J.R.'s Mortgage and Real Estate Blog

No No's for Realtors on Facebook

1st Metropolitan Mortgage — Wed, 29 Jul 2009 19:17:43 -0500

I see it all of the time. I'm somewhere teaching a class of realtors about social media. One of them will come up to me afterward and say, "Could you take a look at my Facebook page?" I am usually quite happy to oblige. I open up their page and "Yikes!" While Facebook is a great tool, it should be noted that it is not a "traditional" selling tool. Let's take a look at some common mistakes.

1) "The hard sell"-Constantly asking for referrals, pushing your services and generally trying to shove real estate as the solution to every problem and question is annoying. You'll get yourself de-friended quick for this one.

2) "Real Estate is my life"-Yeah, we know because you won't ever shut up about it. I had a buddy of mine once who loved working out and lifting weights. That's great, but it's all the guy ever talked about. Everyone wanted to choke him after about 15 minutes. Social media is just that. Social. Get it? Talk about or even better ask about something other than real estate. People will appreciate the interest you have in them.

3) "Listings, listings and more listings"- Hey guys, this isn't the Sunday paper. You're not paying for these. Don't put every listing you have on your Facebook page. If people really wanted to see listings they would look them up on the internet.

4) "What? I need to give something of value?"- You better believe it. In social networking it is actually expected that you are there to actively participate and, yes, to give. The referrals correlate directly with the amount of credibility and trust you create by showing you are willing to give unselfishly.

So take a minute to review what you're doing on your social media platforms. Better yet, have another realtor or associate take a look and give you an honest assessment. You might be surprised at how you're coming across to someone else.

Homeowners, Confused by the Mortgage Market? NOW is the time to take action!

1st Metropolitan Mortgage — Thu, 02 Apr 2009 08:33:42 -0500

It is amazing to me the amount of confusion that abounds among homeowners as of late. Should I refinance or wait? Did my home go down in value? Should I pay off credit cards? Will I have a job tomorrow? What steps will the government take (or not take) to help out homeowners? With all of the talk in the media of this new program and that new program, bailouts, sour markets and consumer confidence in the tank; it's no wonder everyone is suffering from a little "analysis paralysis". There is just too much info.

I understand this, but the only thing you can control is your action.

First, don't count on the government doing a whole lot to help. They may be well intentioned, but their programs usually aren't feasible and rarely work. FHA Secure and the Hope program were both supposed to help around 500,000 homeowners each, but both died quick deaths. The guidelines to qualify were difficult, if not impossible, to meet.

Should you refinance?

Well, if you plan on staying in your home for at least 5 years, you probably should at least take a look. Don't assume you know what your credit looks like or if you qualify. The mortgage market has changed dramatically even in the last 6 months. Call your loan officer and talk to him or her. After all the rates are below 5% for a 30 year fixed rate. It would be crazy not to take a look and won't cost you anything to have a qualified individual give you a mortgage analysis.

Create a cash reserve

Now is the time to be socking money away. If you do refinance with a lower payment; consider putting the money you would have sent to your lender in a savings account. Look for little ways to cut costs. Let's face it. A lot of people are losing jobs right now and money in the bank is, well......... money in the bank.

If you have a home equity line you may have noticed the minimum monthly payment going down. Take a look at what your payment was a year ago and continue "paying" that every month. Simply take your monthly equity line payment now, subtract it from what you were paying a year ago and put the difference in a savings account.

Pay down debt

Now is a great time to negotiate lower rates and maybe even close some of those extra cards. Did you know you can close a credit card and negotiate the rate down to less than 5%? I did it with a Bank of America card I had. Boy, does the balance go down fast when the interest rate is low! Know something else? The less you owe on credit cards in relation to your credit line; the better your credit score is! It shows the creditor you are responsible with credit, even if it is available to you.

Last, but not least, update your resume

Hey, nobody likes to talk about it, but the reality is that talented people with education and skills and experience are losing their jobs every day. That's not a dig on them. Companies simply have to cut costs to survive. Having that resume fresh and ready to go certainly helps you mentally to cope with both the possibility and the realty of it if it happens.

So make a plan! Take control! You'll feel so much better and you'll be better prepared to handle this downturn and be that much smarter and confident when it turns around.

Credit Crunch, Real or Imagined?

1st Metropolitan Mortgage — Wed, 18 Mar 2009 09:22:19 -0500

I continue to hear terms like "frozen markets" and "credit crunch" on the various media outlets. While I understand the fear in the market, is it really that bad or just a lot of hype?

It seems that every other day my business partner and I are having this discussion. The question we always come back to is, "Are we denying credit to anyone now that we would have approved a year or more ago?"

Well, let's have a look. If you have a 543 middle score with no money down; I can't get you a loan. Guess what? A year ago I couldn't get you one under those circumstances either. No real change.

And speaking of credit score; an FHA loan was possible with a score of 580 a year or so ago. Now lenders want a 600 or sometimes a 620 score to get it done. Is that a "credit crunch"? I don't think so. It's higher, but not significantly so.

Of course, you have the stated income loans, no-docs and no income verification loans that have gone bye-bye, but as a percentage of the overall market, unless you lived in California or Florida those weren't as prevalent as most people believed. Most of our loans were and always have been your standard "conforming" fixed rate loans.

And speaking of those conventional, conforming loans; how difficult are they to acquire? Used to be that a score of 720 would get you the best rate available. Now you need at least a 740 for that. A loan of 95% with a 5% down payment would also keep you in conforming land, but most lenders are limiting that to 90% loan-to-value. It's an additional 5% down, but that's not going to stop someone with good income and credit from buying a home. Again, not much of a difference.

Is 100% financing gone? For the most part yes, however you can still obtain a USDA loan or a VA loan at 100% if you were a veteran. Down payment assistance bit the dust back in October so you can no longer obtain an FHA loan with no money down. You can however get a gift from a family member for your down payment effectively still making it a 100% financing deal.

These things altogether do show a bit of a tightening in the credit markets, but certainly not a "frozen market" or "credit crunch". The markets are actually moving back to the place they were 10-15 years ago when a more prudent and realistic approach to lending money was the rule, not the exception. It's not the wild west of lending anymore like it was 2-3 years ago, but finding a loan is hardly impossible.

Charlotte Mortgage Market Coming out of the Recession?

