Posted by Shannon_Va on 8/8/07 10:02pm
Msg #204634

Lenders shutting down

Everyone keeps wondering why it is so slow right now.....
It isn't just here in Virginia, I suspect it is everywhere....
With the lenders shutting down, such as American Home Mtg, and I got word today that Aegis is closing, National City & Wells Fargo sub prime & equity line dept. are not taking new apps or funding because they have exceeded their limits of lending, I was also told that CitiMortgage is in the same boat. The wholesale market for the lenders is really sinking....
It really sucks but I am being positive in that it just can't stay like this. I think the year end months coming will be bad, but I really feel the spring will be so much better.

JMHO, but if this is your full time gig and it just isn't doing anything, what is the harm in getting a temporary job just to get by, even if it is just part time. But not in the title industry of course.....

Keep your head up everyone....things will get better

Reply by JohnnyB on 8/8/07 10:06pm
Msg #204635

Why do you think the spring will be better?

Reply by Shannon_Va on 8/8/07 10:07pm
Msg #204636

The market has to bottom out at some point. I just think it is about there. It can't keep going down...everything has to cycle around at some point

Reply by JohnnyB on 8/8/07 10:10pm
Msg #204639

Let's hope you are right

Reply by Ronnie_WA on 8/8/07 10:40pm
Msg #204642

I'm hearing the same from mortgage brokers in WA. They're really hurting and scrambling to find somewhere to place their loans. One of them told me today that Washington Mutual now requires a minimum credit score of 650 and a maximum loan to value of 65%. They estimate that knocks at least 90% of potential borrowers out of the market. The major national lenders I have spoken with are not anticipating an easing of the market in the foreseeable future.

Reply by JanetK_CA on 8/8/07 10:43pm
Msg #204643

I've heard some "experts" quoted as saying they expect the market to pick up some time in 2009. But, obviously, no one has a crystal ball.

Reply by Lee/AR on 8/9/07 5:53am
Msg #204662

When interest rates exploded upwards in the 80s, the years from '83-'86 were almost completely dead for r.e. sales, refi's. Prices bottomed out & then some. Only the truly desperate were either buying, selling or refi-ing. It took almost 10 years for the cycle to make one revolution. I hope it is shorter this time as the reasons are different--but still similar. (The ARMs are adjusting to interest rates similar to the mid-80s.) I hope you're right about a quick recovery, but my experience says otherwise. It's just not a pretty picture out there now.

Reply by BrendaTx on 8/9/07 6:20am
Msg #204663

I agree Lee. I chose a year ago to quit betting on my signing agent business and found a day job in the industry. Daily I get calls and emails from people in Texas looking for tips on how to make a business as a notary in Texas. I got nuthin' for 'em. Not trying to be ugly but it's not a time to start this business.

Where do people think the business we do (did) comes from? Mortgages! It's from mortgages and if there's no lending there's no business. In Texas you cannot easily do HELOCs and that or reverse mortgages is all there is here.

At best you are looking at a few hundred a month if you get into this business now. I like to buy pretty shoes and eat. Right now, the income from being a general mobile notary might pay half an electric bill but it's not going to earn what's being promised by the marketers of notary work as a viable business.

If you want to work as an independent agent of any kind related to the mortgage and real estate business you must learn what the market is about and where to find the business...and then be able to sustain yourself for about 18 months while you build a business of inspections, general notary, and whatever else you can cobble together.

Insider warning: Those of us on the "inside" of mortgage, legal and title worry about the stability of the market. I am fortunate to live in a growing area...but in Houston, for example, it is flatter than a flitter. Even here where the university brings rich momma and daddy's money for four years, it cannot last forever. Developers are building rentals that may or may not fill up. Vacancies have slightlyclimbed as prettier and niftier apartments and student condos have been built by market speculators. I should know. Before going to work full-time I inspected just about every "nice" apartment complex in this area and calculated vacancies for three years. Month by month there was a slight vacancy increase.

But, to understand this you'd have to do a lot of market research and and you'd have to understand the language of the handwriting on the wall.

Do not listen to the promises of steady income promoted by those who are seeing the failing market and grabbing your dollars by teaching you how to enter a dead field of no work. If it were all that great they wouldn't have time to teach. Look for work in the real estate related industry in a day job and be ready to capitalize in the future...in about five years.

Reply by DogmongerCA on 8/9/07 8:37am
Msg #204672

They say the market moves in seven year cycles

That my mean that we must endure into 2013. Thirty five percent of my business last month was field inspections, all either mortgage or auto chases. A friend in Vegas said in Clark County said one out of every forty houses is in foreclousre. If you want to make it in this business, better make a plan to get in other areas of mortgage services. Its a LONG time to 2013. JMHO

Reply by Dorothy_MI on 8/9/07 8:44am
Msg #204673

Re: They say the market moves in seven year cycles

I actually saw this cycle starting a couple of years ago. I feel that we are probably nearing the bottom of the trough, probably no more than one more year and we should start the upward climb. Those of us in MI recognize and have experienced this with the auto industry for over 50 years. I will tell you that if the housing/lending market is anything like the auto industry, every it recovers it never reaches the peak it was at at the last high.

Reply by DogmongerCA on 8/9/07 9:40am
Msg #204679

I would hope that you are right

But if you subscribe to the seven year cycle theory, doing the math, your one year down comeback, might be a bit optimistic. By my math, 2012 might be more likely. Perhaps another type of mortgage service, might hold you over until the market turns. JMHO

Reply by ToniK on 8/9/07 11:29am
Msg #204690

What???? National City and Citimortgage going under too??? I have real estate loans with them. So I wont be able to refinance? Ugh!!!!! So if they go under what happens to my mortgages?

As for the Notary full time. I was doing that up until early July. I had to go out and get a full time job just so I can keep my house and put food on the table. Luckily for me I have other businesses that I run but I also see a drop in my ebay business. I sale womens clothing and with back to school, I usual see a jump in sales but lately I cant get nothing off my shelves. hmmmmm

Reply by John_NorCal on 8/9/07 12:45pm
Msg #204697

Toni,
Don't be worried if you have a current loan with a lender that is "going under." In all probability that loan has already been sold and the lender that you make your payments to is only the servicing agent. When lenders cease operating it usually means that they are unable to originate any loans because their warehouse lines of credit are drying up. As for Citimortgage, I seriously doubt they will close their doors. More than likely they will stop brokering loans and only originate loans for Citibank offices. Feel better now?

Reply by Shannon_Va on 8/9/07 2:44pm
Msg #204767

CitiMotgage is not taking apps right now becuase their credit limits are maxed, they are not shutting down, st least not that I heard...sorry for the confusion

Reply by Charles_Ca on 8/9/07 11:54am
Msg #204692

2009 n/m