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Subject:
is the market is good for mortgage broker right now?
Category: Business and Money Asked by: spdy-ga List Price: $2.50 |
Posted:
09 Sep 2006 10:14 PDT
Expires: 09 Oct 2006 10:14 PDT Question ID: 763673 |
is the market is good for mortgage broker right now? |
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There is no answer at this time. |
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Subject:
Re: is the market is good for mortgage broker right now?
From: jack_of_few_trades-ga on 11 Sep 2006 05:45 PDT |
No. The housing market is slowing down so fewer people are needing new mortgages. Interest rates are rising. In the very short run this is good for brokers because people in Variable and Adjustable mortgages are getting scared and refinancing to more stable rates, but once this rush is over the number of refinances will drop very rapidly. |
Subject:
Re: is the market is good for mortgage broker right now?
From: marketingexec-ga on 16 Sep 2006 14:06 PDT |
I'll give the opposite side of this discussion, working in the mortgage business from a lender's point of view. The business is stable: - Oil prices are down - Interest Rates have actually gone down and may remain flat - Inflation is low - Consumer confidence is up Over the next 2 years you'll see the following: 1) 2007 - contraction of the # of loans for Refi. This will cause overall lowering in the Total Volume of loans. However, the purchase market both prime and subprime will remain stable. 2) 2008 - increase in the # of loans and refi slight increase. Purchase remaining flat as it typically does. The question you need to answer is not: Is it good for a broker right now. Becuase it is always good for a broker. Brokers typically have low barriers to entry in all markets save a few. The question is: Can you creat a broker shop with the talent and compete in a market during the refi contraction. Suggestions: 1) Serve all credit spectrums. This requires a diverse sales force of subprime and prime Loan officers. 2) Create relationships with top ties lenders that will weather the storm. Those lenders focused on Refi - will not have the purchase products or credit spectrum to help you. 3) Incorporate technology, use lenders with great technology. Online loan programs and pricing such as NewCentury.com and FastQual. 4) Create relationships with renewable sources of leads: - Realtors (since purchase business will be flat and steady) - CPA/Attorneys/Financial planners 5) Identify low cost sources of high quality leads. - there are many list sources to buy or get transfers. We may be headed for a refi boom in 3 + years. Set your foundation now. |
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