At this point in time, I am sure that half of our industry is questioning their current employment. I am going to go out on a limb and say that half of the entire housing market, whether it be Realtors, Insurance Agents, Loan Officers, etc....they are getting nervous.

Do not quote me but I have been given estimates that 38,000 people in the lending arena have been let go, with 70% of that number in August only. With Countrywide preparing to add to this number, the weak minded are getting scared.

I see the look in so many of my Originators. Unsure of their ability, where this is headed, can they stick it out. Yet all the time, I am showing them new avenues to explore business, teaching them better ways to refine their current business model, and sometimes feeling like a History and Economics teacher when I get into explaining what a cyclical business cycle is and how it relates to our industry.

So why I am I so excited about what is happening?

I truly believe that it is a period in time that will make us all better (all referring to the individuals and companies that will continue to thrive). Those seasoned veterans who have seen this before and they are prepared. The Top Producer's that came in when it was Hot....some are prepared. Those that banked on their Broker to provide them refinance leads every morning when they walked in....a few will survive.

This is a time where we will finally get back to true competition amongst our lenders, although, that is a double- edged sword. I remember times when AE's wouldn't even go to bat for you on a simple exception. They had too much business to worry about that one deal. They liked to play hardball. Now with the majority of our loans being approved through Fannie, Freddie, or FHA.... there will not be many niches left for AE's to feel like they have the upper hand.

Now I am trying not to come off as naïve in that there will not be niches, and that this downsizing does not hurt in the fact that products and programs have been slowing leaving our arsenal, but just like any other business... things change, and so will ours. New programs will be released, others will come back in due time.

The thing I am truly excited about, those who have no business being in this business will soon be put in checkmate and will flood to the next big "Sales" industry. I know many people who have already jumped into the pharmaceutical sales industry or better yet into the commercial lending arena. They will ride that wave until all else fails there!

The underlying point.... for those in our market who viewed this as a job that paid well and not a career that has many rewards other than monetary compensation...will soon move on to the next gig...leaving the few true professionals out there to clean up the mess over yesterday past.

For a very accurate and humours definition of who you are in this industry, refer to Russ Martin's blogs on Loan Officer Species, and Realtor Species.