One Person’s Loss is Another’s Profit

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A major result of the 2008 housing crash was that many people lost their homes. Very sad, but very true.

This resulted in two things coming about:

    1.  These people needed a place to live

    2.  The market was flooded with unoccupied homes.

All that was needed was a way to bring these two components together. As usual, the investment community found a way.

Initially, this was done through Wall Street and private equity firms that purchased large blocks of homes and turned them into rental housing.

In 2012, almost 8% of home sales were to these institutional investors. However, since then, rising rates and home prices have driven many of these private firms from the market. This opened the rental housing market to smaller individual buyers.

Last year, 37% of homes sold were to those who did not occupy them as their primary residence. Although this number includes some second homes, many were acquired by individual investors for rehab and resale or rental, or as ongoing rental homes.

All three of these type of buyers present lending opportunities to traditional mortgage lenders. Nothing fancy, just have the products needed to finance these purchases and the knowledge and technology needed to originate, approve, and close them.

Do you now offer financing for:

• Purchase and property rehab?
• Investor purchase for rental?
• Second home financing?

If not, you’re missing out on lending opportunities and income. There are also other opportunities out there that may require some new products and knowledge.

Today with refi’s dwindling and a shortage of affordable housing, you need all the weapons in your lending arsenal you can handle.

These include the products mentioned above, plus others such as low down payment products, FHA and VA Financing, and Non-QM Alt-A programs.

If you looking for information about such products, and some sources for them, be sure to attend the upcoming Conference of Mortgage Bankers being held at Harrah’s Conference Center in Atlantic City the week of March 20^th

I’ll be moderating a panel on Wednesday discussing Alternative Lending Products that will help you to increase your business. This is the premier east coast Mortgage Banker’s conference offering an excellent opportunity for networking, new products, and services. You don’t want to miss it. Don’t gamble on your future. We’ll be there.

Go to 34th Regional Conference of MBAs for more information. I am looking forward to seeing you in AC.

Editor’s Note: Congratulations to Mike for being named Person of the Week on MortgageOrg.com. http://bit.ly/Vitali-MO-3-1-17

About the Author

Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.