Washington Mortgage Planner-straight up mortgage advice and commentary

Hello all: I was reading this morning that the number of banks on the FDIC's watch list increased to 117 from 90. Expect that number to go higher still. So far, 9 banks have failed this year, which is twice as many since 2005. I think this goes to show that we're not our of the woods yet. The last time there were this many banks with problems was in the early '80's when the savings and loan crisis caused over 2,000 banks to fail.

As with anything, it's going to take a while for things to run their course. I'm thinking at least another year. Even up here in the Pacific Northwest, there are signs of trouble. Every bank has bad loans on their books from real estate builders and developers. And their stock prices reflect that. We're pretty slow up here with purchase activity. It's like the buyer is waiting for some good news before jumping back in.

How is it in your neck of the woods? I know some areas such as Las Vegas and Los Angeles are seeing increased sales activity. Up here I think there might be more sales starting either Spring or Summer of next year. Until then, it's imperative that we do everything we can to let the customer know that it's a great time to buy! Have a wonderful day!

I was just invited to join the new group "toot your horn" here on Active Rain and am excited. Thanks Bo for inviting me-I appreciate it. In our business, it's critical to "toot our horn" yet we're not always clear about how to do that. If you're like me, you shy away from being in someone's face like those obnoxious TV and radio ads we see and hear.

But I think you'd agree with me how important self promotion is to our business. I don't know about you but I do "toot my horn" quite a bit; I just always hope it's in a nice and unobtrusive way. So keep self-promoting. It's key, especially in our business today. Have an awesome day!

Paul

Hello all: I was thinking today about Fannie Mae and Freddy Mac and their recent announcements of billions in loan losses. Today I checked their stock and it was trading at $5.19 and $3.29 respectively. These are off highs of well over $40 each. Alot of pundits are wondering if these two essentially government entities will survive and, if so, in what form.

I imagine the government will have to swoop in and bail these two out. That's not a bad move although I wonder if they would have survived on their own. We're obviously in the midst of an unprecedented crisis yet I believe the carnage is almost over. Starting with Countrywide's troubles last summer and culminating in bank failures and probably consolidations, I believe our market is correcting and policing itself.

I still think that it will be until next year before the mortgage ship rights itself. But I'm encouraged when I hear home sales were up almost 4% in July. Sure, people are buying due to others misfortune (foreclosures, etc.) but the market seems to be rebounding. I'm curious what you think. What are you seeing in your marketplace? Up here, we were hit last and possibly the softest compared to other parts of the country. We'll be feeling some pain into next year for sure. That's it for now. Have a great night!

Paul

Good morning! I was thinking about what I do when things get slow. What do you do? For a while, people in my office moped and complained about how slow business was and how much they hated what they did. Now, there are so few left (we're down to 5 from a high of 16) that it's a lot quieter and not as much of a problem.

I consider myself lucky. For some reason I was chosen to do what I do. And I love it. Yes, business could be better although at the moment I'm working on more loans than ever. I think the key is I don't really allow myself to stop and think about where I am. And, compared to others lot in life, I'm a pretty lucky guy!

I'm curious what you do when you find yourself with little or no business. Do you tell yourself you need to have coffee with someone, pop by someone's place of work, or send a thank you note to someone you appreciate? I think there are all kinds of ways to keep the fire lit. The key is to take action and remind yourself of why you're doing what you do. It doesn't necessarily mean it's going to be easy. As we all know, we're in uncharted waters and  it may be a while before we turn the corner.

Again, I'd like to hear your suggestions. Today I'm ready and raring to get to work. But who knows about tomorrow? Every day we need to find something that keeps us going. Have an awesome day!

Paul

Good morning! I was thinking this morning about my time on Active Rain (since June 2007) and why I blog. Obviously, I'm interested in your thoughts too. I'd have to say there are several reasons. First, Betsy Talbot of Delegate Now! who told me about Active Rain said it would help increase my profile online. That was true. The second reason is I actually like to write and share with others my thoughts. I had been composing my own e-newsletter for about a year before this so blogging was not that big a deal.

My blog hasn't led to any deals yet; I read about the occasional Rainer that has been found. If I were to pick up a client from Active Rain, that would just be icing on the cake. I enjoy reading and commenting on other blogs and it's fun to garner points (I'm a little competitive!) but the biggest reason I'm on Active Rain is to communicate with my peers, most of whom know alot more than I do! And blogging allows me to occasionally offer up my own opinion, take it or leave it!

So why do you blog? And if you don't, why not? I'm just curious. For me, it's been fun and I've made some great new contacts and learned a lot. I hope you'll share your success stories. Have a great day!

Paul

Good morning: I had the privilege of attending a seminar sponsored by my company yesterday about surviving and thriving in today's real estate market. The speaker was Rick DeLuca who is a good friend of Brian Buffini. For more on Rick, go to www.rickdeluca.com. The message I got out of there, and there were many, is the power of relationships.

Rick DeLuca indicated that relationships are what caused him to build a successful real estate business in Reno, Nevada. A former cop, Rick understood the value of communicating with his "bullseye" customers frequently because they were the ones that appreciated what he did the most. It didn't mean they necessarily did business with him. Rather, they were excited for his success and there was no hidden agenda.

Wow! What a concept. It seems to me that the last few years were too good to us here in the real estate business. I know alot of people in my business who went from transaction to transaction and forgot about building and maintaining relationships with their network. Now they're done; they're out of the business and doing something else.

