Good morning: I was reading my local paper the Seattle Times (www.seattletimes.com) this morning and saw a national release that stated that mortgage originations would fall by 18% in 2008. The prediction was that the market wouldn't start to correct until 2009 at the earliest. I think they're right. Yes, I know, it's important for us to all stay positive and I, for one, love my job and have not let the negatives impact my business. I also believe that we need to be realistic. Obviously, times have changed and we need to adapt with them.
It's a funny world out there right now. I have borrowers who can't quite seem to get off the dime. Whereas, before, it was a loan frenzy where everyone felt they needed to refinance right now. Today, borrowers can't seem to pull the trigger or make up their minds. Understand that I always urge caution when a person needs to borrow money but too much hemming and hawing is a waste of everyone's time.
Last night, a friend of mine (he's a real estate agent with John L. Scott-www.johnlscott.com) got a call from a borrower who is in distress. At least two months ago, we sent him a postcard because he was in pre-foreclosure. Last night, he called and said he had one week left. He's trying to negotiate with the lender at this point because we may have run out time to help him. My message is this. Borrowers, if you're in a loan that is set to adjust or you're behind on your payments, don't wait until the last minute. With the tougher lender standards these days, there may not be help for you.
Obviously, there are a number of reasons loan originations are off. Tighter lending standards is a big one. A lot of it has to do with our own attitudes about how tough the business is these days. Well, get used to it! I know loan originators who are doing just fine because they're rolling up their sleeves and getting back to work. It's a tough business anyway; now we really have to earn our money.
In closing, good luck to all of you out there. Things will turn and there are bright spots out there, especially for those of us who are willing to get after it. Have a great day!
Paul
Paul McFadden
'I also believe that we need to be realistic. Obviously, times have changed and we need to adapt with them.' Love these two lines! An 18% drop should be relatively easy to swollow. The pie is and will be certainly smaller. Yet, fewer folks are looking for that desert than before. We believe the same piece we've always had will still be there! W'll just have to work harder and smarter to get to the table.
Micheal - I concur - NOW would be a greart time to implement State or National Licensing requirements.
Thanks, Scott. for your comments. I agree with you wholeheartedly!
Thanks, Richard. Every day I remind myself how lucky and blessed I am!
Michael: In Washington state, we are required to be licensed. I think it's a good idea. it's funny how the market always determines whether people stay or go.
Marty: I love your positive thinking. Amen to you! May all of you have a great day!
Paul