Good Monday morning to you. Today, I have to give a
disclaimer before my mortgage message: My views do not necessarily
represent those of my parent bank.
I caught myself using a word to describe my job this week. I guess you
could call it a Freudian Slip, which is best described as an error in
speech, memory, or physical action that is believed to be caused by the
unconscious mind.
Throughout my career, I have used adjectives and nouns in colorful,
professional ways in order to describe or glamorize my title; during the
2001-2004 era, I was THE MORTGAGE SPECIALIST, and my self-proclaimed title
eventually evolved into MORTGAGE COUNSELOR during the 2004-2007 "First Time
Buyer Program" period.
Yesterday, when I tried to describe all of the overwhelming changes to
credit score requirements, loan-to-value adjustments, and PMI criteria, my
usual words didn't quite seem appropriate. Pages after pages of material
have come across my weary eyes, and I have pink, green, and orange post it
notes on my bulletin board for every important change that supersedes the
last lender decision. I am no longer a LOAN OFFICER at Union National
Mortgage Company; I regret to inform you that I am an "ENGINEER."
In today's market, typical loan officers are extinct because loan officers
can no longer simply create a loan, pick a rate, grab documents, and
schedule the loan closing. In today's lending atmosphere, the contemporary
loan officer must find an existing loan program for an applicant, accept the
best rate that the program offers, carefully monitor the constant changes of
the loan program before and during the process, pray the appraiser supports
the value of the subject property, and hope the human underwriter does not
overrule the automated underwriting system's loan approval because she/he
might feel the loan has too much risk. When comparing the two types of loan
professionals, it is easy to see that the successful loan officer must
unlearn his previous job description and modestly embrace the role of a
student-constantly reading daily guideline changes, hungrily digesting
critical Fannie Mae/Freddie Mac updates, and applying the latest program
modifications to each client's specific needs. Thus. . . engineer. The
loan officer of old must find a different full time job.
Considering all of the hurdles, are the national decision makers indirectly
telling us that we shouldn't buy homes? I agree it certainly feels like
that is the message, but I wish I were a first time buyer right now. I
would grab a house with these low rates, live in it for two years, sell it
when the market normalizes, and walk away with enough money to invest
thousands in a few mutual funds. Without a doubt, this is the PERFECT time
to buy a home. There are still a dozen incredible grants and loan programs
available-even for those with less than perfect credit.
The challenge in today's industry isn't finding a home. The difficulty is.
. . many realtors and loan officers do not know the rules, and some of those
who KNOW THE RULES have abandoned the industry because of their bitter
disillusionment. Therefore, the real challenge becomes finding a team of
professionals who will successfully navigate a borrower through the lending
minefield without injury. Although the obstacles force many of my
colleagues to become disenchanted, I am determined to continue to "ENGINEER"
loans for our citizens and continue to provide information about
homeownership and mortgage preservation: (513) 518-6318.
www.homeownership2008.com
www.johnathanbarber.com