Originating Loans in Today's Mortgage Market

If you're a mortgage broker or loan officer, market conditions may have made you want to pull out your hair and scream. In spite of the negative and painful consequences of this fallout, there are positive steps you can take right now to improve your situation. There are also lessons each of us can learn that will prepare us for the future.

What actions can you do right now?

1. Be careful of lenders who discount rates. Ask yourself -- "Why is this lender so hungry for my business?" The lenders who are instable and less likely to be around tomorrow are also the ones most likely to discount.

2. Remain educated in what loan products are available and what scenarios they are best for. With the constant changes in the marketplace today, this means putting in extra time, but knowing what's out there may mean the difference between closing a loan and not closing it. Ask your lenders for training on their loan programs. They should also have product guidelines available for your use.

3. Become conscious of your attitude and how you talk to yourself. Some things can be changed and some cannot. A pessimistic and gloomy attitude does not improve the things that cannot change. Positive self-talk and a happy, hopeful attitude, however, can improve a situation. For starters, you'll feel better. You'll also have less stress, a clearer mind, and the ability to make better decisions. Your positive attitude will rub off on your clients and they'll be more likely to close a loan with you than if you had a bad attitude.

How can you prepare for the future?

1. Stay out of personal debt and keep business debt to a minimum. Pay off your house as quickly as possible. Purchase a car you can afford. Spend less than you make. You've heard it before, and there's a reason -- because it's good counsel.

2. Create a financial reserve. Saving money for emergencies both in your business and personal life will help you weather market maelstroms, will bring peace of mind, and will give you a better chance of surviving and making decisions based on long-term consequences.

3. Make choices based on a long-term perspective. This may mean working harder now for future profits. It definitely means keeping your integrity at all times, helping borrowers get the best loan product at the best rate (even if it means a lower yield for you ), and maintaining good relationships with your best lenders. Focus on building a good reputation and the investment will deliver great dividends.

In review, work with good lenders, remain educated, and keep a positive attitude; avoid debt, save for the future, and maintain a long-term perspective. Following these steps can help you weather today's storm and protect you against difficult times in the future.