1st Metropolitan Mortgage — Thu, 12 Mar 2009 18:23:10 -0500

Take a look at the Charlotte Business Journal today. http://www.bizjournals.com/charlotte/stories/2009/03/09/daily36.html Foreclosures in North Carolina according to Realty Trac are down by 50% from the same time last year!

There actually is a ton of positive news out there this week. The stock market is up over 500 points this week. Companies are actually announcing that they are hiring again. Locally are we starting to come out of this recession? This thing has already lasted longer at the end of April than any other recession we've had since World War II. What about you guys in other parts of the country? What are you seeing out there?

Are You Ready for Some Good Economic News?

1st Metropolitan Mortgage — Wed, 04 Mar 2009 20:31:34 -0600

I know you've all been deluged with a huge amount of bad news regarding the financial markets. The mortgage market is just one of them. I recently found a website that is a fantastic source of upbeat information regarding the economy. One could get the idea very quickly from reading the articles that the majority of the good news is not being reported by major media outlets. The website is www.positiveeconomicnews.com.

I would encourage all of you to not only take a look at it, but to actually use the information given and pass it around to your friends, family, co-workers and customers. It paints a very different view of what is going on than you hear from in the major media outlets.

So take minute to go to the website and take a look. I can guarantee your spirits and hopes will be lifted. Remember, the market is as much about perception as reality and right now we need all of the positive perception we can get.

Rates are dropping! Will you use that information to gain business?

1st Metropolitan Mortgage — Tue, 09 Dec 2008 10:39:51 -0600

Here is an article from this morning's Charlotte Observer. http://www.charlotteobserver.com/597/story/402351.html

It talks to a Wachovia economist who states that "Interest rates haven't been this low for a sustained period of time in the past decade".

So how can you capitalize on this in your business?

1) Get into your database. Call every fence-sitter and looky-loo you have and show them this article.

2) Do a direct mail piece to your past customer list. Postcards are great. Needs to only be informational. They won't necessarily need your services right now, but the average person has direct knowledge of 2-3 real estate transactions per year. You need to be top of mind.

3) Get an e-mail piece together regarding the same thing. Copy this link. The average Joe out there has no clue what is happening, but he's starting to due to the fact that the media won't shut up about the Treasury department trying to get mortgage rates on purchases down to 4.5%.

4) Blog it! Put it on your website. Offer a special promotion if they act by the end of the year. Put a time frame on it to get them moving. You want to get it online or in your blog with pertinent key words so you can up the organic traffic to your site.

Take a look at this and don't wait. The time to act is now.

Happy hunting!

Will Consumer Confidence Save this Economy?

1st Metropolitan Mortgage — Thu, 04 Dec 2008 09:39:34 -0600

Reuters reported today that online retail spending rose 15 percent on the Monday after Thanksgiving from a year earlier. Sounds pretty good doesn't it? Take a look at the link here. http://www.reuters.com/article/internetNews/idUSTRE4B25Q220081203It seems that online spending reached $846 million on Monday. It was the second heaviest online spending day ever.

Everyone who knows me knows that I have always said that consumer confidence is the only thing that will save this economy. It is actually the only thing keeping the economy down right now.

Think about it. What is depressing the stock market right now? Are stocks inherently less valuable than they were a year ago? You could argue that some of them are due to sales forecasts and revenues being lower than were expected, but that is still a function of consumer confidence and the consumers willingness to purchase the product. However, the physical assets of the companies are still in place. The plants, equipment, raw materials, labor force and real estate owned by these companies are all still in place. They have not been diminished in the least. Sure there are some issues regarding some companies' goodwill and reputation, but the physical assets still physically remain. Get it?

The question still remains... just what will jump start the economy?

Well, falling gas prices will help. Keep in mind that retail sales, both in-store and online are probably being positively affected by the drop in gas prices. A recent article in the Kansas City Star computes that the average 2 car family is saving about $200 per month compared to last July. Where do you think a significant portion of that savings is going this year? I would say Christmas. The drop in fuel prices will also save money for those people this winter who rely on heating oil and natural gas to warm their homes. This will further ease pressure on those pocketbooks.

There is something else. Food and staple products we use every day aren't dropping as we'd like. There are 2 important reasons for this. Number one, diesel is the fuel of choice in large trucks that transport these products. Although it is cheaper, it hasn't fallen at the rapid rate we've seen in unleaded gasoline, but it is lower and will continue to fall. Number two, fertilizer is petroleum based and many of the products on the shelves including, (can you believe it?) disposable diapers are petroleum based as well. These products were made well in advance of them being on the shelves and were made with previously more expensive oil-based products. You should expect the first items you see coming down in price to be the items that are daily delivered, perishable and don't use petroleum products. (eggs, milk and fresh produce)

Let's take a look at some other things. How about housing? It has suddenly become more affordable for many people to become homeowners. In Southern California existing home sales are up 65% since last year. What happened? Housing prices dropped. You had a huge pent-up demand of people who thought they were doomed to be lifelong renters. Slash 25-30% off the price and suddenly it's the after Thanksgiving Black Friday housing event of a lifetime. Many areas of the country are experiencing this and consumers are responding.

And how about mortgage rates? We quoted 5.5% on a 30 year fixed rate mortgage last week. When was the last time rates were that low?

These are all very positive signs and by themselves would probably be enough to get consumers spending again, but for one thing; unemployment. Unemployment is hanging around 6.5%. Some economists are predicting it could get as high as 8.5%, but as my old man used to say, "If you laid all the economists in the world end-to-end, they still couldn't reach a conclusion." Nobody is going to accurately predict that number. That being said, I believe that as job growth improves in certain areas of the country, you will see localized consumer confidence improve.

And what will be the effect of all of this government meddling? Government bailouts unfortunately will only allow bad companies to continue to stay in business and lose our money. I don't really see the government as much of a savior in all of this, only a hindrance as they won't help existing business create more jobs by doing the one thing they can actually help with, which is lowering taxes. The best we can hope for out of the government is that they don't screw up the natural selection process. The market is very good at creating better products, lowering prices, creating new jobs and getting rid of unprofitable industries that consumers don't want if left alone.

My prediction? A good spring due to overall lower costs in the marketplace for areas with relatively low unemployment. Consumer confidence will surge amoung those with stable employment and will improve as more jobs are created. It's all about the consumer feeling good about the future. It always has been. (by the way, consumer confidence was up in November! A harbinger of things to come?)

How are you feeling about the market?

