Referrals from Banks and Credit Unions Makes up 20% of My Business

Mortgage Client Referrals from Banks and Credit Unions Makes up 20% of My Business

A Waterbury, CT. bank recently referred a client they couldn’t help. This couple wanted to buy their parents’ home, but their credit scores were too low for this bank. The parents did their checking account business with this bank for many years, but it still didn’t make a difference.

They were offering the home to their daughter and son-in-law for $150,000, even though the true value was closer to $200,000. Nice parents! The parents had a small mortgage remaining and were willing to handle the down payment and the closing costs. Nice parents.

We did a 15 year FHA mortgage at 3% interest. There was no monthly mortgage insurance as the gift of down payment was over 22%.

Unfortunately, most banks and credit unions are credit score driven. When this is one of the main criteria that gets you to the door, the doors aren’t open. Delighted we could assist the parents and kids to accomplish their goals.

Mortgage Businesses Faring Better as Banks Endure

By: Krista Franks Brock

Mortgage-related business closings and failures are on track to post fewer incidences in 2012 than any year since the mortgage crisis began.

In the third quarter, 17 mortgage-related businesses failed, down from 25 in the previous quarter and 31 in the same quarter last year, according to a report released by Mortgage Daily.

Bank closings followed this trend, falling from 15 failings in the second quarter to 12 in the third. Both numbers are down from the third quarter of last year, when 26 banks failed.

Bank failures have been on the decline for the past four consecutive quarters.

Two nonbank mortgage-related entities closed in the third quarter. This is down from nine in the previous quarter but on par with the three posted a year ago.

Meanwhile, credit unions continue to post few closings – three in the third quarter and one in the second.

Year-to-date, 69 businesses have exited the mortgage sector, and Mortgage Daily predicts by year-end the total could be fewer than 90. Last year’s total was 137.

Mortgage-related business closings have not been this low since 2006, the year before the subprime crisis when just 31 closings took place.

In 2007, 167 mortgage-related businesses shut their doors, most of them nonbank entities, and the sector has continued to see heightened volumes of closures each year since then.

While numbers are currently low, one company’s exit from wholesale lending did make a splash last quarter. Wells Fargo left the wholesale lending sector after a $175 million settlement regarding alleged discriminatory lending practices.

 image: freedigitalphotos.net