Mortgage Brokers Doomed?
I’ve hit this topic a couple of times and from different directions lately, yesterday it was driven home to me by a long time mortgage broker I know fairly well, from up in Oregon. He’s taken one hit after another like most mortgage brokers have, except yesterday he told me after more than 2 decades in the biz, he’s hanging up his spirs for good.
The latest ‘mortgage reform’ legislation working it’s way to Law – from committee, through the House and now up to the Senate; on the heels of the nationwide changes in appraisals (HVCC) had dealt a blow to many – today (from all I read) they’re running for the hills en-mass – when I know a better way.
I remember back when my own company was a small sized mom & pop shop … we had no warehouse line of credit (back then they were very hard to get with only a small handful of players nationally), the traditional secondary market collapsed as did the mortgage insurance industry … mortgage brokers were dropping like flys all around me, I was terrified. Considering unlike these days, mortgage brokers back then, had their life savings, their credit, most pledged their home’s equity to keep them going, every dime invested in their company’s furniture, fixtures, equipmemt, large commercial space lease, salaried payroll personnel (no commissions), employee benefits, equipment leases on copiers, faxes, computers, telephone systems, etc. Finding qualifiable customers was challenging, real hard work – had to spend quite a lot of money to get the phone to ring with a potential borrower inquiry.
I knew to survive, I had to "bob & weave" and REAL FAST too! As all of these issues came together, I knew I needed to become LUCKY (LUCK = that point in time when determination and hard work converge). I did not have the luxary of running for the hills, I was trapped and HAD to find my way out – I did.
Saturday June 20th right here in Southern California, if you want to hear how I did it and therefore draw the easy bridge to your situation today so you can too, sign up for our Secondary Market class and I’ll show you how to become a mortgage banker/servicer, find all new previously unknown investor/buyers and replace the puny MI companes you use with solid and more sizable organizations. Learning the most important sesson (you’ve missed so far in your career) once and forall – when your borrowers punch your investor/buyers in the nose YOU BLEED!