1st Metropolitan Mortgage — Thu, 20 Nov 2008 09:12:31 -0600

Just wanted to put this out there...... How is everyone feeling about the market?

* Positive
* Concerned but optimistic
* Just plain concerned
* I don't know what to think
* I'm preparing for the worst while loading up on ammunition and canned goods

I'm still concerned but optimistic. I personally believe that the spring is going to bring a pretty solid turnaround, at least in our area. (Charlotte, NC) What about some of the rest of you around the country? What's your take on all of this?

Believe it or not, the market is functioning as it should

1st Metropolitan Mortgage — Tue, 30 Sep 2008 08:09:28 -0500

All right now...... Take a deep breath..... let it out...........relax................. Ahhhh!!!! Feel better?

I know, I know. There's blood in the streets. Everyone is waiting for the (gasp!) next Great Depression! The bailout bill won't pass! The stock market is tumbling! And you and everyone around you is in a panic. Relax......................

All right now. Let's start at the top. I am absolutely shocked at the absolute lack of faith we are seeing here in the minds of the public regarding the financial markets. I am NOT shocked at the amount of lies and downright stupid statements I'm hearing on a daily basis. Most people wouldn't know a corporate balance sheet from a biscuit. Now guys, I know I have a business degree and that means I have taken classes in economics, accounting and business management, but it don't take no GED to figure out that this isn't the fall of Western civilization as you know it. I don't even bother listening to some brain dead reporter or TV anchor when they begin to enlighten me on the economy with their wealth of economics training. (by the way, I'm being sarcastic. Most reporters have college degrees in English or journalism. How that qualifies you to have an intelligent opinion on the economy is beyond me)

Now I know that everyone thinks the government should step in and save us all (although they created the problem by choosing to ignore accounting irregularities at Fannie Mae back in 2004) ,but let's take a look at what has happened in the banking business in the last week.....

-Bank of America bought the assets of Merrill Lynch

-JP Morgan Chase bought the assets of Washington Mutual

-Citimortgage announced yesterday that it is buying the assets of Wachovia

Well, will you look at that?!?!?! The government didn't have a thing to do with those things occurring! It is a natural process of the market righting itself! Guess what? Some companies will go out of business and some other companies who are stronger and made better choices will swoop in and get a good deal. THAT'S HOW BUSINESS WORKS! It's working!

However, because everyone is screaming for the government to do something and because it is an election year; you can believe we will have some sort of "bailout" plan finalized by the end of this week. The stock market will settle down and the sales of beer and hard liquor will drop precipitously. (another bad joke) The federal reserve today committed today to boost the amount of 84-day cash loans available to U.S. banks. The Fed is increasing the amount to $75 billion, up from the current $25 billion starting on Oct. 6. That move will triple the supply of 84-day loans to $225 billion, from $75 billion. They also committed to doubling the amount of money available to all of the central banks to $620 billion up from $290 billion. This will let everyone feel good about that fact that there will be money to lend and thereby loosen credit restrictions. (in theory)

All in all, you can't forget where we are in the middle of right now. We are in the dead center of an election cycle. Everybody is going to sling mud until election day to meet their own needs and spin it to their benefit. Don't forget that we could have prevented all of this by tightening up on Fannie Mae back in 2004 when accounting irregularities came up, but Rep. Barney Frank who was the Financial Services Committee ranking member told investigators that, "I didn't see anything in your report that raises safety and soundness problems" (of Fannie Mae) Hey, you don't have to believe me. Look it up yourself on the archives of CSPAN. It was ignored, but you won't hear Barney Frank talking about it now, in fact, he hopes you don't know about it.

Take everything you hear right now with a grain of salt. My take is this:

•1) "Bailout" plan will be in place this week. (these guys can't go campaign for re-election until they get it ironed out or the public will kill ‘em) It won't be the one they originally intended. It will probably be for a lot less money and be contingent on a lot more oversight, but the market will feel better, because the average Joe doesn't really understand the mortgage market anyway. He just wants to know it's business as usual. It helps him sleep at night.

•2) Markets will settle down with that news. Fed pumping money into the banking system will loosen credit restrictions beginning Oct. 6^th.

•3) After the election November 4^th, you can expect a HUGE drop in the amount of talk about the economy. You ain't gonna believe it. It won't make political fodder any more so the majority of politicians will shut up about it and the American people will stop having it shoved down their throats, thereby reducing the panic.

•4) Consolidation of banks will continue further stabilizing the industry eliminating the weak by pairing them with the strong.

O.K., feeling better? You should. The system is working as it should. The weak die off and the strong survive ultimately making this economy stronger. Fortunately for those of us in the Charlotte market; we live in a very stable part of the country with regards to housing, jobs and the economy as a whole. So, take heart and congratulations! You're still here! Take steps now to position yourself for the turnaround, because it is coming and when it does........... those who are still in the game are going to reap the rewards. I think I'll stick this one out! How about you?

Positive Attitudes

1st Metropolitan Mortgage — Wed, 30 Jul 2008 10:02:14 -0500

For the last year or so, there has been "blood in the streets". What do I mean by that? Most of you who are still in the business are here, because you've gutted it out. You've made the necessary steps in cutting staff, minimizing costs and sticking with the basics. The "what works" approach with very little extra fluff due to the fact that there isn't time or money to do otherwise.

I was at a seminar on Friday of last week and had the opportunity to talk to a realtor that I've done some business with over the years and he told me that if it didn't get better for him within 3 months; he was going to find another job. You've all heard it from your colleagues. Poor, poor pitiful me at every turn and it's easy to fall into that rut. We are essentially pessimistic creatures.

I turned around midway through the seminar to find this realtor friend of mine gone. He just gave up. Quit. Finito. Done. My question for you is...... when are you going to quit? When is it too much for you? Are you done?

This, my friends, is what we call a market correction. It stinks. I hate it. You hate it. Our families hate it. It's not fun, but, now listen to me here...... this is where fortunes are made. What? Are you kidding me? Actually I'm not. This is where you truly find out what you're made of. This is where you build your business, improve your processes and solidify your market. This is also where you can improve your mental processes. I'm talking about attitude.

Let me tell you. There is no better time to get your mind right than right now. I'm talking about engaging in positive affirmations, reading uplifting books, meditating and learning to "think right". I know it's tough. I know you don't want to do it. I know that depression lurks around every corner, but what's your plan when this market turns around? Is your attitude still going to be at the mercy of the market or WILL YOU DECIDE THAT YOUR ATTITUDE, NOT YOUR APTITUDE DETERMINES YOUR ALTITUDE?

