*Warning* - This is a long one...
It's later than I expected, but my desire for this has been long coming. I title my particular blog, "The Insider's Insights on Mortgages" but I have yet to express to folks the workings behind that often foggy door of Lending. Shame on me, for that. I may actually spend some time on this post for once, if I do it right... I think it will be important.
The title of this post is, I admit, a tad misleading. While I think it could become a hot ratings sell, I don't necessarily foresee a sitcom based on the Lending institution... just yet. The point I want to drive home is a greater understanding of the money (financing) side of Home Loans and what we do and how we do it. Actually, I want to identitfy some of the psychology behind the whole deal. It's my belief that a better understanding by Agents, Consumers, Appraisers, Inspectors, Title Companies, etc will make all of our lives just a tad easier. While I want to say it poetically, plainly, & eloquently, I'll just say it. I only hope that the following properly expresses my point.
Before I knew what a mortgage was, I thought you made mad money on every deal you did. I never majored in business or finance, did the accounting thing for about a year, and eventually graduated with degrees in Psychology & Philosophy. Frankly, they were the only subjects that held interest for me at the time. I looked at College for what it was (or what I thought it was) a highway to knowledge ... not an occupation. In my case, I was right. Yet, I wasn't right about the Mortgage Process... not at all.
*Skip the next few paragraphs if you want to look into the Inside, rather than hear any inkling of my own story*
So, I entered this business because I wanted to make some coin and have a career. I wanted to help people and make some money doing it. I thought, "Who better than me to be a part of an Industry so important to our Country?" It took awhile to get my foot in the proverbial door, but eventually I went to work with a small firm in Allentown, Pa by the name of First Choice Equity Group Inc. I've looked back since, I won't lie.
My first year was wonderful, I marketed my posterior off and did rather well. While I didn't know much about Mortgages, I had a wonderful support TEAM behind me who made sure my mistakes were minimal and cost effective. Everything was by the book, which I knew ... even then ... may hurt us in the short run. It pays to be a criminal... just not in the long run.
Then came the second & third year, my head was so far up that same posterior that my forehead was touching my tongue. I was dealing with demons and doing my clients, my company, & myself a disservice. I floundered like a fish out of water and was ready to drown before I realized something somewhat profound... "Take your head out of your posterior and look square in the mirror. Wipe that colored stuff off your face and move on. Don't let YOU hold back YOU! And don't let YOU ever hold up or back the very people you were meant to help"
Year four was a bore. I was just trying to make up for lost time and trying to survive. I was on a mission, but as missions go ... it tends to be a slow and steady process. I worked that tail that sometimes wags me off to get there. And I did. I moved from resident ‘head case' to the top producer... not only in our office, mind you. There were waves of recruiting efforts aimed at me across the board when my head was on the neck and body that seems to guide it. The fact that you care about transactions and people isn't mentioned often enough, and despite my faults, I did and I do. Sure, year four was a bore. Yet, I was damn sure it wouldn't be any semblance of my legacy. There's an ego in all of us... wanting to be greater than we actually are. I don't want to be great, I want to be me... that, in the end, may just fit the bill. If I don't, at least I won't look in the mirror and cry.
Years five & six, I'll skip... for now. They are less tragic in nature, I was doing my job rather well ...
*Ok, back on something you may want read... the insight from the insider*
And soon after came a point where more than dust hit the fan. Things were starting to turn outrageous. While at one point it seemed almost anyone could get a mortgage, now it's like taking a limp piss into a full-blown wind. It's as if everyone is watching their asses at this point ... barely making enough loans to call themselves a lender. The following will tell more of the story... based upon (and not loosely) an email I got... which showed me where the problem always lies.
‘Hey Jason, hope you are doing well and business is flourishing! I just wanted to tell you about a wonderful opportunity that many Mortgage Brokers are taking advantage of since things aren't as pretty as they once were.'
My response, while snide, " Pretty, eh? Some folks call me a ‘Loan Officer' or a ‘Mortgage Consultant' or a ‘Loan Originator' and the beat goes on. In this state of being, in this industry, I call what I do ‘Chaos Control'."
