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Q: is the market is good for mortgage broker right now? ( No Answer,   2 Comments )
Question  
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?
Answer  
There is no answer at this time.

Comments  
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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