Cut off the TV. Stop watching the TV and reading the news. Remember the old newspaper saying, "if it bleeds, it leads." There is no good news you are going to get from the boob tube or the newspaper right now. It won't sell newspapers, so it ain't getting printed my friend. Get some audio books by Zig Ziglar, Tony Robbins, Dr. Steven J. Covey, Brian Tracey and Dr. Wayne Dyer. Take a look at positive affirmation training. It sounds corny, but it works. Their are tons of self-hypnosis tapes out there. There are books. There's positive reinforcement through meditation. Avoid the negative like the plague and reinforce the positive. Internalize your belief through these methods that you can make it. Crazy? Maybe, but Henry Ford went bankrupt twice before he got Ford Motor Company off of the ground and the Wright Brothers made trips to North Carolina for 23 years before their plane actually flew.

Remember, "if you do what others will not do, you will have what others do not have." I don't know who said that, but it's a clear indicator of what we must do. Now is the time that winners are made.

Lease-to-Own this beautiful 4BR/3BA all-brick home at less than market price!

1st Metropolitan Mortgage — Wed, 26 Mar 2008 15:47:18 -0500

Lease-to-own this fantastic 4 BR/3 BA all-brick home on 1 acre of land. Thehome is located approximately 5 minutes from the new Research campus in Kannapolis. Property values will soon be skyrocketing in the area! Lease is available for only $1999 per month. I will apply $300 per month toward the purchase price which is $329,900. The option is only $2500 which can also be applied toward the purchase price. This home is a great deal! Homes in this neighborhood sell for up to $430,000! I built this house personally 5 years ago. It is immaculate! Over 3100 square feet with a 2 car garage and a porch that runs the length of the house. All appliances stay. Huge bonus room! Call for FREE recorded information at 1-888-786-9516 ext. 58 today! Realtors call me directly at 704-791-4917 for selling incentives on this property!

Rent-to-Own this Charlotte Area 4BR/3BA all-brick home below market price!

1st Metropolitan Mortgage — Wed, 26 Mar 2008 15:22:26 -0500

Lease-to-own this fantastic 4 BR/3 BA all-brick home on 1 acre of land. The home is located approximately 5 minutes from the new Research campus in Kannapolis and 2 minutes away from the Davis Love designed Lodge at Irish Creek golf course. Property values will soon be skyrocketing in the area! Lease is available for only $1999 per month. I will apply $300 per month toward the purchase price which is $329,900. The option is only $2500 which can also be applied toward the purchase price. This home is a great deal! Homes in this neighborhood sell for up to $430,000! I built this house personally 5 years ago. It is immaculate! Over 3100 square feet with a 2 car garage and a porch that runs the length of the house. All appliances stay. Huge bonus room! Call for FREE recorded information at 1-888-786-9516 ext. 58 today!

Why Aren't Mortgage Rates Dropping?

1st Metropolitan Mortgage — Fri, 21 Mar 2008 12:35:06 -0500

I've had a lot of questions here lately regarding mortgage rates; where they are going, why they are moving up or down, how the Fed rate cuts are affecting them, etc. It seems there is a lot of misinformation out there that we need to clear up, sooooo....... here it is; a basic economics lesson on mortgage rates!

First, let's get one thing straight. What does the Fed cutting the Federal Funds rate have to do with mortgage rates? Don't know? ALMOST NOTHING! So why do we hear so much about it? Because it's news!

Journalists have to have something to write about. That's it. CNN is on 24 hours a day. They have to fill up all of that dead air with something. Let me put this another way.... the folks covering these stories are writers! They don't know diddly-squat about the markets or economics or much about business at all unless it has to do with selling newspapers or getting the ratings up on TV. I don't know... maybe because of the the fact that I have a business degree causes me to be more acutely annoyed when I hear someone talking about the economy when they actually don't have a clue.

And just what is this "Federal Funds rate"? According to Wikipedia, "In the United States, the federal funds rate is the interest rate at which private depository institutions (mostly banks) lend balances (federal funds) at the Federal Reserve to other depository institutions, usually overnight."

Notice it says, "overnight"? How in the world can anyone assume that an interest rate on an overnight loan could be compared TO YOUR 30 YEAR FIXED RATE MORTGAGE?!?!?!

What does affect the interest rates? It is affected somewhat by indicators in the economy such as employment, manufacturing output and consumer confidence, but these are only symptoms of the true cause.... the confidence of investors who are buying mortgages. You see, banks loan money, package it and resell it to investors. This is the secondary mortgage market. Two things are affecting it right now. Foreclosures and a drop in housing values.

As of late these investors have lost their zest for mortgages. Banks are forced to sell them off "on sale" or at a discount. If you sell something at a discount to an investor, you have to charge the borrower more by way of interest rates in order to maintain profits. The long and short of it is this..... investors don't feel good about buying mortgage backed securities and insist on paying less for them, because they are riskier, I don't care how many times the Fed cuts the rate. I don't care how much money the Fed pumps into the system. Mortgage rates will not drop until investors start buying these things again.

You can thank the media for blowing this thing up beyond all meaningful or logical conclusions. It's consumer confidence baby! And it just ain't there.

Nehemiah is Still Here!

1st Metropolitan Mortgage — Tue, 04 Mar 2008 09:48:09 -0600

Don't know how many of your customers use the Nehemiah program, but all of us licensed to do FHA loans were sweatin' it just a little. For those of you who don't know; the Nehemiah program was in use to provide down payment assistance money (3%) for FHA insured mortgages. These mortgages in Mecklenburg county and surrounding areas were up to $220,470. That's a pretty good house no matter how you slice it. Anyway, this is an excerpt from a letter I received yesterday from Scott Syphax, the president and CEO of Nehemiah.

"Judge Lawrence K. Karlton of the United States District Court for the Eastern District of California upheld Nehemiah's motion for summary judgment. The Court Clerk's Office is directed to enter judgment and close the case.

To be clear, the U.S. Department of Housing and Urban Development's (HUD) rule to ban private downpayment assistance as proposed in the "Standards for Mortgagor's Investment in Mortgaged Property" regulation published October 1, 2007, is permanently set aside."

