We are hearing more and more stories about Realtors, who were with one lender forever, but now they are gone. What happened? The lending industry has had tough times before but almost 70% of my competition dropped out in the past year. That is a huge change. The good news is that, in most cases, its for the better.
Many brokers and loan originators got in at a time when all you had to do is pick up the phone and you had a deal. It was like the wild west and very little regulations held back anyone from getting a loan. I remember when we used to be able to do "1 day out of bankruptcy"...Or 100% investment property.
Most of those originators that got in while the wild west was on, couldn't hack it in a normal lending market. Check out my blog on "Its not a buyers or a sellers market, its a lenders market" for more information. Many people are complaining about the extra hoops they have to jump through now and all the paperwork that they have to get us, but really, the lenders are doing what they should have long ago. Would you lend $200,000 (average home cost) to someone you didn't know without any income or assets to prove they could pay you back...not likely.
Ultimately, these changes in tough regulations and more education, testing and licensing to get into this business has weeded out the bad guys (in most cases) and left the best of the best! Again, I'm proud to be standing tall!
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