A Decade in Review....the Rise and Fall of Real Estate

By
Mortgage and Lending with Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 NMLS ID# 158606

Let's get the easy stuff out of the way:  

PRESIDENTS

  1. Willie Clinton was in office from 1994 until 2001;
  2. George Bush, or Dubbayu from 2002 until 2007;
  3. Barack O from 2008 until the present.

POLITICS:

  1. Willie Clinton - Democratic president with a republican congress;
  2. George Bush - Republican pres with republican congress;
  3. Barack Oprah Obama - Socialist president with a democratic congress;

Real Estate

     A.     Great Housing Boon in the early 1990's.  Clinton gave a directive that was published in the Wall Street Journal saying that Wall Street should lead the way to record lending.  There should be a record amount of new home owners.  Home prices were bought above list price.  Pricings went through the roof;

     B.     1996 - Sub-prime and Alt-A loans, stated loans, no income verification loans, no doc loans, stated income and stated asset loans become the bane to all of wall street.  There are many contributors to this collapse.  I think the biggest thing is the government telling the world that we're going to lead the way for homeownership whether the homeowner was ready to own or not.  As a result contributions for the economic collapse came from:

  1. Appraisers guilty of inflating values;
  2. Lenders pushing clients into loans they really don't need;
  3. Consumers saying that if lender A doesn't approve them then they'll go down to lender B;
  4. Wall Street buying up paper that never was intended to perform;
  5. Title companies in the midst of flipping and fraud scandals;
  6. Realtors - the greed of the next deal over the best interests of a client;
  7. Our government - they paid no attention to the needs of banks or the consumers.  They focused in physical crimes or crimes against man instead of white collar crimes;
  8. Lawyers - although there to protect, were often times found in the middle of a fraud scam and linked to a crooked title company;

     C.  After 1996, the death of the big banks came.  Check out www.ml-implode.com.  Since 2006, there have been over 374 major banks to bite the dust.  I mean GONE!!!!  Kapooey!   Couldn't stand under their own weight.  Pretty tough pill to swallow:

  • Countrywide;
  • First Home Mortgage;
  • American Home Mortgage;
  • Sovereign
  • Wachovia
  • and First Horizon to name a few;

     D.  Now the Government is all about control.  The government should have prosecuted the crooks to begin with but failed to do so.  As a result the whiplash is often extreme and over reaching.  We now have the Good Faith Estimate reform beginning the first of 2010.  RESPA reform and compensation changes are imminent for those in lending. 

     E.  Is there any good news?  YOU BET!!!!

  1. Most of the deadbeats and the dead weight has left the industry;
  2. New licensing regulations as the National Mortgage Licensing System will create a higher standard for lenders who want to be in the industry;
  3. Relationships are more important that ever before.  Therefore, getting with referrals sources and adding value is imperative to great success in this next decade. 

R.E.O. Speedwagon has a song called "Only the Strong Survive."  I know that this has been true over the past couple of years.  I think that the title can be changed to say that only the strong will thrive.  I think that if you're adding value to your clients and to your referral partners, you will THRIVE in 2010.  I'm game and I'm ready.  How bout you?

 

 

 

 

Posted by

If you choose, you can find me here:

          Follow The Twittering Tweets on Twitter        Follow Bettag's Blabs on Facebook        Google Me If You'd Like        Follow Me On Linked In

 

Cherry Creek Mortgage Company       Path 2 Buy Certified Coach Follow me on Pinterest                 

                      NMLS ID#158606          Equal Housing Logo     An Illinois Residential Mortgage Licensee

 

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Kevin Robinson 12/28/2009 01:21 AM
Topic:
ActiveRain Community
Groups:
Politics And Real Estate
1st Time Buyers
Out Of The Box!
Almost Anything Goes
Blatant Politics
Tags:
realtor
history
relationships
relationship
real estate
relations
history of real estate
attorney reviews
the decade in review

Spam prevention
Show All Comments
Rainmaker
1,931,527
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Larry

What ten years saw come and go. Yes "only the strong will survive but it looks like we are back on the road again. Great post.

Dec 28, 2009 01:16 AM #1
Rainer
45,598
Joyce Jewell
Jewell Real Estate Agency - Wildwood Crest, NJ
GRI, ePRO, ASP, ABR, SFR, RSPS

Hi Larry,  Good blog.  I don't believe in everything you've said, but a good deal of it.  I'm ready for 2010 and looking forward to a great year!

Dec 28, 2009 01:29 AM #2
Rainmaker
99,135
Gerry Suarez Jr.
Jet Home Loans NMLS 1660135 - Maitland, FL
FL Mortgage Guru

Bring it on brother- we have survived and will flourish in 2010! If only we could find a way to keep the government from mucking things up any more- Oh, that's right- we can VOTE THEM OUT!:)

Great post Larry, and have a Happy New Year!

Gerry Suarez, Jr.

Your FHA Loan Pro!

Dec 28, 2009 01:34 AM #3
Rainmaker
99,135
Gerry Suarez Jr.
Jet Home Loans NMLS 1660135 - Maitland, FL
FL Mortgage Guru

Bring it on brother- we have survived and will flourish in 2010! If only we could find a way to keep the government from mucking things up any more- Oh, that's right- we can VOTE THEM OUT!:)

Great post Larry, and have a Happy New Year!

Gerry Suarez, Jr.

Your FHA Loan Pro!

Dec 28, 2009 01:34 AM #4
Ambassador
895,735
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Tom...it is coming back....slowly but surely.

Joyce....it's too bad that it occurred, but we agree that it's time to move forward.

Gerry...you my man!

Dec 28, 2009 04:25 AM #5
Rainmaker
813,882
Bill Ladewig
LoanOfficerSchool.com - Escondido, CA
Experience Is Your Advantage

Hi Larry, too true!!!! The strong will survive and florish in spite of government.

Best wishes to you and yours for a great 2010

Bill Ladewig

Dec 28, 2009 08:45 AM #6
Rainmaker
340,210
Judy Greenberg
Coldwell Banker Long Grove - Buffalo Grove, IL
Coldwell Banker - Buffalo Grove - Long Grove Homes

Larry, great summary...   Happy New Year my friend...

Dec 28, 2009 01:30 PM #7
Rainmaker
3,200,276
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Larry, this proud DEMOCRAT is ready and anxious for a new year in real estate :-)

Dec 29, 2009 01:13 AM #8
Rainer
478,183
Not a real person
San Diego, CA

Not too long ago right-wing ultra conservatives were screaming about nationalized banking. Now, with most (all?) of the banks having paid back the Government, so much for that right-wing scare. LOL. I suspect all these other right-wing scares will evaporate too.

Happy New Year!

Dec 30, 2009 05:38 PM #9
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
895,735

Larry Bettag

Vice-President of National Production
What to know how to buy if you're a bit credit challenged?
*
*
*
*
Spam prevention

Additional Information