Loan Officers Concentrate On Purchase Mortgage Loans In 2014

Moe Bedard

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Staff member
Loan Safe Mortgage
Aug 10, 2007
Southern California
Mortgage times are tough for many loan officers all across the country. In fact, this may be one of the most difficult times in the past 15 years to make a living in the mortgage industry. Unfortunately, it looks like things will not get easier anytime soon. The severe lack of borrowers not able to refinance their homes coupled with the lack of housing inventory has caused purchase loan originations to go down big time.

Those borrowers who can refinance with great credit scores are often tech savvy, and are able to shop rates in order to the best mortgage deal with the lowest fees. More often than not, these prime borrowers deal directly with bank loan officers or internet mortgage companies who are able to offer better rates on their prime or jumbo loans than loan officers who work for mortgage brokers or banks who broker loans. There are refis happening out there for many creative loan officers. More often than not, this business is coming from niche mortgage products such as FHA, VA , and even Alt-A or subprime niche mortgages. However, the refi business is slim and also very competitive making it difficult for everyone involved in these type of loans.

This is why many loan officers I have spoken with recently are targeting the real estate purchase mortgage market simply because their refinancing business has dried up. However, this is easier said than done since there is a severe lack of housing inventory and the mortgage market is still one of the most competitive as it has ever been.

To make it in today’s market, loan officers need to have thick skin, be creative and also the ability to adapt quickly to market changes. This is why in 2014, loan officers need to have a strong focus on marketing for purchase money leads and loan originations. If they are not, more than likely they will sink along with rest of the refinancing ship.

If you agree or disagree, please let your voice be heard below.

(Source: The Loan Safe Blog)