Archive for January, 2010
I was reading the NY Times recently and came across an interesting article. It has to do with the professionalism and knowledge of mortgage loan originators. As you might imagine, this affects my business so it piqued my attention. The ability of a loan originator to get transactions closed cuts down on headaches and frustration for buyers–and their realtors.
It seems that something called the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) was passed by Congress in July 2008 and required states to pass legislation requiring the licensure of mortgage loan originators. The SAFE Act mandated that state agencies participate in the Nationwide Mortgage Licensing System and Registry (NMLS) and that mortgage brokers meet national standards in order to obtain a license.
Testing began in summer 2009. Now that results are starting to trickle in it appears a substantial of mortgage brokers have a lot more work to do to meet standards. Some 10,000 people have taken the tests and more than 30% failed the federal portion. The number of failures on the applicable state portions was slightly less – 27%. All in all, that’s a pretty sad state of affairs.
I would like to think Arkansas’ brokers are a cut above those dismal test results. At least our area did not suffer the horrendous housing collapse that occurred in many states where many unqualified borrowers were given loans they had little ability to repay.
Nineteen states have offered the tests to date, including Arkansas where tests began November 1, 2009. So far I haven’t been able to find results specific to Arkansas.
When a buyer asks me for recommendations about the best place to obtain a mortgage, I usually refer them to few trusted people at local companies who have done a good job in the past for my clients. I don’t necessarily trust some of the on-line lenders that advertise frequently on TV. Sometimes you get a good loan originator, sometimes not.
The other thing to look for is whether you are dealing with a mortgage broker or a bank. A bank will process the loan according to its guidelines. Sometimes they keep the loan and sometimes they will sell it to another lending institution. A mortgage broker has a lot of “investors” (usually banks) to whom they will sell the loan. Some have better relationships with their investors than others and are better able to exert pressure to get problems solved and the transaction closed. Banks who regularly sell their loans also need to have such relationships, but even the experience (or lack thereof) of loan originators within their own institutions can sometimes make or break a transaction.
A proven track record speaks volumes. A good, experienced, and knowledgeable loan originator is important, and the same is true for the realtor you select.
For more information:
http://mortgage.nationwidelicensingsystem.org/safe/Pages/default.aspx
http://www.nytimes.com/2009/12/27/realestate/27mort.html?
http://www.securities.arkansas.gov/page/338/mortgage-loan
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This was my first time being “behind the scenes” with Inman News at Real Estate Connect NYC. Having worked directly with agents and brokers prior to coming to Inman, this time at Connect I listened with a new set of eyes.
I kept thinking, “If I was a Realtor, what would be my big take-away from Connect?”
At opening session, Brad Inman talked about 2 things that caught my attention:
1. The world is changing – real time search, location, news, comments, reviews, auctions and collaboration, and of course real estate.
2. In this age of “digital addiction” take time to “look up” and connect with people face to face.
So taking those two things into consideration, if I was a Realtor – here would be the 2 big things I would implement ASAP into my business:
1. Mobile technology. If I was a Realtor I would make sure that I had a mobile strategy in place. In his opening message, Brad Inman, Publisher, Inman News said, “One of the biggest shifts we are seeing is the increase in real time data.” Tools like mobile applications, Twitter and Facebook, are impacting how quickly information is distributed. Inman predicts that one of the big trends in 2010 will be mobile apps that are able to filter and organize this data. Real time search, real time location, real time agent feedback, and real time real estate listing information will be major trends we will see in 2010. “Those agents that adopt technology will close more transactions because they will be more efficient,” say Inman.
If I were a Realtor I would make sure I looked at things like:
- Does my brokerage have a mobile app? What about my MLS?
- Is it worth me investing in my own mobile app? iSites, a new service launching today, allows you to take your website’s RSS feed and data and quickly transform it into a full-fledged iPhone app. It was created by Genwi, a service that combines aspects of RSS reader, social network and news filter. For just $25, iSites will create a customized iPhone and Android app for you.
- What type of local data can I have right at my fingertips on my mobile phone? Yelp is a great place to start. Foursquare is another great local app that is getting a ton of attention, especially after Dennis Crowley spoke at Connect – and we all had an “a-ha” moment!
Mike Mangino, Owner & President, Elevated Rails talked about some of the key apps to have on your mobile phone to help you do your business better:
- Navigation tool
- Access to your CRM tool
- A simple mortgage calculator app you can use with clients
- Social Media apps: TweetDeck, Tweetie 2 or Hootsuite, Facebook and Linked-In apps
- I’m adding to this list – WordPress app – a must if your blog is hosted on WP.
2. Connect with people face to face. One of the biggest challenges Realtors face is meeting new potential clients face-to-face. Now is the time to ‘look up!’
Scott Heiferman, co-founder and CEO of meetup.com was one of the final keynote speakers at Connect and talked about the power of connecting with people live and face to face. People are creating their own self organized groups.
There are 5.7 million Meetup.com members in nearly 59,000 local groups in more than 11,000 cities, according to the company’s site.
Agents can not only join a meetup for local real estate professionals, but they can connect with local real estate buyers groups and sponsor non-real-estate-related groups.
I love this concept – especially for an agent trying to break into a new market niche or community, or just for an agent trying to expand their sphere of influence, this is the perfect opportunity for them.
The message is: be the catalyst for community in your business – online and offline in 2010.
Stay tuned for more about Connect. Inman News will be publishing a comprehensive report next week. Also check out inman.com this week – videos are available for Inman Premium Members. Not a member? Sign up by this Friday, January 22nd and get a special rate of only $99 (reg. price $149)
Written by: Katie Lance, Marketing Manager, Inman News
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The world’s tallest building is now open in Dubai. Christopher Corbett takes you up to the 124th floor.
Last month the NWMLS amended some of the most frequently used state-wide forms. This piece will address some of the changes to the financing contingency forms, and those related thereto.
A growing problem in this state is litigation over the effect of easements. Easements are very useful and necessary, but the problem is many of them are poorly drafted, or even sometimes so old it’s hard to determine their exact wording. Since most of them don’t expire, and more and more of them are created, the potential for problems will compound.
The editors’ choice of the most significant stories in the realm of urban planning, design and development of the “aughts” (2000-2009). The decade began with one crash and ended with another, but in between we’ve learned a lot about making cities.
