Peruse the news wires or blogs and you’ll find countless posts on mortgage lenders shutting their doors, laying off lenders, and more. There is even an entire site devoted to “the mortgage lender implosion”.
But as Misty Williams reports in the East Valley Tribune, some lenders are actually hiring.
Scottsdale-based State Mortgage has added 12 to 15 new people, mostly loan officers, in the past six to eight weeks.
. . .
AmeriFirst Financial in Mesa has added 70 to 80 people in the past six months, bringing its total number of loan officers to more than 200.
Perhaps this is a good sign. Only time will tell.
On the real estate sales side, we have noticed a definite up tick in buyer inquiries. Serious buyer inquiries. Other Phoenix area agents have noted recent buyer activity as well.
I wouldn’t be so bold as to say the market is turning. There are still a ton of listings on the market and aggressive pricing is still very necessary to move a home in any reasonable amount of time.
But the time between Thanksgiving and New Year’s is historically the slowest time of the year for home sales. It’s encouraging to hear about lenders hiring and agents seeing increased buyer activity.
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That would be good news if as you say there is an upswing in the US mortgage market. The ongoing crisis has been having a negative ripple effect on world markets, because US financial cues impact stock markets the world over.
A lot of good lending companies are hiring, because good displaced loan officers are looking for better new homes. I know for instant that State Mortgage is known as one of the best mortgage companies to work for in the valley. I also interviewed with the president in the past, and I know he only hires the best. (Yes I got offered a job) This might be why some companies are growing. Just thought I would throw in my 2 cents about lender land.
Speaking of which, I’ve been meaning to write a post on this.
These are my guesses.
Calendar 2007 will be the bottom for number of sales. 1) Sales in 2007 were incredibly low. 2) Prices in 2008 will be lower. 3) There is a lot of pent up demand.
I don’t expect sales to be a lot higher in 2008, it will still be a bad year. However, lenders and Realtors as a whole will make more money as the number of sales increase. This won’t help home sellers because prices will continue to fall.
First half of 2008 will be the peak for the number of foreclosures. (I stole this idea, more or less, from Tom Ruff.)
January 2009 closings will be the bottom for median home price.
I reserve the right to change my opinion after breakfast… after every breakfast.
At our local level we are seeing these same indicators. And frankly, more activity than we see in a normal winter season.
I’m definitely seeing an uptick in my business, after a slight slowdown in the fall. Most buyers I’m working with now are coming in with good-sized downpayments. Those that don’t have the upfront cash are still finding loan programs that are very reasonable. I’ve even got a transaction in process that’s a no-doc loan. Inquiries for next year purchases are on the upswing, too.
Let us hope that this is an indication of the worst being over.
Jay,
The reason banks and lenders are hiring is because there is a fundamental shift going on in the mortgage industry. Brokers are being squeezed out and major lenders are focusing on bringing their loan production in house to their retail divisions.
There are a lot of layoff announcements and the best employees are being hired either by the competition or the retail side.
Those that don’t make the cut are finding new careers.
Great Blog. This is my first time here.
I think with the Dec Fed rate cut on the horrizion as the media covers it the consumer is going to start to fell a good “deal” is close. I have been in contact with alot more clients getting excited about Real Estate again.
Have a great weekend in Phoenix!
“Great Blog. This is my first time here.”
Well thanks Brian. And hopefully not the last!
Nice place you have too. Added to my feed reader.
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