Rick DeLuca's message was clear. It's all about relationships. And we shouldn't be keeping score. We should want to spend time with people who we deem to fit our values, etc. The rest will work itself out. Rick related about how he's starting to do business with his son-in-law now who is a realtor in Bend, Oregon. His son-in-law paid his dues and has earned Rick's business. I'm finding the same thing is starting to happen in my business. People are recognizing that I'm here to stay and, hopefully, that I have their best interests at heart.

So if you're out there building and maintaining relationships, good for you! If you've let this slip by the wayside, it's not too late to get going again. It's the key to your success! Have a great day!

Paul

Hello: I thought it was time again to write a consumer-oriented blog as it has been a while. So here goes. If I were the customer I would:

Start my research online for a realtor, loan officer, etc. Why do I say that? Because most of you do anyway and it's a quick way to educate yourself about home values, interest rates, etc. I heard a statistic that as many as 85% of you start your real estate hunt online. Message to real estate professionals: Have an online presence if you don't already! Alot of us don't necessarily care for everything Zillow has to offer (www.zillow.com) but let's face it, Zillow is extremely customer friendly.

Next, ask yourself what's most important in working with someone who is going to help you with your real estate transaction. If it's the lowest rate and fees, then there are discount brokerages out there that fit the bill. They may even be out-of-state but if that's what you're after, that would be the way to go.

If you're looking for a local presence with personal attention, then you should take the time to get referrals from friends, family, and co-workers to at least one real estate professional. I remember when my wife and I bought our first house (I was not involved in the business at that time) and we interviewed 3 realtors before deciding on one. We were in a hurry to buy as our lease on our rental was ending soon. Ultimately we chose a realtor who indicated she had the time to help us. The other two were one, part-time and two, too busy.

Depending on your time frame, take the time to talk to more than one real estate professional. Ultimately you'd like to find someone who you connect with and knows the market. I could tell you to find someone experienced but I think it's even more important to find a real estate person who knows the current market and, if they don't, is not afraid to say so and get you the answer. In my business, things are changing every day. I'm finding that people want to work with someone they trust and know will be around tomorrow in these uncertain times. A mortgage professional, for example, should know about the most current loan programs available, interest rates and what determines them, and how credit scores can effect your loan. Personally, I like to meet all my borrowers. Yes, it restricts the areas I can loan in but it allows me to see if a longer-term relationship can be developed. I think we all yearn for that.

I realize so much of this is common sense but then I hear the horror stories about real estate deals gone bad. And it puts a blight on our industry. In summary, I hope this helps. Remember once/year you can check your credit for free at www.annualcreditreport.com. Good luck and have a great weekend!

Paul

Hello all: I was thinking yesterday about my year-to-date so far and wanted to ask you the same. I expect to do better than last year although I've only been in the business for a couple of years so my business is still growing.

How are you doing? Are you seeing your market start to turn? I have to admit I'm behind the goals I set at the first of the year and have not worked this hard for quite a while. But I'm not discouraged and just keep plugging. In fact, it looks like I'll have my best month ever in the business next month.

Although I don't expect our market here in Seattle to start improving until sometime next year, there are always opportunities. One interesting thing is because of all the attrition I actually have more opportunities than before. I think a borrower wants to do business with someone they trust and know will be around tomorrow.

If you're unsure if you still want to be in this business I suggest you either re-commit or try something else. I know that's a little harsh and I'm sorry. But I've seen too many people hang on (including a co-worker of mine who thinks he can be effective working a new full-time job along with being a loan officer) due to pride when they should focus on what they do best.

For those of us left, I wish you luck. Do something every day that lets your customer know how dedicated you are. In the mean time, have a great day today!

Paul

Hello all: I hope you're enjoying your summer evening wherever you are. Although I've had the luxury of taking some time off recently (understand I finally decided to do this as opposed to needing it, etc.), now it's back to work. The fact of the matter is this. Every day I have conversations with my network and they're working.

In my mind, the only thing that has sustained me during this so-called meltdown is the fact that I've just kept on working. One of my colleagues here, Bo Hussung, talked about the importance of having a good attitude toward what's happening. I agree; it sustains us. Granted not every day is fun. I find I'm working harder than ever to get deals done and, even then, alot don't. But the key is to keep working. Whether it's making phone calls to your database, thinking about your next marketing piece or having a face-to-face with a contact, we know what needs to be done.

I started in this business two years ago just when things were starting to slow down. But I went to work and treated my job as if it were a lifelong profession. That's what we need to do. I can't tell you how impressed I am when I meet a realtor with their badge on or a loan officer who knows their stuff. We all want to work with folks like that.

So if you're wondering about what you need to do, I want to encourage you to get back to work! I know it's tough out there but good things happen when action is taken. Good luck to all of you. May you prosper!

Paul

Good morning! I'm headed out for another 5 days of R&R and am amazed at my ability to take time off; especially since all of a sudden I'm pretty busy.

My point is that all of us are afraid of taking time away because we might miss out on a deal or feel like we're not responding to our clients fast enough. I know I am. I used to have a tough time being away because I thought I might miss something. I'm here to tell you that I think it imperative that we take time off. It recharges us and allows us to appreciate other things besides our work. Let's face it. We have a job that can feel like 24/7 sometimes and it's so easy to get trapped and working all the time. Then we risk burnout and resentment that we can't get away.

So my advice to you is take a day off if you haven't recently. Or take a vacation if it's been a while. Your job will still be there (hopefully) upon your return. The last time I went on vacation (a couple weeks ago) I got all kinds of inquiries for mortgages which was a nice surprise. I told my wife at that time that I ought to take more time off! Friends of mine take quite a bit of time off during the year and they're realtors. They do cool things like trips to Mexican villages and looking after other people's kids. I frankly admire their sense of work and play.

So take some time off! What have you got to lose? Have a great day!

Paul