This is huge guys. The Senate is working on FHA reform legislation in the coming weeks that will determine the future of FHA loans. This is vitally important as it will help to provide a cushion and pick up some of the folks that might have qualified for sub-prime loans in the past, but now have fewer options. I've been doing FHA loans for 5 years and can tell you that the default rate on them is nil. The interest rates are pretty much the same as a conforming loan. They provide a great way to finance those buyers of yours that have limited or no credit or are first-time home-buyers.

Help yourselves out by contacting your senators and expressing support for down payment assistance programs such as Nehemiah. The more customers we can put into solid loan programs that won't default at good interest rates, the happier these folks are going to be, the more homes you are going to be able to sell and the more happy referrals we are going to receive from satisfied customers.

How's Your Attitude?

1st Metropolitan Mortgage — Sun, 14 Oct 2007 15:36:23 -0500

Everybody is panicking. The market is hosed. Nobody will be in business next week. The sky is falling!

How's your attitude? Are you the "glass half empty" or the "glass half full" type of person? Are you increasing your marketing, trying new things and getting yourself and your business ready for the turnaround or are you curled up in some corner of your office in the fetal position?

We've been using some of our down time (yes, we actually have some although business is still pretty good) to review our performance this year and plan for both our business and marketing for the last quarter as well as the new year. I firmly believe that both agents and loan officers who plan and focus their marketing and sales efforts, instead of using the shotgun approach, will be the ones who survive and thrive throughout our little turmoil here.

So tell me, all of my Active Rain friends, tell me what you are doing to improve your business RIGHT NOW? Tell me how you feel about the market and the future. And tell me; will you PLAN to be here tomorrow or will you just allow the market to decide your future, instead of you deciding?

Hey Agents! What Have I Gotta Do?

1st Metropolitan Mortgage — Tue, 09 Oct 2007 20:55:51 -0500

This one is for all of my real estate agents out there who I "court" every day for their business. Yes, you! You know it's you I'm talking about. I'm curious. What exactly do I have to do to get your business?

I'm serious! And I'm not talking about bringing you donuts and coffee to your meetings. I'm surprised there are any more skinny agents left with all of the food I see at your agent meetings in the mornings, and how about those new community luncheons and open houses? I sometimes think people become agents so they don't have to purchase food.

Now, don't get me wrong, I love you guys and I have a core group of roughly 20-25 agents who send me business pretty regularly. They like my service, know I give a fair price and that there won't be a lot of drama in the transaction. They regularly refer and I refer business to them as well. Those aren't the ones. I'm talking about the ones who agree to send you business and then.......... well, I don't exactly know what happens.

I have a pretty good system to get noticed with Realtors. I don't have much problem getting into offices due to the fact that I have a good marketing system set up and I usually can get someone to recommend me who has done business with me before. I've always built my business and reputation around good agents, so I'm pretty much a Realtor's best advocate. I've told customers that they shouldn't buy or sell a house without a good agent and I've never thrown a Realtor "under the bus", but how do I keep them motivated after I've met with them and sold them on how great I am?

I have no problem getting into the office and no problem getting them to commit to using my services. I send them my weekly e-mail and a hard copy letter referencing some tip or something useful every two weeks, which basically means I touch them 84 times per year, so it's not as if I'm out of sight, out of mind.

Is there something "magical" I can do? Is there some phrase or language that will get them to commit and actually recommend me to someone? Real estate agents! I have a question. What did the lender or broker you use now do to attract your attention? What steps did he or she take to gain your trust? And don't give me the old, "he needs to provide good service, good rates, get the loan closed on time, blah, blah, blah". I know all that. We do all of that. What do we need to do to get you to try us once so that you'll be so blown away by everything we do that you'll never go anywhere else?

I would love to hear some honest opinions on this.

Home Office or Commericial Space?

1st Metropolitan Mortgage — Tue, 02 Oct 2007 20:16:49 -0500

A little over a year ago we made the move to commercial office space. I had been in a home office for several years and wanted the visability and a place to meet clients that wasn't offered in a home office setting.

Sure, a home office did offer a number of advantages; ability to work at any time, very little overhead and a tax deduction, but it had a number of drawbacks as well. Let's look at the pros and cons.

Pros to a home office:

Cheap, no rent
No dress code
No commute
No one is looking over your shoulder

Cons to a home office:

Familiar surroundings may cause you to become distracted doing "home things"
Need to be more disciplined. No one to watch over your shoulder. The responsibility is yours.
Feeling "out of touch" due to lack of contact with other workers
Interruptions of time from kids, spouse or other priorities from home not normally addressed in the workplace.
Inability to "let go" of work tasks, because you're never far away.
More difficult to arrange meetings and have clients "drop by the office"

Obviously, having a home office isn't for everyone. Flexibility is key. We wanted to have clients stop by to meet us to talk about their loan situations and that wasn't going to be possible in a home office enviornment. You simply need to determine what is most important to you and what kind of image you're looking to project.

What's in a Loan? 5 Things to Know When Comparing Scenarios

1st Metropolitan Mortgage — Sat, 29 Sep 2007 15:13:38 -0500

Once you are satisfied that you are working with a top-quality professional mortgage adviser, here are the rules and secrets you must know to "shop" effectively.

First, IF IT SEEMS TO GOOD TO BE TRUE, IT PROBABLY IS. But you didn't really need us to tell you that, did you? Mortgage money and interest rates all come from the same places, and if something sounds really unbelievable, better ask a few more questions and find the hook. Is there a prepayment penalty? If the rate seems incredible, are there extra fees? What is the length of the lock-in? If fees are discounted, is it built into a higher interest rate?

Second, YOU GET WHAT YOU PAY FOR. If you are looking for the cheapest deal out there, understand that you are placing a hugely important process into the hands of the lowest bidder. Best case, expect very little advice, experience and personal service. Worst case, expect that you may not close at all. All too often, you don't know until it's too late that cheapest isn't BEST. But if you want the cheapest quote - head on out to the Internet, and we wish you good luck. Just remember that if you've heard any horror stories from family members, friends or coworkers about missed closing dates, or big surprise changes at the last minute on interest rate or costs...these are often due to working with discount or internet lenders who may have a serious lack of experience. Most importantly, remember that the cheapest rate on the wrong strategy can cost you thousands more in the long run. This is the largest financial transaction most people will make in their lifetime.

