Laissez les bon temps rouler! I am so glad that the good old days are finally back. I'm not minimizing the economic turmoil that many of us find ourselves in, I'm just glad it is finally business as usual.
I'm not a Realtor. I'm a mortgage guy (gal). Thankfully, I do not deal with negotiating short sales or REOs. Thankfully, I do not have to deal with sellers who think their homes are worth thousands more than they are. I might be writing a different post if I was a Realtor. I got into this business when the highest LTV available was 90% unless you qualified for a government loan, when 7.875% with 2 discount points was a great rate, when (gulp) you had to document all your income.
The longer I stayed in the mortgage business the less sense it made. It was like working on the midway at a carnival. Hucksters and rubes running the show. The lights were bright, the noise overwhelming, the lure irresistible. It gave me a headache. I always loved the mortgage business. Every loan is like a puzzle. You're given the pieces and have to put it together. It takes superior knowledge, a clear head, excellent communication skills and creativity to be a good mortgage guy. No fun house mirrors required. It stopped being fun for me several years ago. Honesty didn't matter, common sense didn't matter, knowledge didn't matter. I actually talked with other mortgages guys who told me they made all of their loans through stated income products because they didn't know how to calculate income. Lie down with dogs, wake up with fleas.
I had more respect when I sold used cars than I did the last few years as a mortgage guy. "Step on up young man. Try your hand at the real estate game. You don't know how to play?? Well never you mind, step on up and win that pretty lady you're with a prize!" No wonder no one trusted us. No wonder I felt beaten and down trodden.
What has changed? It was so gradual I almost didn't notice it. I was sitting at my desk, figuring out the income for a self employed borrower. Adding depletion, subtracting business paid expenses, recalculating depreciation. This is laissez les bon temps rouler??? YES! I finally feel like a true professional again. My expertise matters again, my hard work will be appreciated by my clients and my investors.
I am thrilled to be a mortgage professional in a time when true professionals are greatly needed. I am thrilled that the lights have dimmed, the cotton candy is gone and the bearded lady is buying up investment properties in Florida for pennies on the dollar rather than selling mortgage loans. I am thrilled that you all are here with me. Let the good times roll my friends!
Beth - All I can say is let the good times roll, now where is my drink for it is Friday.
Beth, that was a good read. I really like the way you write and the analogies are so apropos!
You mean I'm going to have to learn to read a ... TAX RETURN? One guy from MGIC recently came by and said that back in the day, when they got a self-employed borrower's file in, and it was more than 3 inches thick, they just approved it on the spot ;-)
I have always thought the financial community is way off base with the hassles given to the Self-Employed. In my opinion those that rely on themselves to produce income are much better equipped to repay loans then the W2 wage earner that is a week away from broke!
Beth..... it's been fun even when times were down. But seriously, I know exactly what you mean. I love it now more than ever, because most loan programs are fixed, and you need more than a credit score.... I was down in the dumps for 4 years, from 2002 to 2006 because there was so much business, but I was making less... so many loan officers where just over promising and under deliver, because they had so many programs to choose from. Bait and switch was up there.
Well, it still happens, but not as much. If I sense it and can pick it out, I can get the clients to ask the right questions.... and bingo, I keep some of them also. On another note, I just got a client last week from a blog in VA, who was going with a local Countrywide rep... but she read my read flags post and thought it was good.
Red Flags !!!! beware of these....
Well, the other loan officer used taxes of $200 a month. When I interviewed the client, I asked what price range they were looking in... what they wanted to keep their payment at.. and what was the property taxe range for the properties that they were looking at.... she said $300 to $350... so I used $350. Well, gee.... that other loan officer's payment is going to be $150 cheaper than mine. I pointed this out to the client and she agreed.... and wasn't happy with this. Well, I just sent her an application.
Lastly, you said this.. "It takes superior knowledge, a clear head, excellent communication skills and creativity to be a good mortgage guy." You forgot ....Mortgage Gal !!!
PS... when are we doing the 5MF??? And ps... congrats on the other thing... that other company? FHA mortgages.... etc etc..
Beth - What is Jeff talking in code? 5MF? (Is that 5 mother .....? oh, never mind) And congrats on what other thing?
Sandra- How could I forget?? I'll have to do 5MF and post a little later on. Have dano pour you a glass of wine or head on down here, you know I have more than enough to go around!
Thank you so much Lanette! That is very kind of you to say.
Steve you made me laugh out loud! You know excatly what I'm talking about. How about the good old days when you knew you had a doggy appraisal so you held it out of underwriting until the end of the month when no one would have time to review it.
Dan I actually find myself agreeing with you. How odd. :-) I think the fix for that is to allow for higher debt ratios for the self employed or some type of consideration for cash flow.
Belonger, don't you just love to win with your smarts and honesty??? Hey, we'll talk about 5MF and other things soon.
Sandra all will be revealed in due time. 5MF= Five Martini Friday
Beth - Your best post to date. Actually, this happens to be one of the finer mortgage posts I've read in some time... in my humble yet significant opinion:-)
I started a couple of years after you so when all this started going down I said, "What the heck is going on?" As time grows on, it makes more and more sense. I was talking to Barry (the appraiser) today and he said that when he started in 1988 it was exactly like this. You think things are correcting themselves? Hmmm, I just wish Uncle Sam would realize that.
Now where's the freaking star?
Sardi my friend, you ain't seen nothin' yet! As for the correction, I do certainly hope so. I think people get tired of the news, the gloom, the doom and when they do they'll start buying again. Heck every girl knows a good shopping trip cures most problems...
Very true Beth. We've been working with professional lenders for years that know what to do, and they tell us the same thing.
Thanks so much for the comment Gabe. It's always nice to hear that others have the same thoughts I do. Maybe that means I'm not crazy. :-)
Doubt that @ Forbes.
Beth - You should watch what you say, otherwise in 4 hours you might have someone knocking on your door.
Come on down to Allentown! I have a lovely glass Pinot Grigio with your name on it Sandra!
Beth .... That sounds wonderful! Don't tempt us! Do you also have some Heineken for Dano?
But of course! Scott couldn't bring himself to drink it. It doesn't taste like horse p*ss so he's not interested!
shouldn't you be seeing to Dano's dinner about now??
Eeew...Remind me never to ask Scott for a drink recommendation.
Please the man ate already, it should hold him for a couple of hours.
This will be my first Saturday morning in a long time without a scheduled run... I'll be pacing back and forth waiting for a home cooked breakfast!
lol - go to Beth's house, she cooks breakfast.
Beth.... looking forward to it. Ask Scott to call me over the weekend... I sent him a few e-mails. thanks
Beth - I found this after reading another of your posts. I like your attitude and your writing style. This is definitely the time for professionals to shine. Regardless of the fact that you are associated with Sardi, it is obvious that you one such professional :)
That's very kind Erik. Don't tell anyone but I'm the one who gave young Sardi his start in this crazy business. Thanks for stopping by!