Surviving the Mortgage Implosion

Todd Carpenter at Lenderama has a great post about perspective in the current mortgage market. Do some deep breathing, get focused, get intense, and analyze the data:

Most homeowners in today’s market have had a 7% or maybe even an 8%+ loan in their past, and I’m not talking twenty years ago either. You are likely more freaked out about this then they are.

If May foreclosures DOUBLED in your state, that likely means they went from something like .2% of all loans, to .4%. It’s bad, but jeez, a little perspective is in order.

Most homeowners have good credit. If half your loans are for clients with sub 600 credit scores, then half your clients are in the bottom 15% of all borrowers. Think about that.

Stated Income loans are not the most popular type of loan originated. Neither are Option ARMs, or sub prime loans, or 100% financing.

I would add that the MBA continues to estimate the 2007 originations at $2.56 TRILLION–you think you can get enough of that to keep up whatever lifestyle you want!

By the way, that estimate is up from when I built and gave my $10 million sales plan presentation:

Who knows, as Morgan Brown at Blownmortgage.com points out, our panic may even be contributing to mortgage customers hesitation and jeeters in getting into the right mortgage for a changing market.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s