Mortgage industry is collapsing

I have heard from multiple people that the collapse is well on it’s way. They are laying off staff and many homes will go under water…this happened under in 2008 and it took a decade to recover…so I am just wondering how is everyone holding up through this transition period?

Me personally, looking at it as a pandemic and/or a stock market crash. Happens at least once in a lifetime, and when the bubble gets too inflated, it “pops.” Then we correct!

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(CA) I’m still pretty busy but there are gaps in my schedule that I don’t like. But I work on GNW during the lulls.

As I have predicted before, there will be a lot of foreclosures and short sales before year-end in my view. I find that many people are “house rich” but “cash poor” and they will need to borrow against their equity to survive $7 per gallon gas and $30 chicken. If the banks even allow them to draw on their equity lines of credit. I think the banks learned their lesson in 2008/2009 with HELOCs and will freeze those lines of credit with increasing regularity.

Home sales are going to be slow because no one but the cash rich can afford them. Take a look at Zillow, the so-called leader in the residential home sale market. That stock has fallen from a 52 week high of $125 and it closed today at $37. What does that tell you? They just had one of their best quarters ever and the stock tanked because the crazy-happy-nutty days of astronomical home prices are O-V-E-R. And, Zillow outsmarted themselves when they bought up houses that they were gonna fix up and sell for a profit. The scheme backfired and now look.

I think it’s smart to lay low, don’t spend too much, eliminate debt and ride out the coming recession. Lay in supplies (notary and otherwise because we’re in for lots of strange shortages), study and train if you’re gonna remain in this business and build relationships that you can count on when things improve. It’s pretty simple, all this, really.

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I am still busy to my surprise. What I have noticed though is an increase daily for reverse Mortgage closings and HELOC closings.

Yep! My next 2 signings are HELOC’s

Seller pkgs. here…and business down 75% from last 2 yr. highs. Or half of ‘normal’. Old Chinese curse: May you live in interesting times. We surely are doing just that. Side note: Zillow price estimates around here are still so far out of whack with reality–double what stuff actually sells for. Oh, the joys of a bad algorithm.

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