Oh what a rollercoaster.........or should I say pendulum

Reblogger Praful Thakkar
Real Estate Agent with LAER Realty Partners

Things have changed in mortgage industry for good, I believe. As per Mark, this has been a great ride for 15 years. And he compares it with...pendulum! Here is a re-blog from Mark on his experience in mortgage industry.

Original content by Mark Schmitz

I have spent my entire professional career in the mortgage industry spanning some 15 years now.  When I first started, it was the oldest of "old school" deal-getting skills.  I would literally start my day with a new letter in the alphabet in my local phone book and start calling.  Rates were in the double digits and there was no such thing as a "do not call list".

When I was fortunate enough to land an eager consumer I would take my hand written loan application for the refinance or purchase and literally walk it over to my processor.  NOTHING was done via computer... everything was handwritten and faxed.  The banks were lending on true credit worthiness and not caring too much as long as the loan made sense. 

Obviously with the economic changes and the subprime market debacle, things have certainly changed.  I had almost lost faith in the financial lending system with a particular "perfect" client.  This client had 800+ credit scores, 6 figures cash in assets, 20+ years on the job ~ stable as stable could be right?   Not according to some of the banks I tried sending him through.  I literally would get condition sheets back requesting 3 pages of stips in order to finally gain approval.  I thought to myself ~ if this guy can barely get approved who can?

This rollercoaster or a better metaphor would be pendulum ~ has appeared to hit high on the complete other end of the spectrum. 

pendulum

Several years back, it seemed anyone and everyone could get a home loan approved and within the last twelve months those "perfect credit" borrowers have to beg and plead to get through the loan approval process. 

As of late though, the banks seem to be loosening their grip again and hopefully things will settle back to some middle ground of the pendulum, where those with desireable credit and even those with just slightly less than desireable credit may actually achieve the American Dream.

 

Mark Schmitz

314.619.4321

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Rainmaker
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Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Praful - good insight into the changes in the business.  I attended a class yesterday for real estate professionals regarding FHA loans.  There is a lot more work to do nowadays by loan officers to get those loans agreeable to the underwriters.  Watching your assets!  Best of success to you!

Nov 11, 2010 12:26 PM #1
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