His retort was simple and spoke volumes, not necessarily about him, but about this Industry.
"When we were making three digits a year the chaos is easy to deal with."
Hmmmm, I'm sorry but when did you staple a number to people's lives? You're making handfuls of money and then all of a sudden, when you are not... you bail? I'm not wearing a Rolex, I'm not sporting a thousand dollar suit and I'm certainly not encaved in a half a million dollar home because of the 'boom'. A bulk of that is my fault but I never lost sight of why I wanted to do this... to help. While I understand in the Capitalistic Society we live in, you have to earn money, I will also understand but never agree with those who get in and get out. Financially speaking, they are probably wise. Ethically, I wouldn't trust them to feed my cat. And Baxter is an eater by the way:-)
Some folks have left the Mortgage Industry because it wasn't their thing and they had to do something else to live. I get that, understand that, & respect that. I've met a ton of good people who I wish were still in this Industry, but are no longer.
The main problem with everything can be summed up with one word, five letters, one syllable, Greed. I've said it before and I'll say it again, that's the downfall of any business, society, economy, & human relationship for that matter. Greed can be good but not in the way we have and continue to practice it. Self-Promotion & Self-Gain and that's it. While I know this world is a great big place, it's really very small. I firmly believe in the 'survival of the fittest' mentality, but that mentality means helping each other out, that's how we survive. If we don't, problems will linger like the soft scent of a candle in a once barren corridor.
"When we were making three digits a year the chaos is easy to deal with." That mentality scares me, not because he or she is opportunistic... but because he or she was into it without others in mind. Or, so it seems. This process, Mortgage Lending, is just as much about caring as it is about closing a deal. Or is it...
Money & Power intrigue us. The concept or reality, whichever you are living, presents a wealth (pun intended:-) of opportunity. Don't get me wrong, I would never want to turn our culture or country into a socialistic or communistic operative, but I do want to call a spade a spade. Our humanity is just a subtle breath of everything else. That's scary. That can be changed. When we start to care, to be selfless, to be inclined to look out for somebody else's best interests ... then, this will truly turn around. Perhaps I'm waxing philosophical here and I certainly didn't spend nearly as much time on this post as I should have... that just makes me a 'D' student with a loud heart. Money & Power intrigue me as well. It intrigues me how it can both screw us up and help us out... opposite ends of a superficial spectrum. I want to make sure anyone I encounter utililize them in the good way. I also want to make sure they are ready for it. That's the thing about Money & Power... you eat well but often times sleep restless.
Some days, I feel like this. Other days, I feel like this. Bottom line, Mortgage Lending is like life, like this. Just hope that Blair isn't your Loan Officer:-)
JMS
Parked.
The ups and downs of commission businesses are familiar to many of us. It's the price we pay for our independence.
Times like this test our resolve. My solution is to just work harder and wait for the next boom.
What else can you do?? One thing is for sure. When the market comes back in a year or two???, we'll be ready and fully prepared to roll right along.
We'll be so far ahead of the rest of the pack, they'll just be in our dust.
Was does parked mean? Undecided?
Anyway....Jason its always a pleausre to read your posts. I look forward to your posts...keep them coming.
Parked means that you checked the little box so you will get email noticiation of future comments.
Jason... I'm parking too. This was very well put. I always tell people that I will do a good job and then the money, for me, will follow. I don't keep my eye on the money. That is so much easier to do in a good market but people like you, Lenn, Jennifer will prevail in the long run. Great post.
Jason
I read your post with great interest. Well written with great insight to the mortgage market and issues. Keep the faith and stay focused.
Good Luck and Success
Lou
Hi Jason,
Just keep doing what your doing. You care about people first, the rest will follow. You cracked me up with that last link! :)
Susan... you are so funny! Did you just make that up? Parking means that I've got Jason in my car and I'm all over him!! LOL! Seriously, it means I'm reserving that space until I can compose a comment worthy of his fantastic post. But I may end up checking the little box too. I think this will inspire some good debate.
