OK, we got it, HVCC sucks!
Guess what, it is here to stay for a awhile.
You may not like it, but it's a reality.
Don't be like every other originator and Realtor blogging and spouting off about the EVILS of HVCC? The reason lies in that on a whole the general public thinks HVCC is about consumer protection and when they hear you are against it, they believe you are against them That's right, they perceive you as the typical greedy self-absorbed real estate or mortgage professional the media and self-serving politicians have warned about.
OK, I'll be the first one to admit you have valid points about HVCC and are most likely NOT greedy and ARE looking out for your clients; but you have heard the phrase:
PERCEPTION IS REALITY!!!
It's time to accept market and political realities. Embrace and play upon the advantages and you will stick out.
It's a fact...the mortgage and real estate industry is going through a major shake-up (or shake-down). As soon as the refinance rally ends, droves are leave the industry again because either they are not making enough money or have been laid off. Fortunately, a good byproduct of many individuals in the first category are those that gave our industry a black eye.
Unfortunately, there are many support people in the second category who are honest and hard workers who lost their positions due to their company closing down or staff reductions.
What This Means?
During the fall of 1994 (funny how things never change), a loan officer friend called and informed me he was giving-up and throwing in the towel. He said he was burnt-out, tired of chasing Realtors, fed up with rising rates, processors, underwriters with bad attitudes, and dealing with customers that play games. He had had enough!
When asked what lead to his decision, he explained he had been in the industry for about three years and had subsequently learned everything he knew about the mortgage business through trial and error (mostly errors). Additionally, with the refinance market fading fast he was not closing many loans, business had became a lot tougher, more cut-throat and he just couldn't compete with the in-house Realtor/builder loan officers (sound familiar?).
When asked why he had gotten into the mortgage business, he said he did it because he had heard there was "big money to be made" and figured with a few loans under his belt, he would soon be making more money than ever before. Moreover, he had always had a passing interest in the financial aspect of "real estate." He quickly found-out how complex and difficult the realities of this business can be.
Truth be said; I had very little sympathy for him. By chasing the "big money" and choosing to work for a mortgage brokerage (which I had advised him against) that offered high commission splits, yet provided absolutely no training whatsoever, it's no wonder he didn't succeed after the refinance business faded (and boy did it fade in 1994). Bottom line - he had entered the business for the wrong reason--to chase a golden ticket...not because he was passionate and wanted to help people.
Yes, this business is difficult, but it's a relatively simple (notice I didn't say easy) job once you know what to do. On every deal, by doing the right things upfront and asking the right questions, you know the end result--the loan closes. How you get there is where the challenge lies, and overcoming the challenge is why certain people thrive in this business! They love the challenge and the rewards that come every day. It's exciting!
From 2000 to 2006, it's estimated the mortgage ranks went from 180,000 to over 300,000 (2006) in the industry. During that time period, that's a whole lot of people who only knew the golden days of the refi and building boom. Consequently, many developed the skills of being order-takers, not professional mortgage originators.
Yet many originators around more that 10 years, know what it means to ORIGINATE a loan. It means:
- Marketing yourself aggressively
- Building a solid and professional reputation (and)
- Generating a steady stream of referral
They've seen high rates and low rates and know this too will pass. When the market changes or turns (and it always does), they'll be well prepared to take advantage of the next cycle. Veteran producers aren't giving-up either. Neither should you. Decide now if you have the determination and smart to be different and then stick-it out.
Do you have a passion for what you do?
Additionally, be thankful for the shake-up because it means a whole lot of unskilled and unethical loan officers will go the way of the saber tooth tiger and stop ruining the reputation of the industry. Best of all, it means a whole lot more business for you!
Next BIG question we as an industry have to solve for is:
What are we going to do to prevent the abuses that took place over the previous years?
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