From the desk of George M. Akerley
Ruminations as the calendar flips...
Boy, have we had challenges in 2007! Not only did we have to deal with the "implosion" of many of our contemporaries in the mortgage business, but we also have to try to sift through all the solutions offered by our federal and state governments to the suddenly rampant delinquencies on mortgages.
This is not to mention a declining market, though certainly not everywhere; at least in Connecticut. We happen to be located in one of the stronger states in retention of market values, fortunately. And yet, there are still plenty of bargains for our clients to find. How will we ever get them over the hurdles of great expectations; fear of stepping into a seemingly declining market; fear of reduced equity; the lack of confidence in lenders? We have a lot of work to do, it appears.
Nonetheless, as we embark on this new challenge, we can take heart in knowing that most of those who have dropped out of our view (lenders and other real estate professionals) were likely to have dropped out sooner or later, anyway. Those who have survived, and who will survive the coming months, are those who will be here for the long haul.
Frankly, the media has not been our friend throughout these last several months. Though it is not the case, it certainly seems that each time I switch on my TV, I hear more bad news about real estate and impending foreclosures. Our local newspapers have analyzed and dissected sales data and concentrated on the "credit crunch" to the point that one could easily be convinced we are in a state of total disarray. Is it really all that bad? I don't think so.
As we know, interest rates are at near all-time lows. CHFA continues to be a prime mover in the local marketplace; not only with a wonderful rate (5.5% at this writing), but also by providing Down payment Assistance Loans for those who need it. Truly, 100 per cent financing has not gone away. The resurgence of FHA loans in this marketplace is a boon, particularly with the recent risk-based restrictions on conforming loan products.
Many potential borrowers have been affected adversely by the pricing changes in our loans, but their challenges as evidenced by credit reports would quite likely put them at risk if and when they were qualified for some of low-down payment arrangements. We are back in a "vanilla" environment, in which we will be verifying income and assets, and ensuring that people can actually afford the homes they are hoping to purchase.
I think I just heard a large sigh of relief on that note.
Knowledgeable loan originators, astute realtors, and all those who support us in our endeavors in this business can be confident that we are doing good things by maintaining our cool in hot times, by providing a helping hand to the buyers and borrowers whose confidence has been shaken by recent events. I think that our professionalism and our continued desire to serve will ensure that 2008 will be a stellar year. I know I look forward to it with a great deal of anticipation. I pray you do, as well.
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