account executive. I left retail in 2003 and my last retail funding was also in 2003. I opened the doors of HT Schoem Mortgage in June of 2007. I did so as I was witnessing my broker base not making the adjustment to the new environment. There were still loans to be done in June 2007. I knew if I wanted access to them I had to go get them myself. Poor timing to be sure as in late July to early Aug the market place changed dramatically.
The banks, (last game in town) continue to close wholesale operations or offer programs via their retail divisions not offered to the MBB. The fact that I do not have a past client base to tap into has become the hurdle I can’t seem to clear. I have 11 years experience so I’m not living the, “stylist,” story.
I feel I must now look for alternative income sources. I will stay open to serve those I may assist via my personal scope of influence. Sadly I do think mortgage will play a lesser role when it comes to my professional endeavors.
We all know wholesale will return again, once a recovery begins and the banks realize that market share is at stake. Then again they will reach out to the MBB community. I am not being a downer and I understand that there are shops that continue to, “survive.” I just have to evaluate the situation as it pertains to my timing and position in the market place. This blog is rich in experienced professionals sharing knowledge. Any helpful comments are welcomed!
No, man. There are STILL deals to be done.
email me @ chris@tendayteam.com, and I’ll give you my 1 page marketing plan that I developed for the forthcoming new market survival guide.com.
My goal is to be DONE by 1pm and fund 1.5-2m/month.
As one who could easily bow out of the business and survive (since I fly for a living too), this is truly on great post. Why? I love two jobs and I do both with no intention of stopping either, no matter what lies ahead.
To analgize from a pilot’s perspective, what if I entered windshear and just gave up? Not only would I die, but hundreds of others. For many doing mortgages, the analogy fits as if you give up what you love and you are doing justice for the client, it may not be just you who suffers.
(Notice I said “many doing mortgages” as there are some I wish would quit the business as they are not “professionals”)
So, stand firm, adapt, and grow stronger in 2008.