August 2009 - Community Commentary

Instead of asking if we are stealing from future demand, maybe the better question is will there be any future demand? If you agree with ex-FHFA regulator James Lockhart's outlook..will that demand even be able qualify for a mortgage? There are bigger problems than the expiration of the $8,000 tax credit. Maybe those issues should be addressed too.

Solid real estate agent relationships are the cornerstone of any professional loan originator's business plan. While the mortgage industry has done an excellent job at consumer direct marketing, home buyers still consider the real estate agent the "gatekeeper of the transaction" and even rely on them for advice on financing. This is especially true in the first-time home buyer market.

I use transparency as a weapon against the banks. I walk into a bank branch and snap a picture of their mortgage rates, on the lobby sign. I e-mail that picture with a copy of the wholesale rate sheets (from the same bank), and SHOW THE CUSTOMER HOW MUCH "SECRET PROFIT" THE BANK IS MAKING ON ITS MORTGAGES. I explain how yield spread premium can lower the portion of the mortgage brokerage fee they pay me. Sometimes, I lock the loan with the same bank and laugh along with the customer.