Mortgage Industry Trends

Dueling Housing Opinions

LoanLogics Glass Half Full
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LoanLogics Glass Half FullHave you heard the one about how the economy continues to improve yet you still can’t find a decent job? Well this is a little like that.

Fannie Mae’s recent survey revealed that many homeowners believe now is a good time to sell (Seller’s Market). At the same time, the Wall Street Journal issued an article citing some information saying that housing could be in trouble, as renters are not looking to buy anytime soon (Renters). Who you gonna believe?

It all depends on how you look at it. You know, it’s like the close play at first base. Was the runner safe or out? How you see it depends on your angle and who you’re routing for.

From a glass half empty perspective, things look grim for new buyers coming into the market; tough economy, few jobs, low wages, high debt.

Looking at the glass as half full you might see the economy rebounding, home prices stabilizing, owners looking to sell and move up, with rents increasing, motivating renters to think about owning.

In the end, they’re both probably a little bit true. Regardless, there are home sellers, home buyers and renters all out there looking for a place to live. A little something for everybody. With some people preferring to rent and others looking to sell there is the opportunity for activity in the investment property markets.

With rents on the rise the opportunity exists to educate current renters on the benefits and savings that come from homeownership. It comes down to how the package gets presented. Some people may believe they cannot afford to buy a home but with a little education and today’s low down payment loan programs, they may find it’s not out of reach. Who is going to help educate them?

For now the refi market is gone. Business still exists but lenders need to go out and find it, go after it and capture it. It may not just walk in the front door, but it’s there. The lenders that recognize this, have the marketing and consumer education plans in place and the trained originators and support staff will succeed.

It’s time to take a long hard look at operations, determine where you can streamline and cut expense and how best to identify and capture what business is out there. There are always people who want to buy homes. All you need to do is to identify them and provide the products and services they need.

What is your view?

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If you keep doing what you’ve always done; you’ll keep getting what you always got. Hey, if it’s working then go for it. If it ain’t, maybe it’s time for a change. You be the judge. Just don’t get caught in the crossfire.

 

Michael Vitali

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.
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Michael Vitali

About 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.
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