When I started working in the mortgage industry many years ago. Here in the Palm Springs, Coachella Valley area the were only a handful of mortgage brokers working here. Less the 40. Around 2002 and 2003 when the Coachella Valley was in the midst of its housing boom and rates were ridiculously low, the "fly by nighters" in the mortgage profession came to the valley in droves to set up shop and make a quick buck or million. By 2004, there were over 200 mortgage brokers doing business here in the Palm Springs area. Employing unlicensed personnel, individuals uneducated in mortgage or real estate and there was a "just get in the way and you will make money", mentality. Lending guidelines were lenient and all that a person needed to know was how to take a loan application in order to fund a loan.
Now lets fast forward to 2007. The subprime market crumbles, the spike in housing values bubble bursts. Underwriting guidelines are stricter and mortgage banks are closing their doors for good. Mortgage professionals now have to work much harder to fund a loan. They have to work multiple scenarios and research guidelines and really, really take time with their borrowers. Guess what? All those "fly by nighters" are packing up and leaving also. And all of their unlicensed employees are going with them...back to their old jobs that they should have never left. Back to retail or car sales or back to the office they used to work in. These individuals never set up for a market like this. A market where a mortgage professional could just print a business card and be able to call himself one.
We are in a market that will only sustain the licensed, seasoned, referral based mortgage professional. I tell people everyday that if they are going to work with a mortgage consultant, be sure they have at least 6 years experience. That way you will know that they were in the business before the refi and housing boom and have the knowledge of the industry and all it ups and downs.
The knowledgeable, trustworthy loan orignators are still out there. Loans in the Palm Springs and Coachella Valley are still out there. Just take the time to find the right person that fits your needs and that you have confidence in being able to get the job done. Not all loans will close but you should rest assured that the person you choose to do the job for you, did just that. DID THE JOB FOR YOU.
Thats my 2 pennies
Your Mortgage Guy in Palm Springs...Charles Dismuke
Doing Palm Springs loans since before the "BOOM"!
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