1 In 50 Loan Apps Are Good

This is a very frustrating time for loan originators.  Lots of people who want loans but the new restrictions make it very difficult to approve them.  I can't help but wounder how making so many changes so quickly is going to REDUCE foreclosures rates?

I don't know about your ratio's as that sounds pretty low.  We are not giants in the industry and our focus has changed from loan originations, but our Mortgage Brokerage Division has gone from 70 million a year to about 10 million a year....not good except to say we are still here and plan to be here next year.  In talking with other loan officers and industry professionals,  I am hearing a lot of frustration in trying to get loans through underwriiting and this comes from not just brokers but direct lenders.  These are difficult times but business will still need to be done and will be done so hang in there with a positive attitude.

I am not sure it is 1 in 50... but it sure feels like it.  But the reality is I think the market breeds this. Every time I have been in a slow market I notice that I talk to more people that just are not qualified.

And it has little to do with guideline changes... Just plain horrible credit, (dont know about you but scores below 500 have always been a firm "no" from me), people that do not qualify...(20k/yr just wont buy a house around here EVER!)  So I cant blame it on the enviornment entirely... about 1/2 of it can be blamed on the educational system that doesnt teach basic finances to our kids.

the important thing is to weed them out and to NOT take the app if they are bad. That doesnt help anyone..

It's tough out there.  We been placing more hard money money deals than anything lately and the terms we're negotiating are outrageous!