One of the things we fail to remember is the thing most crucial to any transaction.  And in this market, this quality is more vital than ever.  I wasn't around in 1981 or 1973.  I wasn't around in the 90's, at least doing this for a living.  Yet, what I've garnered so far as this is a rough time for consumers and professionals alike.  Are you feeling stressed yet?  Yeah, well, that too shall pass.

Communication is such a simple concept but not nearly as well-refined as we should make it.  In my mind, which is the only one I have access to on a regular basis, communication is the key to being damn good in this industry.  Let me explain....

Friday, I closed a loan for a married couple getting out of an adjustable rate.  A week and a half before, I had discussed with them the volatility of the market.  These aren't prime borrowers, they were looking to get cash-out, have several 30 day and a 60 delinquency in the past 12 months and they have a debt ratio problem of sorts.  In English, the money coming in isn't nearly as attractive as the financial responsibilities going out.  They thought it was a good idea to buy a brand new car ($600.00 payment) after they bought their house two years ago.  Great...

A week prior to closing, we were clear to close (in mortgage terms, ready to sign the final paperwork).  Then, that company went out of business.  So, we went elsewhere and were clear to close once again, and that company went out of business, no longer closing or funding loans.  Great...

The original terms I quoted these borrowers were approved by a bunch of investors/lenders....who all bit the bubble before we wanted to close.  An 8.5% rate turned into 10.3% and we are talking par mortgage people!  $15,000 in their pocket turned into $6,000....and then $3200 once it was known they hadn't paid their taxes and sewage bill like they said they had.

It was/is my duty to give the news about 12 hours after I found out.  I found at 10:00 P.M. by cell and called my customers at about 10:00 A.M. the next freaking day.  I felt like a lollipop trying to shove myself down their throat.  Their reaction was understandable.

"Wow, Jason, I know we talked about this but it just doesn't make much sense anymore to do anything.  Maybe we should wait, or talk to who holds our mortgage and maybe they will do something?"

I had never used the angle before, but I used it then and have no regrets.  "Trust me, your first rate adjustment is 2% higher than the fixed rate we are giving you and if you wait, you may not get a loan at all.  As far as the company who holds your mortgage, if their retention center can get you a rate lock letter fast, that's your best option."  (Knowing that company is going through more lawsuits than Michael Jackson's last visit to Romper Room).

I was the invisible man on the other line as they called their current mortgage holder.  I knew I was wasting my time, but I've done plenty of that in 31 years here on earth.  In the end, they couldn't/wouldn't do diddly squat.  I told them straight up, you can try to sell and rent thereafter....or we close now and you hold your home.  Point blank, you can afford the payments in reality, and reality is what we are dealing with.

Ladies & Gents, this has been a volatile market for sure.  To me, it's not about the rates being volatile, it's the products that are available...or not.  Things have been changing daily.  Remind yourself, good news or bad news, to follow-up with your pipeline accordingly.  My feeling is, if these customers didn't close Friday, they probably wouldn't have closed at all.

Our major task in this market, or any market, is communication.  That isn't always the easiest thing to talk about.