Third, MAKE CORRECT COMPARISONS. When looking at estimates, don't simply look at the bottom line. You absolutely must compare lender fees to lender fees, as these are the only ones that the lender controls. And make sure lender fees are not "hidden" down amongst the title or state fees. A lender is responsible for quoting other fees involved with a mortgage loan, but since they are third party fees - they are often under-quoted up front by a lender to make their bottom line appear lower, since they know that many consumers are not educated to NOT simply look at the bottom line! APR? Easily manipulated as well, and worthless as a tool of comparison.

Fourth, UNDERSTAND THAT INTEREST RATES AND CLOSING COSTS GO HAND IN HAND. This means that you can have any interest rate that you want - but you may pay more in costs if the rate is lower than the norm. On the other hand, you can pay discounted fees, reduced fees, or even no fees at all - but understand that this comes at the expense of a higher interest rate. Either of these balances might be right for you, or perhaps somewhere in between. It all depends on what your financial goals are. A professional lender will be able to offer the best advice and options in terms of the balance between interest rate and closing costs that correctly fits your personal goals.

Fifth, UNDERSTAND THAT INTEREST RATES CAN CHANGE DAILY, EVEN HOURLY. This means that if you are comparing lender rates and fees - this is a moving target on an hourly basis. For example, if you have two lenders that you just can't decide between and want a quote from each - you must get this quote at the exact same time on the exact same day with the exact same terms or it will not be an accurate comparison. You also must know the length of the lock you are looking for, since longer rate locks typically have slightly higher rates.

Again, our advice to you is to be smart. Ask questions. Get answers.

Four Questions to Ask Your Loan Officer

1st Metropolitan Mortgage — Sat, 29 Sep 2007 14:47:44 -0500

First: make sure you are working with an experienced, professional loan officer. (I prefer mortgage adviser, after all, mortgages don't occur in a vacuum and many other factors must be considered) The largest financial transaction of your life is far too important to place into the hands of someone who is not capable of advising you properly and troubleshooting the issues that may arise along the way. But how can you tell?

Here are FOUR SIMPLE QUESTIONS YOUR ADVISER ABSOLUTELY MUST BE ABLE TO ANSWER CORRECTLY. IF THEY DO NOT KNOW THE ANSWERS...RUN...DON'T WALK... RUN...TO AN ADVISER THAT DOES!

1) What are mortgage interest rates based on? (The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. DO NOT work with an adviserr who has their eyes on the wrong indicators.)

2) What is the next Economic Report or event that could cause interest rate movement? (A professional adviser will have this at their fingertips. For an up-to-date calendar of weekly economic reports and events that may cause rates to fluctuate, e-mail us at jrfinger@1stmetro.net to request a copy of our weekly newsletter, let us know if you want to be added to my weekly distribution list)

3) When Bernanke and the Fed "change rates", what does this mean... and what impact does this have on mortgage interest rates? (The answer may surprise you. When the Fed makes a move, they can change a rate called the "Fed Funds Rate" or "Discount Rate". These are both very short- term rates that impact credit cards, Home Equity credit lines, auto loans and the like. On the day of the Fed move, Mortgage rates most often will actually move in the opposite direction as the Fed change. This is due to the dynamics within the financial markets in response to inflation. For more information and explanation, just give us a call).

4) Do you have access to live, real time, mortgage bond quotes? (If an adviserr cannot explain how Mortgage Bonds and interest rates are moving in real time and warn you in advance of a costly intra-day price change, you are talking with someone who is still reading yesterday's newspaper, and probably not a professional with whom to entrust your home mortgage financing. Would you work with a stockbroker who is only able to grab yesterday's paper to tell you how a stock traded yesterday, but had no idea what the movement looks like at the present time and what market conditions could cause changes in the near future? No way!)

Be smart... Ask questions... Get answers!

More than likely, this is one of the largest and most important financial transactions you will ever make. You might do this only four or five times in your entire life... but we do this every single day. Don't trust your future to poor planning.

Never Ending Referrals with the Customers You Already Have

1st Metropolitan Mortgage — Fri, 28 Sep 2007 20:38:07 -0500

It's amazing to me that a lot of real estate agents ignore a potential goldmine for new business. (and one that is virtually limitless)I'm talking about referrals from current clients. Everybody hates to ask, but what is a better referral source than someone who is actively buying or selling a home? These folks are the perfect lead sources for several reasons:

They are actively in the process of buying or selling and have it on there minds constantly. This means they will be talking about it to everyone they know.
You have their undivided attention. Contact is being made with them almost daily, which lends itself to many opportunities to, "pop the question."
They are your biggest advocate while you're working with them and everything about you and the on-going experience is fresh in their minds.

But how do you broach the subject? I use a script much like this one. Keep it mind that my script deals with mortgages, but would work with agents as well. It goes like this:

"Hi, ______________. This is J.R. calling from __________________________. We wanted to thank you for doing business with _______________________. As you know, we really appreciate your business. We like to focus our time on working with our existing clients so that those customers are incredibly happy. The only way we can afford to do that is by asking you to help us find more customers. Ms. Borrower, who do you know who might benefit from meeting with me to discuss buying or selling their home in the next 3-6 months?

Think about it. If you average just 1 referral every time you do this, (and many times we receive 2 or 3) you will drastically improve your customer base, thereby providing "never ending referrals." It may be tough to do at first, but with practice I guarantee you will see a marked improvement in your sales and customer base.

NEWS FLASH! You Can Still Get a Mortgage in America!

1st Metropolitan Mortgage — Mon, 24 Sep 2007 09:14:49 -0500

I know, I know. You wouldn't believe it by watching the news that there are any more lenders in America. Everybody is going out of business. It's all gloom and doom! The sky is falling! The sky is falling! (to quote Chicken Little) Well, guess what? It just ain't so!

Keep in mind; bad news sells. The news media would never write a story about a boy scout helping a little old lady across the street, but have him hit her over the head and steal her purse and they'll be interviewing his kindergarten teacher, his neighbors, check with the state to see if he's ever received mental health treatment and bring in an endless parade of psychologists, legal experts, expert witnesses, law enforcement officials and Nancy Grace to provide unending coverage until your eyes glaze over and brain activity ceases.

First off, remember that sub-prime loans weren't all about having bad credit. The more accurate term is non-conforming loans. It was no-documentation loans, stated income loans and jumbo loans (over $417,000). If you have a customer who is full documentation (can prove income), puts at least 5% down and is under a $417,000 loan amount; NOTHING HAS CHANGED. Even if you have to do a stated income or no-documentation loan; they still exist. They just may require a higher credit score.

