Long Beach Real Estate-Long Beach Condos

Long Beach loan originators aren't in a credit crunch; we're in a time crunch.  Loan demand, at the originator level, is at an all-time high.  Never, in my 14 years of originating loans, have I seen so many people who need mortgage financing.  Supply, as we all know, is just not there.

Borrowers want money and lenders are reluctant to loan it out.  This is where the problem lies. 

Life as a loan originator, in 2004, was a walk in the park.  There were few incentives to ask a borrower for income documentation, appraisers gave you value plus 15%, and underwriters practically processed your files for you. 

Today, experienced Long Beach loan originators are essential.  The problem, now, is that the inexperienced have infiltrated the underwriting departments...and it's causing a logjam.  PMI companies, long eschewed in the days of 80/20 loans, are busy.  They need to hire underwriters to help them keep up with the increased demand.  High LTV loans are still needed and the second mortgage market has collapsed (and will get worse).

Where did the PMI companies turn to find underwriters? 

They hired the laid-off sub-prime underwriters to meet the demand...and they don't know nuttin' about prime underwriting guidelines.  They are being overly cautious because this is their last chance to stay in the mortgage business.  The guidelines have been reset to the year 2000; in 2000, most of those "underwriters" were getting ready for the Junior Prom.  The least experienced are making credit decisions in the mortgage business, once again, except this time they're scared to make "decisions".  This means that the quality loan originator, who knows how to "game" the Automated Underwriting Systems to secure an approval, is meeting resistance from people who have never paid a mortgage...and it making us all go gray as we spend more time on each file.

It's not just mortgage brokers; the direct lenders and federally-chartered banks are dealing with this problem as well.  

Today, your loan originator in Long Beach, is fielding calls from disgruntled borrowers, who were sold a bill of goods by the hucksters who infiltrated the mortgage business in the post-9/11 credit boom.  We're dealing with highly leveraged people, who can't afford their payments, and are watching their property equity go negative fast.

Today, your loan originator in Long Beach, is spending 3-4 times the man-hours, on the telephone, teaching these rookies how to read FNMA and FHLMC underwriting guidelines.  Our good contacts, in underwriting, are all overworked as they check, re-check, and triple-check the work of the unknowing.

Today, your loan originatorin Long Beach,  is helping their Long Beach REALTOR clients negotiate short-sales with the loss mitigation departments.

Today, loan originators, who care about customers, are burning the candle at both ends.  The good ones are considering that bike rental business in Cabo San Lucas. 

What can the professional Long Beach REALTOR do to insure that their favorite loan originator puts their clients at the top of the file?

• Listen to this 20 minute podcast about how to pre-qualify borrowers- knowledge is power in this game.
• Instruct clients to assemble their documentation before they start shopping loans.
• Educate clients why they shouldn't resign from their jobs, buy big stuff before the closing, or move money around.
•  

Good loan originators are in demand.  They know how to set client expectations, deal with the unexpected problems in underwriting, and perform minor miracles to get the simplest of loans approved.  Most of us do that every day without applause nor fanfare.  Long Beach REALTORs, looking for reliable financing resources, will embrace those good originators, today...before we all run off to Cabo.

This whole thing will be over...BUT...it's gonna get worse before it gets better.