So are you up for a little slice of Saturday evening pie??
MWA!
Good post. The bottom line is that most things, especially all financial markets, are based on fear and greed. The big picture I think is that all of our related industries are going through an intense cleansing (realtors, mortgage professionals, title companies, appraisers...etc). A lot of people have already left the industry and there will be many more to go. The ones that remain will be the most competent and most professional and will allow for a strong rebuilding process to begin... as it already has !
Make the pie a humble one because I really did think that was what parking meant!!! Lol!! Add some red wine to the mix. Mwa right back at you.
You are way too deep for a Saturday night. It is a great post. Only the people that are going above and beyond in advertising, new ideas, and working twice as hard are going to survive
Jennifer - You can park anywhere you'd like, my dear:-)
Lenn - Well put. Your experience in this Industry far exceeds my own, yet your thoughts convey what I've been thinking since the whole thing started. Resolve is key.
Nancy - 'Parked' may mean different things to different folks, but to me it is just a term that defines the fact that you've cemented your place on a particular comment thread. Usually, you return to see the feedback.
Susan - Thanks! I think you may prevail as well, you're a smart & savvy person.
Lou - Thank you Sir. I appreciate that and I hope it meant something to even one person besides me. I'm not always good at being concise about things.
Suzanne - I'm glad you at least stuck around to check it out:-) Part of life's equation rests on that theme song;-))
Jennifer - You had to bring pie into this, didn't you?
Christoper & Stephanie - Very good comment! I agree. While it's a shame some (who were good & ethical) left, this is a cleansing. Mother Nature has found the Mortgage Industry... Jurassic Park is on the tube, talk about irony:-)
Susan - Do you prefer Cabernet or Merlot? Not that I'm limiting the playing field, feel free to indulge in Shiraz, 1986 Margaux Margaux, Bordeaux, or the like. I'm also a sucker for boxed wine, it flips people out and is as cheap as the dickens!
We will ALL make it through this if we hold on and stick to it. Many of the agents and appraisers, mortgage folks, etc are dropping like flies. The ones that are staying with it through the tough time will be SURVIVORS!!
Tracey :)
Jason,
I have been from the bottom to the top to the bottom and back. I have lost my ass and had to start over again. I am not sorry to see so many opportunists leave. I look foreward to better days and if it means going through this, so be it. Josh Turner, country singer: "When you're going through Hell, keep on going......you might get through before the Devil even knows you're there." Keep on going!
Russ - How do they say in 'Cyber-Terms'... LOL. Way too deep? Yeah, you are probably right. The rest of your comment, I agree with as well. Damn, I'm feeling complacent;-)
Tracey - Be the cockroach Tracey...
Fred - I continue to love the way you express your thoughts. Shoot, perhaps I should subscribe to you or something...
We will start with a nice Oregon Pinot Noir (best in the world, btw...)
Jason,
If you don't got it, you're gettin it...It's not a mad world we live in, it just has some mad people in it...we don't need wings to fly either, that's just a delusion...and I stopped trying to figure out 'the facts of life' when I met 'Life' Himself!!! Now, everyone tries to figure me out...even me at times!!! :) Thanks, Fran
P.S. On several occasions in my life and career I had opportunities to 'change roads'...and probably gain great financial riches...I chose the road less traveled...and I never regret it!!! And guess what...I'm not doing so bad financially!!!
Oh, and I forgot...nice post!!!
Jennifer - You do make me laugh. I'm not sure if I hate you or love you... I'll opt for the latter. BTW, that pie looks like it is alive! Looks like it has teeth and stuff, pass me the Pinot Noir and I'll call it an eve.
Congratulations on another well earned feature baby!!!
MWA & FWA!!!
Jennifer, I am up for trying the Oregon Pinot Noir. xxoo However, I have already had two glasses of cabernet and I am feeling no pain!
