Industry News

The new mortgage market: Think 1999

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Editor's note: Brian Brady, a nationwide loan originator who works primarily with California real estate agents and is a blogger, engages in a Q&A with Inman News columnist Alison Rogers, the "Real Estate Rookie." Brady shares his insights about how to reach out to a client, capture them as a lead, work the lead and close it. He discusses the current mortgage market, the goal of social media marketing, and what it takes to catch a client. ROOKIE: Tell me about what the mortgage market looks like. BRIAN BRADY: The world has been reset to 1999 in terms of underwriting guidelines. Bankers consistently react badly to market conditions. When there's euphoria they loosen, and when there's fear they tighten. That's the opposite of what they should do. The smartest thing I've seen done in 15 years, in terms of financial engineering to market conditions, is the use of 125 percent LTVs (loan-to-value-ratio loans, these so-called "no-equity" loans allowed you ...