Secondly, and I had this conversation with my partner, Dave, last week. We aren't turning down many more loans than we would have six months or a year ago. Sure, there are those who are "on the bubble" around the 580-620 credit score that are more difficult to do now, but we have a tool we use in conjunction with our credit bureau that allows us to show a customer how to raise their score by 30-50 points within 30 days. The couple or individual needs to have a little cash to pay down some debt, but in many cases that tool allows us to act as if the "credit crunch" never happened.

Now, we did lose approximately 100 lenders nationally, (ouch!) but the big secret is that there are still several hundred national and regional lenders out there. Guess what? You only need one! They are still selling their products to Fannie Mae and the good news is that the rates are still low.

Here's some more good news. Fannie Mae (a government sponsored agency that establishes standards and buys 1st mortgages on the secondary market) and FHA (Fair Housing Administration that establishes guidelines and insures loans for people with limited credit) is being pressured by consumer groups (and Congress) to pick up some of the slack in the non-conforming market. FHA is especially sensitive to the non-conforming market fallout and has even begun a program called FHASecure Initiative. This program allows homeowners with adjustable-rate mortgages (ARMs) to refinance with FHA after the loan has become adjustable. If there is sufficient equity in the home, FHA will allow the homeowner to refinance WITH LATE MORTGAGE PAYMENTS. FHA is also raising maximum loan amounts allowed and dropping the minimum score requirement. (It used to be 580) All good news for those clients, "on the bubble".

The long and short of it is this.... If your customer is smart, now is a great time to buy in North Carolina and probably in many other markets as well. We have the best of everything. Nice stable market, good, but not overblown appreciation, plenty of selection and the rates are low. What changed? NOTHING! So Realtors, turn off CNN, relax and know that selling bad new is the news media's job. Not selling it is yours.

Are You Really Committed to your Marketing?

1st Metropolitan Mortgage — Mon, 17 Sep 2007 20:51:26 -0500

O.K., pop quiz here. How many "touches" or contacts with a past customer does it take to build name recognition? The answer I've always heard is eight. How many of you have contacted your past customers 8 times this year? I would dare to say it is, at best, once or twice.

How about this? What are you doing to bring new customers into the fold? Is your marketing hit or miss? Do you half-heartedly approach this daunting task? Do you have a written game plan regarding your marketing including actions required and amount of money to be spent?

If my guess is correct, the answer is probably no on all counts. Marketing takes up time, it's daunting, it's complicated, it's expensive, but it's also the one thing that we all have to do if we want to be in business tomorrow.

Now I know most of you dread the thought of marketing. I have a marketing degree, so it is my thing. My partner, Dave, gets glassy eyed thinking about it. Last week he was in my office and I was in the process of telling him about a great new marketing campaign we would be embarking on. In the middle of my euphoric raving extolling the virtues of marketing and how many new customers we could reach, he just sighed and said, "J.R., I wish I could tell you I cared, but I just can't." Most of us are like Dave. We don't care as long as the phone keeps ringing, but while the phone is ringing you should be hitting your marketing the hardest, because when it stops ringing, it's too late.

So, how do you get started? First thing's first. Remember, it's extremely expensive to get a customer in the door. Once he or she is in the door, not only do you want to make them a customer for life, you want to make them an advocate for life. And what do they advocate? Why, your business of course! Not everybody will buy or sell a house every day, but most people know someone who will several times per year! Remember, REPETITION BUILDS RECOGNITION. You want to build mind share, that is, you want your name to be at the front of a person's mind when they are casually talking to that potential client. "Hey Bob, you know I just overheard you wanted to sell your house. Let me recommend an agent for you." Why would they recommend you? Because they just got a postcard or a letter or a phone call or an e-mail from you last week and you are at the front of their mind. You've built MINDSHARE!

There are many programs available out there to remind customers who you are. Some are expensive, some are less expensive. (Hey, this is part of your budgeting plan for marketing) You could do it yourself. That's fine until you get so many past clients that you can't keep up. We have newsletters printed out with our contact info on them. We mail them monthly. We also use a program called The Turning Point that sends out cards with our contact info as well as the Realtors' contact info on them at specified times. Look around the Internet. You'll find plenty.

Secondly, a well thought out and well-defined marketing plan is worth it's weight in gold. We use a combination of networking groups, e-mail, this blog, direct mail pieces and direct sales to get the word out. Look at the list of tools I just wrote. Only one of them (direct mail) actually costs us any money. I have always believed in the face-to-face, direct contact, build a relationship sales method. This isn't for everybody. Some people think that throwing a lot of money at marketing in the form of magazine and newspaper advertising is enough. I guess that's fine if you have deep pockets, but I don't necessarily buy into it. I always enjoy seeing a mortgage company with a lot of print advertising. This tells me two things. Number one, they are spending a lot of money. I like that because I like my competition wasting money. Number two, I know they're wasting it, because I've never seen anybody really make a phone call off of a mortgage ad and it lets me know they aren't tracking where their leads are coming from, because if they were, they would know they are wasting that money.

This brings me to the third and final point. ALWAYS KNOW WHERE YOUR BUSINESS IS COMING FROM!!!!!!!!! People will spend money and when you ask them where they are spending it or where it's most effective or what get's them the biggest bang for their buck; they ain't got a clue. We personally keep a daily log that Dave and I fill out every day and it shows where the lead came from, who it was referred from, the buying and selling agent and the seller's info. This is all entered into a database and tracked. It took a long time for me to get my partner Dave (non-marketing guy) to start doing this, but now he does. (and it only took 2 months worth of beatings!)

Anyway, I hope these tips help. If you have a solid plan and are willing to be consistent and persistent; I think you'll find you're spending less time and money on your marketing while still getting the greatest return on your investment.

How many more people in Kannapolis?

1st Metropolitan Mortgage — Sun, 16 Sep 2007 15:25:45 -0500

Having lived in Kannapolis, NC for most of my natural life; I'm pleased to see the changes that are coming. For years we've been the bastard step-children of this area. Full of uneducated "lint heads" and lacking in sophistication. Cannon/Fieldcrest/Pillowtex or whatever it was at any particular point dominated the landscape and anyone who didn't have a relative working in the mill wasn't considered a native. But my friend, the times they are a-changin', to quote Bob Dylan.