Fran - You have wise soul. You're a smart man. We may disagree on certain things (nothing you mentioned in your comment) yet I learn from a guy like you. Thank you for that.
Jennifer - Either you are a secret moderator or my own cheerleader. Regardless, you do make me a better me.
Jason.... kudos... long, yes.... but so true of what several of us went through for many years. Yours truly also... yes, I love materialistic things. but when I earn them. And raping someone is not earning to me. I use to say, business was so plentiful to some that you could stick your hand out the car window and still get a loan. But as you stated, so many got clients, but didn't handle them as people, but as money. Overall... the gist of the blog was very good, hence the star.
@ Jennifer.... I was going to park, but if parking was that you were in the car with Jason and all over him, that wouldn't go to well with me... lol Besides, it would be very crowded in that car...unless you brought a female friend... lol
Susan - No pain, no gain. I'm full of cliches...
Jeff - Well, thank you kind Sir. As far as your comment to Jennifer, shoot, I wish I could podcast a comment right about now. I'd make Roddy Piper look like Bushwacker Luke, if ya smell what Sardi's cooking;-)
Jeff... you know me. And I think you know the answer to that! ;-))
Jason.. This requires more thought than I am willing (or able) to give on a Saturday night. However, overcoming our personal needs and desires to focus on someone else's is an endeavor that we all undertake with each sunrise. We try to take an anti-Darwinistic approach with our clients. Telling them 'no', when we know full-well that it means we too will go without. Accepting the role of fiduciaries requires trust hope faith that the short-term sacrifices that allow us to face the dark each night will also allow us to provide for our families in the long-run. Hopefully, those who prefer to face the demons will go search elsewhere for simpler ways to make a living. (Ok, that was significantly more than I meant to type)
Jason - I didn't know you were such a cheap date - I really had you figured for a wine snob.
So if you ever write that 1st time buyer post that you promised months ago, I can just send you a bottle of 2-Buck Chuck? I think I still have a T-shirt that says 'friends don't let friends drink 2-Buck Chuck.'
All I hope for is that my clients remember me....and this
Everyone: Jason's Birthday is this coming Thursday...July 17th...don't forget my lil bro :) :)
Jason you rock - you seriously rock
Hey Jason, I happened to like Blair in Facts of Life. At least she was cute : ) What was said in that movie, "Greed is good?!" Greed is the area that just brought down IndyMac and now has FannieMae and FreddieMac in a quandary. I still think a huge aspect of the slowdown in housing "sales" in the last year or so is the tightening of the credit market. That's why I tune into you Jason. Keep giving us the inside scoop. And BTW, pass me a glass of the Chablis.
I see Sally's back...hope she's bring the cake...Jennifer will have the wine.:) OK, that is Thursday and today I have to also say a very heavy subject....but one that makes sense. those 3 figures corrupted many a marginal person. It was/is hard for so many to stay on the right side of things.....and as you experience it can cause a lot of soul searching :)
Jason--- Just sent you a private email to your work email address. Please review it and give me a call next week.
Hmmm..love, hate...hmmmm...I am from the you really can have it all and still be a compassionate, giving person...lender or realtor. Whether you choose to wear it, drive it, live it, eat it, travel it, save it doesn't matter....what does matter is who and how you ARE...to the client, the family, the realtor....
Jason, This post went well with my morning coffee. My business plan has always been to just concentrate on the "peeps" and doing the best I can to help them out. From there everything else just takes care of itself.
Now pass me a piece of that pie.
Jennifer - Lol, I'm sure he knows that. Damn babe, I love ya girl!
Erik - That is a significantly profound comment. Don't sell yourself short, never sell yourself short. From that comment alone, I think I like you... I'll read you just to make sure;-)
Virginia - Back in the day, I was encompassed in another form of liquor/wine... Mad Dog:-) I'm no snob (wine or not), I've been on both sides of the fence and will walk carefullly in between. I haven't partaked in the 2-Buck Chuck... I should probably stay away but I'll check it out:-)
Sis - You just didn't go 'Simple Minds' on me, did ya? Here's a different version:-) And thank you... cliches aside, thank you.
