Posted by CT_Notary on 9/10/09 11:12am
Msg #303402

Future? Any comments?

I used to have a very solid income from my signing agent business. Used to do @ 10 Chase HELOCS, 10 Citi HELOCS and 10 others each week. Things really slowed down about 18 months ago.

Finally thought things were reviving in June and July, but August was slow again and Sept has not started well.

Recent borrs all state that they started the process in March/April and were repeatedly called to provide additional info or to reverify info. Does that mean that there is a huge backlog waiting to work its way through the system?

Maybe the revised paperwork and advance notification requirements are what is slowing things down.

I am lucky to live in area which has only been moderately affected by declining real estate values and many potential borrowers are still "accumulating" assets.

Would love to start an informed discussion about what is going on in our industry!

Reply by BobbiCT on 9/10/09 11:22am
Msg #303409

Return to "normalcy" ...

After many years and with many friends and relatives in the real estate and finance field, I look it as returning to normal. Been here before, which is why during the "boom" months we all banked our excess profits for the lean years.

- People aren't using their homes as a piggy bank anymore.
- People aren't flipping mortgages every year. Moldly oldly "normal" days homeowners refinanced or moved every 5 to 7 years.
- Most lenders have returned to only lending to borrowers who can afford to make the loan payments and who have a history of paying their debts.

Glad to hear you were doing 30 loan signings a week. On the bright side, you were getting far more business than most CT real estate attorneys.

Reply by MW/VA on 9/10/09 11:37am
Msg #303416

Re: Return to "normalcy" ...

I think you said that very well. In addition, we have the recession, new federal & state regs for the mortgage lending industry, and the time it will take for a "recovery" to take place.
It appears a large portion of your business was HELOC's. I haven't seen ANY in a long time and don't know who is still promoting that product. The 20% drop in values kind of did away with some of the equity people were tapping into.
My business was good through July. It slowed down in August, but Sept. is pathetic so far.
I do know that there are a lot of loans still in the pipeline.

Reply by Charles_Ca on 9/10/09 12:05pm
Msg #303419

As a commercial real estate broker and a loan originator I believe tha the nex year will see changes to the way the industry does business that will result in fewer opportunities for making a living for all in the industry. Just look at what has happened in the appraiser community this last year.

Reply by Vince/KS on 9/10/09 12:19pm
Msg #303421

History tends to repeat itself

At least 30% to 40% of the refinance loans I have been doing combine a first and second loan. When the market rebounds, these folks will see a need for a HELOC again. Recidivism doesn't just apply to criminals. Recent changes in regulations for poor credit risks will likely make it easier for those that cannot afford more credit to get it.

Reply by Charles_Ca on 9/10/09 1:14pm
Msg #303425

Recidivism doesn't just apply to criminals.

Nice turn of phrase Vince and how true! Repeat offenders all. Addiction to unbridled spending is every bit as pernicious as drugs or alcohol.

Reply by MW/VA on 9/10/09 2:26pm
Msg #303439

Re: Recidivism doesn't just apply to criminals.

This reminded me of a quote from "American Mania", called "America the Blind... Drawn forward by debt, desire, or both, Americans are emerging as the first addicts of the techological age, driven still by some ancient instinct for self-preservation that in our time of affluence is misplaced. ...It is in this blind pursuit of material prosperty that Americans have begun to push the boundaries of human adaptation, as is evidenced by rising levels of greed, anxiety, and obesity."
Sorry, this is pushing the boundaries & is crossing over into "Just Politics".

Reply by Mae/TX on 9/10/09 3:20pm
Msg #303451

Interesting Note:

New Research Report Indicates The Housing Market Recovery is Uncertain
Tuesday, September 08, 2009 - By Staff Writer, Originator Times

A new research report issued by JC Powers Research Group indicates that the housing recovery is uncertain at best. The new report reveals that outsourcing and current mounting consumer debt may push off a housing recovery for years to come.
Some alarming statistics in the report include:
*Currently more than one fifth of all homeowners are currently upside down, or owe more money than their houses value
*Over $6.1 Trillion in equity has been lost since the housing downturn began
*The average American owes over $16,000 excluding mortgages.
*Nearly 20% of Americans debt servicing payments exceed 40% of their income
*Job losses are expected to continue to increase

The Originator Times has arranged for all subscribers to be able to view this important report for free by visiting: http://cantsleepatnight.info

Reply by Todd/OH on 9/10/09 4:28pm
Msg #303463

I bet the entire process of lending is going to change, affecting the notary directly. Lenders are going to carefully reconfigure the loan process to reduce cost and adhere to more stringent regulation. The consumer will change by putting off refinancing plans because of cost. The pipeline that is so clogged with loans now will experience fallout - some borrowers will just bail from frustration.

I hope I'm wrong but I saw my call volume nearly vaporize. To describe it as pathetic is being kind.

Reply by MikeC/NY on 9/10/09 10:11pm
Msg #303487

This isn't a real "report"....

... it's an infomercial.

Reply by Todd/OH on 9/11/09 10:47am
Msg #303517

The Federal Reserve and Mortgage Bankers Association provide this information and much more for free.