And boy, is the landscape changing. A $1 billion dollar redevelopment project by David Murdoch and his company, Dole Foods, to make Kannapolis a national, bio-tech research facility is underway. (unless you live a cave, you know that already) Educational participants include Duke University, N.C. A&T University, N.C. State, The University of North Carolina Charlotte and The University of North Carolina Chapel Hill. The facility will eventually employ directly over 4,000 people.

Figure the average household in the U.S. for 2006 was 2.61 people according to the U.S. Census Bureau. 4,000 x 2.61=10,440 people. According to city-data.com the estimated population of Kannapolis in July of 2006 was 40,223. That is an increase of 25.9%. Of course, this doesn't take into account the number of people that will be brought to area to handle the increased population. Restaurants, hotels, various service industries not to mention the number of new city employees that will be required to handle the load will push the population up further. Keep in mind that many of these new folks will be moving into the area from other places due to the specialized training and experience required for these new jobs.

Let's extrapolate the numbers a little more. The Indianapolis Private Industry Council did a study in 2006 that showed that for every manufacturing job created in the state of Indiana, 3.76 more jobs were created. Now, of course, these aren't manufacturing jobs, they are research jobs and this isn't Indiana. However, if you assume that the number is high and divide it by half, you still get 1.88 new jobs per new employee. (3.76/2=1.88) Take the 4,000 new employees and multiply that times 1.88 and you get 7,520 new jobs. (4,000 x 1.88=7,520) Now consider that this new workforce that is in support of the actual bio-tech worker force doesn't require the sophisticated training or experience and that only half of them can actually be hired locally. (We'll be conservative here) That would be 7,520/2=3,760. Add that to the bio-tech workers and you have 7,760 people actually coming to Kannapolis to work every day if they don't live here already. Can you imagine people actually commuting to Kannapolis? Weird.

Anyway, the numbers of actual new employees coming to the area would look like this:

4,000 new bio-tech workers + 7,520 new support workers = 11,520 new jobs WOW! Remember, only half of those support workers will be coming into the area. The rest we will assume will already be from here. That is 3,760. So, if you want to determine the additional population growth, you take the number of biotech workers plus the number of support workers and multiply it by the average household size. (4,000 + 3,760 = 7,760 x 2.61 = 20,254 new people in Kannapolis!) Population in July of 2006 was 40,223. Take 20,254 and divide it by 40,223 and you get a population growth of 50.3%! Do any of you realtors want to do business in Kannapolis yet?

Have I Got a Deal for You!

1st Metropolitan Mortgage — Sat, 15 Sep 2007 21:20:52 -0500

Don't you love it when you're dealing with a mortgage broker or banker and he gives you the "Have I got a deal for you!" speech? Obviously, there are a lot of people out there who have a tendency to embellish. I actually had one Realtor tell me that one of my competitors began his presentation to her office with, "I'm (his name) and I'm here to change the world." That's funny, I thought we were in business to provide mortgage financing to potential homeowners.

I've seen guys (and girls) give some of the most outrageous presentations and make some of the most outlandish statements you have ever heard. Of course, that is probably why our industry is assumed to be full of liers and con-men.

The great thing about this supposedly difficult market is that it is weeding out the idiots. I mean, you could pretty much be a monkey (and not a trained monkey at that) during the refinance boom through the end of the 90's and into 2002 and make a ton of money in this business. I have a friend of mine who is a corporate headhunter that says that she keeps running into clients who are former loan officers. They've been laid off and think that they should be making $300,000 in the corporate world. The problem is, they didn't know squat when they were loan officers. They were order takers who could answer the phone. Now, when it takes skill, knowledge and experience to make it in this business, they are screwed.

Anyway, I say bring on the tight market. Let the idiots die a slow death. We don't need any more order takers.

Credit Crisis Cripples Markets-And What it Means to the Market

1st Metropolitan Mortgage — Sat, 15 Sep 2007 12:14:29 -0500

Several weeks ago, American Home Mortgage and its wholesale counterpart, American Brokers Conduit, became a casualtyof the credit crisis. Last year, this company closed over $58 billion in home loans. Despite being, by all accounts, a well-run business, market conditions forced them to file for bankruptcy, leaving nearly $800 million in loans unable to close. Tens of thousands of borrowers have now been left without financing as a result of companies like this going under. It's been announced that Greenpoint Funding is going to close up shop and Countrywide Home Loans, one of the biggest lenders in the country, had to borrow $11.5 BILLION dollars just to stay afloat.

Clearly, with over 100 national lenders having now closed shop in the last eight months, this is no longer simply a sub-prime lending issue. The credit market is experiencing unprecedented turmoil that, according to Mike Perry, CEO of Indymac Bancorp, is "broader and more serious than past disruptions."

What does this mean to the real estate market?

•· Sellers can no longer be reluctant to accept offers or reduce prices. Tightening credit and diminishing mortgage products will continue to reduce the pool of qualified buyers. This, along with the increase in national inventories, means now that careful consideration will be required when negotiating with buyers and sellers.

•· Buyers with credit issues or who have difficulty providing required documentation can no longer sit on the fence. If market conditions change, buyers who qualify for a loan today may not qualify a few weeks from now for the same exact loan. Just this week, many lenders have stopped offering no-Doc loans, and some lenders have even pulled back on all forms of stated loans. The state of Nevada has even made statedloans ILLEGAL! As market conditions continue to change, a buyer's pre-approval status can disappear even more quickly, delaying or spoiling the deal. We have actually had to change lenders in mid-stream on several customers due to the fact that we couldn't count on that lender being in business when it came time for the loan to fund.

•· Sub-prime and Alt-A refi candidates, especially those with ARMs scheduled to reset over the next 12 months, need to act now - even those with a pre-payment penalty.ARMs borrowers struggling with monthly payments now might be shocked to know that monthly payments can double in some cases once an ARM resets. Not only that, guidelines continue to tighten. Being able to qualify today doesn't guarantee that the program will be available if you wait.

All-in-all, the market is actually performing quite well. My partner Dave and I discussed this last week and we determined that we aren't turning down any customers for loans that we wouldn't have turned down 6 months ago. Any market has ups and downs and in the long run the customer will actually benefit from this in the form of lower interest rates and more "sensible" guidelines. Enjoy the fact that we live in the Charlotte area, which is still growing and thriving despite the "market meltdown" in other parts of the country.