We had heard the rumors. Their loan officers were knocking on our door, and in meetings with our owners. But today it became official: our biggest competitor is out of business. You might think it would be cause to jump for joy, but no. It is sad. It is scary. The mortgage crisis is costing people jobs in a big way, and now it is way too close to home.
You see, our biggest competitor used to be us. Several years ago, our company broke off from their company, with our owners inviting the chosen ones to go with them. Most of those within our company, started with this downfallen company, rode out the boom there, and learned the business there.
In fact, in a strange twist of fate, we moved into their prominent downtown location a year ago, when they began closing offices. We know them. We respect them. And sadly, we know what put them out of business: The mortgage meltdown of 2007.
According to a report in our local newspaper, 325 jobs in the mortgage industry were lost in the month of October, right here in our area. This confirms what we have all been reading: there is a mass exodus from the mortgage industry. Those riding the wave of easy money are finding the new reality too difficult. Some need a steady income stream to survive, and are not willing to bet on a speedy turn around. Those just starting out in the business have decided to go in a different direction.
The talk around town is how many great people, FORMERLY in the mortgage and title industry, are UP FOR GRABS.
So in the long run, this IS good news. Those getting mortgages these days, are, more than ever, assured of getting an experienced loan officer, a committed loan officer, and one who is in the business because they have demonstrated the ability to keep, and maintain, a loyal client base. I don't know about you, but as a borrower, this would give me a good feeling.
But in the short run, lives are being turned upside down.
Our industry remains in transition and transitions are always difficult. This one is no exception. While some say this is merely the tip of the iceberg, I am only certain of one thing: 2007 will definitely be remembered as the year the face of the mortgage industry changed forever.
Only the strong will remain standing.
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