Instead of running for the hills, why not look for gold in them there hills?

So here we go again.

You have heard all the slogans before…perhaps even from me. 

Trees don’t grow through the clouds.

What goes up must come down.

There will never be massive layoffs in the mortgage business again.

People/customers just flock into my office.

Profits keep going up.

I will never be poor again.

My business will pass down to my kids and then to their kids.


Guess what?  They’re all wrong. So now that we know things are changing, it’s time for that old standby question: WHAT DO WE DO NOW? 

The answer?  There has never been a better time to re-tool and get to the top of the list with the most successful mortgage lenders.  The first thing is that non-issuing bankers have to stop thinking like mortgage brokers.  I had a very successful banker who doesn’t issue securities tell me that it is all about what he is getting now.  I tried to convince him that issuing bankers can make 6 ½ pts plus establish a profitable book of business, but he wasn’t interested.

I tried to tell him that I had an associate who could accelerate the application process.  He couldn’t have cared less.

I tried to tell him that I could introduce him to a mid-sized issuing banker ($50 – 100 million net worth) and possibly work something out regarding the servicing.  He yawned.

I tried to talk about an exit plan and he wasn’t interested.  Boy,did I waste my time.

With a smaller market and a need for product, issuing bankers will be tripping over themselves to capture volume. They have very large overheads and they realize that many brokers are better at capturing mortgage loans than their companies are. The servicing market is really heating up. Every day, new companies with large war chests are entering and outbidding each other. Successful bankers are being offered new types of financing that will advance up to 90% of the value of their servicing value. There is so much cash out there looking for smart aggressive mortgage companies to do business with that the opportunities are wonderful.  If you know where to find them. 

The biggest thing to hit the market is the end investor willing to share its servicing income on a monthly basis as well as when the servicing is sold.  So what do you need to succeed? 

An open mind

A willingness to test out new concepts

The ability to venture out of your comfort zone

A positive, “glass half-full” attitude

A desire to hire only the best and the brightest.

As the old slogan goes, “there is gold in them hills.”   I believe it and am looking forward to seeing how this market shakes out.


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