Thesa - How do I respond to that?
Gary - The movie is Wallstreet and here's the infamous speech. Blair was cute, I'm sure she still is. Here you go my man...
Kathy - Indeed. Three figures has a way of corrupting one's efforts.
Aaron - You are a smart lad, I pay attention to those political posts you get into. We'll talk...
Sally & David - Call me naive, but I'm with you. I also think you can have it all, very astute perspective. Without sounding intellectual or boring, that makes sense to me.
Bryant - Here you go, bro...
Jason, If Bryant isn't going to eat them both, the chocolate one in the back has my name written all over it! Somebody is having a birthday, somebody is having a birthday! How old?
Jason,
Maybe HGTV will come knocking at your door. Great post.
I'll take the coconut piece, Jennifer shared, Yummy, my favorite.
To those of us who have made it a career and not a job, we have to just keep moving forward, one day at a time, cut back what does't work and apply more marketing to what does. Of course this should have been happening anyway, but hard times make us ( me) look at things in a more conservative way.
I know many good loan offers that did come in during the boom, ethical people. They just didn't have the history or client base to sustain them and they needed to feed the family.
Jason
I noticed a few comments up that your birthday is July 17...........mine too!!!
Taking time for an intraspective view of where you were and noticing what you have become is good for the soul.
Partial Change will only come out of an unwillingness to continue
Radiacal change will only come when the road you were traveling is now blocked shut.
True change is when you really explore your options and STILL make a decision to jump in head first
Marriage is a version of True change, and trust me, it will be the change of your life. Same with children.
Business is something we do to pay the bills, when it becomes who we are, we tend not to like ourselves as much.. Balance thru a life that does both creates a happier existience.
Happy upcoming birthday to us Both...
Bro,
Think thick skin...or even riding a roller coaster with no one at the control all the time. Just look at the tax return and you'll really see the whole picture. I try not to look but as long as I can monitor the old Bank account then I try not to worry too much.
Jason, greed is not just an individual trait but also a trait of corporate teams, etc. In times like this, we really get to know people - the people we work with (or did), or business partners, and most of all our clients. Most of the people I now work with, I want to work with. This is one of the positives from this mess. AJ ps. That Oregon Pinot above look awful good.
Susan - It's all yours. I will be 32 as of the 17th.
Diane - I'd prefer HBO;-) Thank you.
Missy - As typical, your perspective is timely & educational. We are living in interesting times, for sure. Enjoy the cake:-)
Norvell Sr. - Happy Pre-Birthday man! That's quasi-cool!! Something tells me that if I were there or you were here, we'd have a good old time on the 17th. Thank you for your words of wisdom.
Norvell Sr. - Let me guess, I'm the one on the right:-)
Neal - Thick skin is exactly right. I'm still developing the layers. It's funny, as a kid, I couldn't ride roller coasters because I got motion sickness. I picked an interesting gig considering...
AJ - I concur with your outlook and there are positives to what is going on... it's a forest through the trees type of situation. And here you go...
Sardi - such a complex and simple person you are, keep it up and keep that attitude. Keep your face to the wind and the stream strong. You share your birthday with my sister, are you her unknown twin (decades younger?). Make sure Jennifer shares some of that Oregon Pinot (agreed, the best in the world) with you, one of the best in the world.
Jason,
Wow! Classic Comedy and Tragedy in high definition!
You could call it: "I Know What You Think You Heard, But That's Not What I said"
The first episode "You Want It When?"
The underwriter should never speak just point at your paper work and mimic Hillary's laugh.
So much for the headline, now I'll read the rest of the article.
Bill
As usual I am a little late in reading your post. I couldn't bring myself to read all of the comments, but wanted to let you know that you and I sound an awful lot alike. You want to write my posts for me?? You definitely are the better writer.
Jason - You are right - long post. Good thing I love to read. : -) As others have said it is the difference between having a job where you are just putting in your time waiting for that next commission check and having a career which you love and truly help change people's lives.
