The Shoes of the Fisherman

All of us have been dealing with the financial tsunami that shook the financial fiber of America. It certainly buckled our knees in the mortgage industry but what now? If you are reading this then you probably are one of the survivors. Good for you. You have made it this far. It seems its been a lot like crossing a mine field. You may have lost a limb or two but you've made it across.

I am sure we can all agree that the pond is a whole lot smaller and there are fewer fish. But there are also fewer fishermen. So all in all, if you are a survivor, there is opportunity. Oh, not like before, let's be honest. You can't throw a loan against a wall and have it stick like say 2002, 2003, etc. Your borrower must actually qualify; there are guidelines that MUST be followed but, loans are not impossible. There are still fish to be caught but you have to be a better fisherman.

Before (in the recent good ole days) you could throw a hand grenade into the water and the fish would come floating up to you. Not now. Now you need to find their hiding places. You must seek them out and entice them with the things that they find attractive like lower interest rates, better service, fewer fees, paying for closing costs, etc..

The loans will not come walking into your office like they did - you actually have to go out and get them. If you talk to some of the old dogs, like me, they will tell you that the business is a lot like it used to be way back before the 90's. The borrower had to qualify, they had to have good credit, they had to have money enough to close. Not really all that unreasonable when you think of it. That is the way the mortgage lending has always been done except for the recent past (late 90's to 2007). The aberration was the sub prime boom. The norm is more like today.

Originating and closing a loan these days requires some additional work. As the Loan Officer you need to really examine your borrower, look at their documents, work your calculations, provide accurate GFE's, you know, do your job. No more putting together a 1003 and faxing it to a lender and then waiting for a stip list to close. Taking the NMLS course and passing the test was not such a bad idea after all. We need credentials if we are to be thought of as professionals and the NMLS gives us those. The mortgage industry has been demonized so much that having an NMLS number helps restore your credibility. Loan officers also have to learn a word that they are not so used to saying. That is- NO!. Some borrowers are simply not ready to purchase a home. I've always maintained that the next best thing to a fast "yes" is a fast "no". Hit them right between the eyes with the truth, they will thank you and you will keep your hair from turning grey (or falling out) with the stress of trying to fit a square peg in a round hole.

Dealing with the current legislation as well as the current Washington, D.C. climate can be a daunting task but take heart my brothers (and sisters), there is still business out there and offering great service at reasonable prices trumps sub-prime loans programs and further, offering great service will always keep you fed even in this business.

Happy fishing!

-OFS