Residential Loan Originator

Reasons to re-consider Lending as a career:

We are poised for a gradual turn-around
Lowering rates will be eventually felt due to Fed cuts in Discount and Fed Funds Rates
Loan Limits are up
Opportunities in foreclosure avoidance
Homes are becoming affordable
Investors are looking for opportunities
Rents locally are on their way up
2 Years supply of homes
Unemployment is stable
Local economy is strong
Strong Buyers market
The bottom may be now
The competition real estate and loan origination has weakened
Time is ripe to position and target prospective clients

Why is business is so slow?

A bank’s lack of confidence in lending on any present day investment is reflected by tighter credit and underwriting standards. The relentless pumping of billions of dollars of liquidity into the credit markets has not eased lending standards but to the contrary. Investment banks are waiting for the rating agencies to determine the new risk-priced standards.

What is the tipping point of consumer confidence?

Timing is everything. When the rating agencies are confident, the investment banks will be confident, and once the consumer or borrower is confident the markets will start to come back. The day confidence tips over will be too late for late for new entrants to capitalize on. Professional Loan Originators will have completed their marketing, set targets and goals, established a well connected network, and positioned him or herself as an invaluable resource and an expert in the field.

What's today's pitch?

Get the word out to the investment community that the new assets and newer loans coming out are based on a return to real, strong fundamentals. And that although there has been a sustained move to tighten credit and underwriting standards, there is a glut of money to lend. The locating of qualified funds for our clients is our trade.

What's a Loan Originator's continued responsibility?

A responsible loan originator knows that arranging a loan that a borrower cannot repay is not only bad practice, but it can also lead to potential legal liability for the originator. “One size does NOT fit all.” Intelligent financing is NOT about pulling the wool over the public’s eyes with false advertising; it is not about predatory lending and making loans at all costs. As a mortgage professional, you should always operate within the requirements of the federal Fair Lending laws.

Is our valley’s economy in a recession?

According to the San Jose Mercury News, Silicon Valley is not in a recession due to four reasons. Massive growth in green technology is helping local clean-tech companies thrive. Tech companies have been piling up cash, so tightening credit markets haven’t affected them. The national downturn hasn’t yet spread overseas, where many companies do most of their business. The falling value of the dollar means American products cost less overseas which helps in boosting our exports and narrowing the trade deficit.

What is the result after "Hurricane Catastrophe"?

The perfect storm that conspired to get us here, namely the credit crisis and the housing contraction, will soon run its course. From mid-2006 to present, the storm that pulverized many banks and hundreds of non-institutional lenders leaving many clients and their families homeless or financially strapped in its wake may begin to break-up. Although the Economic Stimulus Plan of 2008 along with any further legislation and regulation will forever change the business lending landscape, it may serve to help consumers overall and eradicate predatory lending.