I had taken a brief ‘vacation’ from my column over the last few months, and I am glad to reappear in this fine publication. Sorry to those who agonized over my leave of absence and could not get their fix of the Tip of the Month, but here I am. Over four years ago, I [...]
I’ve been sharing marketing advice here for the past several months, and I’m certain all of my columns have been critically important to you. I have strong suspicions, fantasies even, that your life has changed thanks to my tips for landing more referrals from real estate agents. My advice about e-mail marketing undoubtedly blew your [...]
Asking the Right Questions Determines Your Success Before mortgage professionals start the process of evaluating branching companies, it is vital they perform due diligence to ensure they select a credible, stable, transparent company that will have longevity. Due to shifts in the industry, there has been an influx of new branching businesses that [...]
Congratulations! If you are reading this article, you have survived the last few years of guideline changes, lending restrictions, and alphabet soup implementation (HVCC, MDIA, NMLS, etc). With good reason, you probably feel like a champion. Think of how many Loan Originators have fallen by the wayside! You should be proud of yourself for hanging [...]
My original ?assignment? was to write about how mortgage brokers can take advantage of FHA?s new Hope for Homeowners (fondly nicknamed H4H by HUD) to help their clients who are delinquent, underwater, or simply over their heads in mortgage debt. My assessment so far is that H4H ?isn?t worth the paper it?s written on.?
The better FHA option is FHASecure, an alternative program that works amazingly well for FHA approved brokers and their homeowner clients who are currently in trouble. A huge glitch is that the entire FHASecure program is currently scheduled to expire 12-31-08; whereas H4H is ongoing until 9-30-11.
I strongly believe that FHASecure will be extended, mostly, because it looks so great politically ? not to mention that it?s actually working. However, I sure can?t guarantee it.
The current state of affairs in the mortgage industry nationwide has made the profession of being a mortgage broker, banker, originator and marketer a very difficult task. In fact, it is down-right embarrassing in some situations. How I feel about it, or you feel about the industry is really insignificant. What is important is how does the general public see the industry? How do your former customers view the industry? If your livelihood depends on closing loans, then you have to find customers who are not only qualified for a loan by today?s standards, but who is also willing to work with you. In many parts of the country where foreclosure rates are record highs and public trust of mortgage professionals is at a record low, this is a daunting task. I have had many mortgage professionals contact me over the last couple months telling me of their struggling business. The most asked question is, ?How do I find customers who are willing to work with me and qualify for a mortgage?? Here is a technique that could help, called ?framing the situation.?
I received an email from a concerned mortgage broker. He stated that a previous client of his had reservations about working with a broker and the client wondered if he should consider refinancing with a large national bank instead.
Good question. As most of you know, the attrition amongst mortgage companies has been tremendous in the last two years. The sub prime market does not really exist any more, and even the large exclusive mortgage companies like Countrywide have been on shaky ground financially. The most stable mortgage origination companies are the large national banks. As originators, I am sure many of you have felt the pinch of new regulations, product redevelopment and the sting of past loans gone bad.
What is the coop and how is it financed? A cooperative apartment (coop) is an individual living unit within a building or development where a buyer purchases shares (equal to the value of the unit) in a corporation that holds title to a building. Coops are predominantly located in New York and Chicago. Normally a sponsor will buy the building, many times holding the underlying mortgage, and then will sell off the shares. Therefore, when buying a coop, you are not purchasing real property but actually shares in a corporation.
For example, a sponsor owns a building with 20 units and sells it to a coop corporation. The coop corporation will assume the sponsor?s underlying mortgage and buys 15 units. Each unit that the sponsor sells is assigned a specific share value based on the various characteristics (i.e., apartment size, view, etc.). The sponsor retains the unsold shares for five units and can rent them out and is also responsible for paying his/ her own maintenance on all the shares that he/ she owns.
If you are a regular subscriber to The Niche Report, you have probably read my column before and I thank you for reading. For the new readership, I welcome you and would like to introduce you to my column. I have focused the column content mostly on marketing tips, productivity tips, and relationship building tips. You, my audience, has responded with great enthusiasm and I have received emails and phone calls from many. As a result, I brainstormed with the publisher and was given a big ?thumbs-up? to try something new.
Starting right now, I want all of you to email or call me and tell me what is on your mind. Here are some suggestions of what to ?shout-out? about:
comments about my previous columns,
customer interaction,
effective marketing techniques,
growing a segment of your business,
how to control a conversation with a client,
closing the deal,
handling rejection,
and sharing successful techniques you have used.
A lot of people don’t...
