What a mess! The big banks screwed up, the mortgage brokers screwed up, the regulators screwed up and now everyone is scrambling to come up with a "quick fix" solution to the damage caused by 10 years of everyone abusing the system because of the lack of regulation. I thin it's impossible to undo the damage that was done in the past 10 years very quickly.
I will say this however, the biggest problem I see as a mortgage lender is in the perception that the public has with regards to their ability to obtain financing. I will admit that it is much more difficult to get a loan these days than it has been in a long time. There are many people that can get financing and are reluctant to purchase a home because their perception is that they will have a difficult time to get a loan. I also believe that many buyers are reluctant to "pull the trigger" because they feel that they will get a better price if they wait a little longer.
What has to happen for the perception to change?
Wednesday, October 22, 2008
Tuesday, July 15, 2008
Making the adjustment
Let me start with a little history. I own and operate a mortgage banking company located in Long Island, NY and have been in business since 1987. I have been noticing lately that I have been filled with fear and foreboding because of all the crap that has been going on in the world and especially in the mortgage indusrty. I have been through some tough cycles in my career but as I look back I realize that in the past down cycles, conditions in my life were different. Therefore, I was not as gravely affected as I am today.
First of all, I was younger and much less tied down by obligations. Yes, I was married but our children were toddlers and much more controllable. The interest rate on our mortgage was 10.25% but our mortgage balance and real estate taxes were much, much lower. I worked from my home as a mortgage broker so the overhead was very low. Today, my children are 20 and 19 and are attending a $37000 a year college. My wife and I have had to help them financially with cars because you simply can not exsit on Long Island, NY with a vehicle. Taxes are higher, food costs more and health insurance is through the roof! Things are just different. So what do we do? How do we make the adjustment?
Please share ideas and let us know what adjustments you have made in your life to enable you to thrive during tough times. I am really interested in hearing what people in our industry have to say.
First of all, I was younger and much less tied down by obligations. Yes, I was married but our children were toddlers and much more controllable. The interest rate on our mortgage was 10.25% but our mortgage balance and real estate taxes were much, much lower. I worked from my home as a mortgage broker so the overhead was very low. Today, my children are 20 and 19 and are attending a $37000 a year college. My wife and I have had to help them financially with cars because you simply can not exsit on Long Island, NY with a vehicle. Taxes are higher, food costs more and health insurance is through the roof! Things are just different. So what do we do? How do we make the adjustment?
Please share ideas and let us know what adjustments you have made in your life to enable you to thrive during tough times. I am really interested in hearing what people in our industry have to say.
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