Mortgage Market Update for March 8, 2010

Today’s blog talk radio show highlighted several areas of interest to mortgage professionals.

Mortgage rates were on a bit of a roller coaster last week. Falling a little each of the first four days in reaction to weaker than expected economic announcements and then rising by an equal amount Friday on better than expected Employment data. Friday’s important employment data indicated a loss of 36,000 jobs, but larger losses were expected. The Unemployment Rate remained unchanged from January, when a rise in unemployment was expected.

There is active discussion in Congress regarding the creation of a Consumer Financial Protection Agency. The proposed legislation is part of a Wall Street Reform bill. The potential exists to separate the CFPA part of this bill from the rest of the bill so that each may be considered independently.

The mortgage industry in 2010 is expected to close a few more purchase loans than in 2009 and a many fewer refinance loans. To thrive in the 2010 market one will need to go back to the basics. David Lykken calls them the five P’s, Position, Products, Preparation, Patience, and Persistence. Position yourself with quality Realtors, Builders and other referral sources. Products are generic. Make sure you are not. Market yourself. Prepare yourself to fully explain the products and process. Be patient with your customers, especially first-time homebuyers, and co-workers. We are all working in an ever changing environment where mistakes can be very costly. And lastly be persistent. Breaking into a new Realtor’s office are getting referrals for builders will not come with just one request.