Hello all: Last Wednesday I attended a seminar sponsored by WaMu. (Washington Mutual) and Genworth. It was packed with loan originators which heartened me. Here are some statistics that were thrown out.
Conventional/conforming loan volume is up 42%. Subprime is off 66%. If you're a subprime LO, you better adapt! How? FHA loan originations are up 33%. Yeah, I know they're more work but it may mean you keep your job and actually make some money. If your shop doesn't offer FHA loans, find a place that does and co-broker it.
The seminar speaker stated that as long as mortgage interest rates stay below 7%, purchases should be o.k. The trend seems to be indicating this. The presenter also said that we are in a hangover that could last for the next 15-18 months. He suggested targeting the following niches. First time homebuyers and, specifically, females. Currently, 63% of first time homebuyers are under the age of 34 and 27% are female. Also, 78% of the homes purchased were existing homes and 84% used the internet in their initial search.
What comes out of the above is our need to adjust and target a growing market if we haven't already done so. Obviously, the opportunity to upgrade our website and approach borrowers about home equity loans after they've purchased their home is huge. Here's another statistic. Home Possible and My Community loan programs (first time homebuyer programs) are up over 200%.
I was reading recently about how successful people are always making small adaptations. With our market changing, I think it's important we do the same. There were a number of great tips in this seminar. There are still loans to be had out there. I remember a conversation I had with a guy at a golf tournament a couple months ago. He said people are always buying and selling real estate. That is so true! Have a great day!
Paul
Paul McFadden
