Have You Changed Your Practices for Lender Referrals?

Since the lending industry is in the shake up period, I am curious to see what have been the experiences of other professionals in our industry.  Many mortgage brokers and lenders have closed their doors or gotten absorbed by others.  Many of the loan programs have or are drying up. I am sure many of you have felt the impact in different ways.

During this period of change for the mortgage industry, have you changed your approach to how you give referrals to loan officers and lenders?  Do you still use brokers or do you find yourself giving more of your referrals to primary lenders?  Are you seeing more or less loans being done by internet and out of state lenders?

What types of loans are your clients getting these days?  Has there been much of a shift in the types of loans they are getting?  What are the challenges you are seeing in your market?

I am sure my experience is not typical.  I honestly have not seen much of a change in regards to my Oahu buyers.  I have always given the majority of referrals to local funding Hawaii lenders and have pushed to get my clients pre-approvals with full docs.  My buyer's loans have gone through and continue to go through smoothly.  A large percentage of my buyers are military so many utilize their VA benefits.  Sub prime has been a tiny percentage of my business.  The changes in the subprime market, really has no impact on my day to day business.

I have had a few less than desirable situations that resulted during transactions where I represented the seller and the buyer used a broker or an out of state lender, who dropped the ball. 

I am sure that many of you have faced this nightmare.  An out of state lender, the deadlines are passing and they can not be reached.  At the last minute or even after the deadlines have passed, there is a major problem.

In a market of change it is the professionals who will survive and thrive; all others will struggle or get out of the business.  Hopefully they will not leave a wake of destruction on their way out.