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Hey Morgan,
Thanks for inviting me to join the Blown Mortgage writers. I’ve been a reader for quite some time and I’ve learned a lot and look forward to continuing to discuss the issues that are affecting the mortgage industry now and in the future.
A couple of quick thoughts to introduce me and then I’ll write more and tell more as time goes on. I got my start in the industry in June of 1988 (at the age of 12!) when I started my career as a Realtor with a local real estate firm. I spent 3 1/2 years doing that and then there was this little thing called a housing downturn through the Persian Gulf War (the first one) that caused me to look into other lines of work (not selling a house for 6 months tends to do that.) So, that’s how I got my start in the wonderful world of mortgage lending.
Since 1991, I’ve worked for 2 large banks and three small ones, always on the retail side and always in originations. I went from a large bank to a succession of small banks as I searched for the “place” to be. I’ve found it in a big bank again 2 1/2 years ago and I love my job, even in today’s market.
I very often feel that I’ve often got a different outlook on what it takes to be successful in this business, but I believe that my record, the success and longevity of my career speak for themselves. I’m looking forward to sharing my thoughts and ideas about this industry with you as time goes on.
I don’t think it’s an overstatement to say that the mortgage and real estate industries are going through fundemental and seismic shifts right now. I think that we’re going to see a significantly different lending world 18 to 24 months down the road and I’m looking forward to helping many others walk through it as well.
That’s about it for now.
THANKS for your insight on Mortgage related issues–We read your site daily!
My husband and I are currently leasing our townhouse in the NoVA area, and waiting for prices to come down substantially in the future before we buy but I am also worried that Lending may be drastically different by then….
We have credit scores in the high 700’s, will try to put down 20% are are well-employed. Can you speak to whether you think the changes will be mostly for those with low credit, limited funds to put down, etc????
I keep hearing of Fannie threatening to charge lenders .25 basis pt.for all loans after March…??? ALSO–Did you see the article on today’s page of Patrick.net, titled “Move to inflate housing prices gathers steam”?!!! Tell me this is just a HOAX.
Matt,
I’ll tackle this one with a few thoughts…..
1. I think that people with good credit and a downpayment will always be able to buy a home. No one knows what interest rates are going to do, but mortgage lending will always be there in some shape. If you are buying well within your income limits (house payment of less than 25 to 28% of your income) I think you’ll be fine. I think the majority of the changes will be for lower credit, lower downpayment loans.
2. The “Fannie” thing - I’ll write a more detailed post about that later, but in a nutshell, here’s the way it’s panning out. Starting with loans delivered to Fannie and Freddie after March 1, there is going to be a credit score premium based on a combination of credit score and loan to value attached to loans. The “break even” point is a credit score of 680. No matter the loan to value, if you are over 680, you’re fine. If you want to do a 95% loan to value and are at a 640 credit score, you can expect your rate to be a good bit higher.
Didn’t see the article on Partick.net.
Take care and have a good day!
Tom
Uhm, didn’t know you could qualify for a realtor’s license at 12 back in 88…I should have looked into that, instead of my paper route.
MattBW - 20% down with high FICOs will always put you in the position for the most competitive rates on the market. What those rates will look like is hard to say; but regardless you’ll be courted with the best there is when you decide its time to enter back in to the market.
Thanks for reading and for the compliments!
Chris,
I was a child prodigy - and if you believe that, I’ve got a great deal on a neg am subprime teaser rate payoption arm for you!
Tom
Tom,
Touche!
Might wanna correct typo tho brother, it kinda threw me off hehe.