As we talk about important issues like the economy, the mortgage market and regulatory issues like YSP, it reiterates to me the need for partnerships and participation. As the government, especially in an election year, will no doubt have more say in our world, it behooves us to see how we can work together on it.
I was just in my car and was listening to a show on public radio, no reflection on any personal opinions, just happened to be scanning and heard the word “mortgage” so I stopped to hear what they were saying now. The speakers were pretty good and talked to borrowers about things like; is it really the right time to buy? I can make my mortgage payment, but are rates at an all time low yet? I want to make sure I hit it right! I don’t know about you, but does it seem that we are turning some sort of corner? Albeit in a 70’s Pinto…if this is how you are starting to feel, why do you think that is? The fed interventions, maybe, the stimulus package, doubtful, but the notifications did come out to us about that check! …what about other factors like the realtor commercials; “Now is the right time to buy”? What about all of us talking to our friends and families about the fact that home prices AND rates are low! Now is a good time to buy!
My thought is there is a real opportunity for so many things. Learning about affordable programs to educate first time home buyers, talking to your communities about local market conditions and how the combination of low rates and home prices is a good thing. Working with homebuyers on their current financial situations and seeing how you can refinance them into a more sustainable program? There is certainly a place for lenders to participate as well in educating our originators on all of the above, but we have to rely on each other to get there.
Some good programs can be found through your local broker and lender associations. As licensing for loan originators is being focused on, education plays a key component. Talk to your associations and see what they are offering this month. MBA also offers a lot of good training, especially programs like FHA which many of us can use. There are other great programs that help us understand the broader financial picture of our borrowers like; www.cmpsinstitute.org and another non-profit I already mentioned, www.lenderswhocare.org
Check it out and lets continue to help each other continue to be great professionals.
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{ 6 comments… read them below or add one }
\”What about all of us talking to our friends and families about the fact that home prices AND rates are low! Now is a good time to buy!\”
If that is true in your area, in mine it would be a flatout lie.
Not sure what part doesn’t apply but that is where your local associations and partnerships would be able to work with you on what the opportunity might be
You have a great attitude towards the situation, however I think we are all a victim of passing the buck. No one wants to take any responsiblity for the current real estate slide, and mortgage debacle, so few want to work together.
Responsibility… Funny, here a while back people were referring to the “R” word. Unfortunately they were talking about recession, if only it could have been responsibility. I cannot responsibly tell someone that it is a great time to buy a home. At best, maybe if they are lucky, and get a very good deal, they won’t get burned too bad. But it’s all local, right?
What I see as the real cause of our current strife is the lack of knowledge for all of us. Responsibility cannot be met without knowledge of a situation.
I’ll give you a good example of what I am talking about . My own daughter is buying her first home right now. She is in her mid 20’s, worked all through college and is now buying a home that 6 monthis ago was priced much higher, but has been reduced along with the added benefit of a state bond program whose rate is 4.99%.
For her situation, as a first time home buyer, the combination of reduced home prices and a terrific rate will mean that her new home will cost her only 100.00 more each month than her current rent payment, and once she is able to deduct her mortgage interest, she will be way ahead of the game.
If this isn’t a positive example of what I see happening in some local markets, I don’t know what is.
The intention of my post was to stimulate knowledge and opportunity so that we can help educate each other in a time that is chaotic and difficult for many. I understand that it may not work for everyone, but my attititude is to see what I can do to create thought around what we can control vs what we can’t. Hope this will stimulate something positive.
“Responsibility cannot be met without knowledge of a situation.”
How true!!! So perhaps your knowledge of WHY the interest rates are so low is far superior to mine. The only reason I can think of for the low interest rates, in the face of food inflation and famine, (Rice prices up 30% in one month! Bread shortages in Egypt! Food HYPER-inflation in the Philippines! In Asia rice prices are shooting up almost daily and farmers fields are robbed during the night!) would be to save the GLOBAL financial system from a major meltdown because of our selfish, greedy, and irresponsible loose fiscal policies. God help us if we’re just keeping those interest rates low so it will be a great time to buy a house.
“A global rise in food prices has led to several outbreaks of civil unrest in West and Central Africa over the last few weeks. In Cameroon, Reuters reports that at least 24 people have been killed; over 1600 people have been arrested since February 25, and already 200 have been tried and given jail sentences of up to three years. Civil society organizations have protested the secretive summary trials.”
My children have been told that No, things are not good. We really screwed up. And it’s only just beginning. Pray for us all and stay out of debt. Help others, because what goes around comes around.
My all time most flattering comment was from my oldest son, who said that I was the most positive person he knew! : ) My reality is positive, that from what is to come we as a nation will finally grow up, and accept responsibility.
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