Are we dealing with adversity or opportunity?

Mortgage and Lending with American Home Bank

Are we dealing with Adversity or Opportunity? Nov 22, 2007


Times are tough, Mortgage Originators are working harder than ever before and making less than they were over previous years.

The liquidity crisis has resulted in the closure of dozens of mortgage banks and, reportedly, 100,000 originators (approximately 35% of originators) have the left the business. Underwriting standards have tightened and it has made it difficult for borrowers to get approved for a new mortgage. With so many companies and people heading for the emergency exits it might seem as if the sky is falling... but it is not.  In fact, the opportunity to be successful in this market is tremendous.

For example, the Mortgage Bankers Association says that the number of loans is down just 11% from 2006 to 2007. If the number of originators is down 35% and the number if loans is down 11% it is the equivalent of a market that is up 15.7%.

The most successful originators I know have turned off CNBC, CNN, Fox and Bloomberg, stopped reading the headlines and tuned out the doom and gloom news that many use as justification for their poor performance. The most successful originators have just gone to work with an expectation for success. They have relearned lender guidelines, gone back to the basics and are focused on helping borrowers get the mortgage they need to better achieve long term financial health.

I am not suggesting that the market is easy, just that you are more likely to experience what you expect. You are a lot more likely to achieve success when you expect success. Do you believe the market is filled with opportunities for success? Do you believe you can make a difference? Do you believe that if anybody can help a borrower use their mortgage to better achieve their financial goals, it is you? Or do you think people are not getting mortgages and that even if they want one, they cannot qualify? Watch your self talk, because it is those little conversations you have with yourself all day long that create your expectations for success or failure... and often determine if you will be successful or not.

What we need to understand is that the market has changed and change is often hard. That is why it feels different. We became used to doing business one way and the market changes have forced us to learn a new way of doing business. We are reverting back to the way loans used to be underwritten and approved. Proof of income and assets are once again important criteria for getting loans approved. The old way of doing loans is the new way again. We are getting back to the basics and the sooner you make the mental transition and accept the change as healthy for our industry, the sooner you will be able to achieve the success that is possible for you.

You can find this article on

Comments (0)