In the mortgage world it seems that change is part of our everyday life especially in these times. Many times the changes are minor yet tedious and others have been very major and altering to the loan process. The latest change that seems to be taking place at most of the investors that I have been in contact with including our mortgage banking operation is the minimum credit score for an FHA loan is going up yet again. Travel back a couple of years ago and we have moved from No credit score requirements to 500 to 540 to 580 to 600 to 620 and now it is a minimum middle score of 640. So what does this truly mean for the average person that had a 620 credit score. It has been my experience when looking and analyzing individuals credit reports that this will not make a difference for the vast majority of home loan applicants. Someone that has a 620 score can generally pay a revolving account down or take care of a bad account and see a 20 point increase in the matter of 1 month. That being said there are also still ways to do a re-score of the credit report in 72 hours which I have utilized for clients in the past. This change will not make as big of a difference as most might think. It seems as though mortgage loan originators and real estate agents alike have grown accustomed to complaining about any changes to loan guidelines. That being said let's take a step back and look at it with a different point of view...
Without these changes we will see more foreclosures in the future or so the studies have proven. That being said with more foreclosures in a neighborhood we are seeing diminishing or stagnant property values due to these homes being in poor condition or with lower sales prices. The lower sales prices are coming from the banks dumping these assets. As a homeowner or potential homeowner it may be a little more difficult to get a home loan but these increased requirements will have a lasting effect on the overall housing market in a positive way. People that purchase a home are less likely to foreclose which brings stability to your neighborhood. Isn't that we are all fighting for is a stable home market?
It is my opinion that these changes will not hinder someone with a 620ish credit score from purchasing a home if they get in contact with a good mortgage professional and a savvy real estate professional. With the help of both they can still achieve the dream of home ownership with historically low interest rates and remarkable deals on current home prices.
If you are a real estate or mortgage professional ask yourself... Do you want stability in the housing market for years to come? Is this your career or is it a job? A career is a passion and purpose everyday with meaningful value. A job is a 9-5 with tasks yet no purpose long term and a job ends with instability... Instability in the market puts our long term careers in jeopardy because of people fighting for a job...
Thursday, September 30, 2010
Thursday, September 23, 2010
Top Loan Officer Study to Be Conducted
Danny Smith of In-The-Box Development is seeking 125 top producing loan officers to join his control group for a study in conjunction with MuRF Systems Inc. that will identify your strengths and weaknesses and help you produce even more. I have known Danny Smith for a number of years and believe others would find value in the assessment models that he has been using in the past and the in depth model that he is currently working on producing. Here is a copy of the press release:
AUSTIN, Texas (September 20, 2010) - MuRF Systems, Inc. has selected In-the-Box Development and Danny Smith to manage their nationwide Mortgage Loan Officer SMARTS project. In-the-Box Development/Danny Smith will be working with leders nationwide in the selection of 125 career loan officers to participate in the control group. From this control group, MuRF will develop the Mortgage Loan Officer Sales Marketing and Representative Traits Survey (MLO SMARTS). "I have been using assessments for 15 years to help build profitable and well-functioning teams that enjoy working together," said Danny Smith. "In 1992 I started looking at commonalities in loan officers and using assessments in 1995 to help pinpoint what made a good loan officer and what made an average loan officer better. This is going to be an incredible experience and I look forward to the end result and how we'll use the MLO SMARTS to improve funding levels, teamwork, and have some fun along the way." MuRF Systems, Inc is an industry leader in organizational and people development with more than 30 years of research backing up its tools. In-the-Box Development is owned and operated by Danny L. Smith. Danny has 26 years experience in mortgage lending with 15 years of specific experience building high producing retail and wholesale loan production teams. With the use of the MLO SMARTS, mortgage companies will have a pre- and post- hiring tool to assist in obtaining their best loan funding volumes. The MLO SMARTS tool will benchmark existing and candidate mortgage loan officers against the commonalities of top producers and places the individual into one of three categories. The employer will then have additional information to assist in the hiring of the individual and/or giving developmental suggestions for improving the skill level of individuals in loan origination roles. Inquiries into this limited participation project are welcome. Loan officers and managers that have loan officers they would like to be part of the control group should contact Danny Smith at danny@DannyLSmith.com or 512-773-6528.
Make It A Great Day!
Brad
AUSTIN, Texas (September 20, 2010) - MuRF Systems, Inc. has selected In-the-Box Development and Danny Smith to manage their nationwide Mortgage Loan Officer SMARTS project. In-the-Box Development/Danny Smith will be working with leders nationwide in the selection of 125 career loan officers to participate in the control group. From this control group, MuRF will develop the Mortgage Loan Officer Sales Marketing and Representative Traits Survey (MLO SMARTS). "I have been using assessments for 15 years to help build profitable and well-functioning teams that enjoy working together," said Danny Smith. "In 1992 I started looking at commonalities in loan officers and using assessments in 1995 to help pinpoint what made a good loan officer and what made an average loan officer better. This is going to be an incredible experience and I look forward to the end result and how we'll use the MLO SMARTS to improve funding levels, teamwork, and have some fun along the way." MuRF Systems, Inc is an industry leader in organizational and people development with more than 30 years of research backing up its tools. In-the-Box Development is owned and operated by Danny L. Smith. Danny has 26 years experience in mortgage lending with 15 years of specific experience building high producing retail and wholesale loan production teams. With the use of the MLO SMARTS, mortgage companies will have a pre- and post- hiring tool to assist in obtaining their best loan funding volumes. The MLO SMARTS tool will benchmark existing and candidate mortgage loan officers against the commonalities of top producers and places the individual into one of three categories. The employer will then have additional information to assist in the hiring of the individual and/or giving developmental suggestions for improving the skill level of individuals in loan origination roles. Inquiries into this limited participation project are welcome. Loan officers and managers that have loan officers they would like to be part of the control group should contact Danny Smith at danny@DannyLSmith.com or 512-773-6528.
Make It A Great Day!
Brad
Subscribe to:
Posts (Atom)