So, is there more pie?
Well said Sir. We need to be Givers, not Takers.
Mike - It appears a lot of good folks were born on the 17th:-) Thank you for the kind words, Mike.
Bill - There's little doubt you'd be a key component in that sitcom.
Michael - "...wanted to let you know that you and I sound an awful lot alike..." You poor thing;-) I will gladly write your posts for you but take no responsibility if you get booted;-)
Sandra - Well put and thanks for taking the time!
Liz - That's a fact, thanks for stopping by.
Nice Nice Nice. I have been in the business for 30 years, and there have been a lot of ups and downs like a basketball game. This is the worst, and it is not for the lighthearted. Drink something. It will make you feel better.
Jason, Great post. I could almost switch some of your mortgage terms for real estate terms as we can relate. When I was young and new in the business, I started in a sellers market. Not anything like the one we just lived through but a sellers market. I was so young -and blonde stupid- I just thought that was the way real estate worked? I thought shoot, why doesn't everyone do this? Then the rug was pulled out from my feet and I figured it out. But I stuck with it because I loved it. I knew it would come back around and I would be well positioned. You learn and become better with time. GREED = GLUTTONY and there is a reason it is one of the 7 deadly sins.
You must be related to me, I am a psych major and born on the 17th too. Great post!
Jerry - You're right, definitely not for the lighthearted. I've spoke and work with folks who also have been in the biz 30+ years and they tell me the same here. Someday we'll look back on all this, oh the stories we will have to tell.
Audrey - As will this too, come back around. I have the feeling that those who stick through it and fight the good fight will reap the fruits when the smoke clears. What is it with psych majors and Real Estate?:)
Boy Jason, you struck a nerve with me. I'm not happy about the mess that this industry is in.
Greed certainly was a factor and the issue that really stirs me up is that many of the terrific people in my industry that really had nothing to do with the problem are on the sidelines collecting unemployment.
These folks worked hard over the years and never really made any big money like some of the folks without a conscious that did. They have just become casualties of this downturn and like you I care about them.
It isn't over yet and I'm not sure how many more are going to suffer because of the short sightedness of many in this industry. The worst thing we can do is not care. Thanks for caring!
I'm hangin for now.
Greg
Greg - I know what you mean, especially with the good folks that are gone. At this point, seems we've got to mix surviving with thriving, hang in there bud.
Am betting on Baxter. A smart cat that. His keeper too.
Thanks for another good one.
cheers
Great post and the first one I have read of yours. I will certainly be back.
By the way, greed is the downfall of all who allow it to be their 'lifes' reason for being.
Dude...so on...I've needed a crobar to help pull my head out of my ying yang sometimes. I agree though bro....you elevate yourself by helping elevating others.
Gary - Grazie, I'll tell Baxter you send your regards:-)
Martha - Thanks, I appreciate that. Sad that the Greed for the superficial is some folks reason for being.
Larry - I could of used that crowbar five years ago:-) Love your last sentence.
My suggested title was going to be "As the Lockbox Turns" - but looks like ew might have to amend that... been thinking about you with recent investors dropping out of the market... I figured last year when this all started that we had 18 months. Well - we're coming up on the last 6 months - and it looks like those are going to be the most difficult.
We might be down - but we're not out!
I have really enjoyed reading your blog. I am relatively new to AR and have noticed you have received a lot of points and have achieved a remarkable high ranking. Congratulations! May I ask if you have had success in turning your high ranking into business? I am curious if it has been a profitable venture personally as well as financially. Thanks for sharing and best of luck in your business.
Eleanor - That's not a bad title, perhaps you and Bill can be the brains behind the sitcom:-) It's round 13, put the mouthpiece in and come out swinging:-)
James - Well, thank you. I have gotten business (actual closings) and a ton of contacts from AR. I foresee more to come as long as I stay the course.
Jason, I am looking for a nice shower curtain, too. Especially since they have the practical function of preventing water. Let me know how that works for ya.