{"id":5172,"date":"2008-09-18T14:08:55","date_gmt":"2008-09-18T19:08:55","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/09\/18\/declining-markets-and-originating-mortgage-loans\/"},"modified":"2008-09-18T14:08:55","modified_gmt":"2008-09-18T19:08:55","slug":"declining-markets-and-originating-mortgage-loans","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=5172","title":{"rendered":"Declining Markets and Originating Mortgage Loans"},"content":{"rendered":"
by Direct Mortgage<\/div>\n

The mortgage industry has undergone significant changes making it difficult for loan officers and brokers to stay in business. Among these changes are intense credit<\/a> tightening and the disappearance of mortgage loan products. Credit tightening has been even more severe for areas in real estate<\/a> markets that are identified as “Declining Markets”. Below are some suggestions for successfully originating in such markets.<\/p>\n

First, if your Metropolitan Statistical Area (MSA) is considered a declining market, search out miniature stable markets and focus on those. In other words, look for pockets or neighborhoods where values are stable or increasing. Even though the surrounding MSA is considered a declining market, data from the appraiser stating that the home is not in a declining area may convince your lender to underwrite the loan outside of declining market guidelines. <\/p>\n

Now, target borrowers located in those stable markets. Create and execute marketing campaigns for those borrowers. Examples of marketing campaigns include operating a lemonade stand at crowded parks, softball games, etc. Offer lemonade for a quarter in a big cup if the person does a 60-sec mortgage analysis with you. There is also telemarketing or direct mail.<\/p>\n

Third, make sure you can provide government loans. FHA loans have been popular, and with the temporarily expanded loan limits and high-balance limits, more homes than ever are eligible for FHA loans. Become approved takes time, so it’s best to get started immediately. <\/p>\n

Fourth, agency jumbos provide better pricing for more expensive homes than traditional non-conforming products. Their features include going go up to 125% of the median housing value, the absence of the MIP (mortgage insurance premium) found with FHA loans, and a higher allowable debt-to-income ratio than FHA loans. <\/p>\n

A good tip to help your file receive an “Accept” status from your lender is to submit only appraisals that are recent. This is because appraisals older than 90 days and outdated comparables represent a significant risk. It is recommended to submit two (2) Comparables dated within 90 days AND two (2) Active listings (pending sales).<\/p>\n

Brokers and loan officers who are willing to learn and change are likely to be more successful than those who don’t. Hopefully these ideas will contribute to your success.<\/p>\n

\n
About the Author:<\/div>\n
If you’re a mortgage broker<\/a> who would like to work with a mortgage wholesale lender<\/a> who is successfully surviving the market, apply with Direct Mortgage Wholesale.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The mortgage industry has undergone significant changes making it difficult for loan officers and brokers to stay in business. Among these changes are intense credit tightening and the disappearance of mortgage loan products. Credit tightening has been even more severe for areas in real estate markets that are identified as “Declining Markets”. Below are some suggestions for successfully originating in such markets.<\/p>\n","protected":false},"author":1207,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84],"class_list":["post-5172","post","type-post","status-publish","format-standard","hentry","category-entrepreneurs","tag-entrepreneurs"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1207"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5172"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5172\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}