|Pre-2008, most lender account reps that visited our office were easily making $10,000 + in commissions due to the overwhelming volume of subprime loans. They absolutely saw no end to it. My broker, a younger man, was making close to $20,000/month and custom built a $1M dollar home, then sat out on the veranda and puffed on cigars. (He never smoked).|
Everyone, government included, denied we were in a housing bubble. I wrote a short essay explaining why I felt otherwise. I later shared it with a title officer who asked if she could forward it to all her branches. So much of it was looking at historical indicators and a lot of common sense. Many title companies ended up closing their doors.
Currently, many small branch managers (sometimes just themselves and a processor) are making well over $300,000 + year originating loans. That all trickles down to the notary in volume work. People have a hard time pulling themselves away from their overwhelming workload to see what lays in front of them. They don't want to.
Two income families have maxed themselves out to afford what few homes exist (driving prices sky-high) to get in on the lowest interest rates in history. If one gets seriously sick for long, or god forbid dies, or just lose their jobs, their house is in the tank. Here's something not many size up: How many landlords took advantage of forbearance due to loss of personal income? Just that group alone (landlords) could end up putting many renters, who pay faithfully every month, in the street. There are many, many pitfalls in front of us. Just need to look and be realistic, not panicky. Be shrewd, protect your assets and have a back-up plan. Start looking for work you can do from home if the pandemic lasts and signings go AWOL.
Just two old pennies from a long time survivor who never had to borrow a dollar from anyone other then usual bank financing.