As I'm sure you do as well - I see so many regulation enforcement issues, arrests, fraud blogs, convictions, license revocations, law suits, and jail sentences in various publication lately, I am astonished at the lawless natural of our industry now days. Astonished is really an understatement, I'm even more shocked then that! It's turned into such a mess, and I don't really see any concrete solutions being offer up by many people.

However, I want to offer up a solution, which I know in the long run will solve this epidemic of greed that seems to be growing. Just like in college, where people have a Major and a Minor when they graduate and are degreed - we need a national mandatory licensing program at the industry entry level position of Loan Officer - a serious one. One part of getting licensed is they need to be educated and certified by an a authorization certification board and have a Major in Underwriting and a Minor in Processing. Any sales background should a No-No PERIOD.

Those two 'training required' skill sets are truly what separates one good Loan Officer or Mortgage Broker from another. Far too many have only a sales mentality. The originator position needs to be no longer be thought of as a 'sales' position. It's that DNA, when coupled with 'commissions' which has evolved us into the mess we see in our industry today.

Reducing commissions to small incentive bonuses (when certain goals are met), on top of W-2 salaries for LO's and staying away from the sales-type DNA, but instead hire for good customer service skills, and train to that end while introducing the underwriting and processing theory to the new LO, is exactly what I mean. Sound revolutionary? Nope, what I describe is how the subprime industry worked when I got hired in my early 20's, and how it was for the first 90 years of its existence. It's a tried and true operational standard. Said bluntly: Big commissions breed fraud.

To start this evolution into your industry sector, I call upon shop owners all across the Country, to begin immediately hiring and training in this new direction; I'm certain you'll see the benefits very shortly in your own company. I've done it, seen it done by others, trained it myself, and watched it work for me personally and others for many decades.
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What the Government Says Today
The Federal Reserve Board is reporting that demand for residential mortgages continued to decline in most sections of the country in early April, and residential sales and house price increases are slowing. "The pace of housing market activity is said to be moderating" in many of the 12 Federal Reserve Bank districts, according to the Fed's Beige Book. "[M]ost districts reporting on financial services continue to see decreases in demand for consumer loans and residential mortgages," the Fed report says. Separately, Fed Chairman Ben Bernanke told Congress that the housing sector "will likely experience a gradual cooling rather than a sharp slowdown." However, the Fed continues to monitor housing markets because there is a risk that a slowdown could be "more pronounced than we currently expect," Mr. Bernanke testified. CLICK HERE and give us your two cents on our Discussion Board




Something On Your Mind?
If you would enjoy writing a short industry relevant article (approximately 500 words) for this monthly newsletter; please contact us. We would love to add your voice to this publication next month, or the month after that. Maybe you've got a compelling viewpoint, so give it a shot - it could possibly turn into another career and you'll become famous! CLICK HERE and Send us your Article

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Our Master Seminar. You're invited to join us for an all day Live chat, a Conversation with Secret! "Learn easier ways to operate your business™" Sat. May 20th in So Calif. to RSVP Click Here!

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The next class is May 21st, make it a two day session with us, come to our 'chat' (day before) plus this class. Even if you have a website now, we'll show you how to enable the website you get with this class, to make your job more productive. Click Here and register for our live Website & Internet Originations class now.

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Even if you can't sell a bucket of rocks, our CD Lessons, titled Secrets of the Mortgage Industry™ cover many vital issues - there's lots more to it than 'selling' Click Here and see our latest offerings. We've got a Money Back Guarantee, plus a 99.692% customer satisfaction ranking too!

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Our E-Mail Answers Program might be just what you need. If you can't call our Hotline, and you don't need all the horsepower of one of our Mentors right now, but still need some help - then this program is for you. Click Here and check it out.

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Is the entry level position of Loan Officer a career position, or merely a steppingstone toward a higher goal?

If you are a loan originator today, then you're part of the largest segment of people employed in the residential real estate mortgage loan industry. Depending on historically where interest rate levels are (since most LO's are also conforming types), your brother and sister LO's are also the biggest portion of the churning mass of people who move in and out of employment in the biz. Therefore will you survive? Last few months and for the near future, many will be moving out of the industry. Do you exhibit the traits of someone who plans on remaining in your sales position, or do you study and plan for career growth, one day to possibly be the owner of your own shop?

This question is on the minds of many people we come in contact with - "Where do I go From Here?" Although this sales position can be emotionally fulfilling and financial rewarding; it seems most are looking to move up the ladder. If that's where your sights are set, what are you doing to get there from here? And if not, why not?

One thing to remember, with the proper planning and a clear game plan to follow, to start-up a business is fairly easy. However, to stay in business over time, is a much harder task. That takes a significant amount of understanding beyond the very basic skill sets most LO's have, some guidance by an experienced mentor, and a great deal of good luck (which you make for yourself). I say Good Luck!
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Rates Still Rising
The average 30-year fixed mortgage rate rose from 6.53% to 6.58% over the seven-day period ended April 27, representing its highest level since June 2002, according to Freddie Mac's Primary Mortgage Market Survey. Freddie Mac Primary Mortgage Market Survey (Seven Days Ending April 27, 2006).

The average 15-year fixed mortgage rate rose from 6.17% to 6.21%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages increased from 6.16% to 6.21%, and the average rate for one-year Treasury-indexed ARMs climbed from 5.63% to 5.68%, Freddie Mac reported. Fees and points averaged 0.5 of a point for fixed-rate mortgages, 0.6 of a point for hybrid ARMs, and 0.7 of a point for one-year ARMs. "Indications of a stronger economy gave rise to an increase in mortgage rates this week," said Frank Nothaft, Freddie Mac's chief economist. "Consumer confidence and existing-home sales unexpectedly rose. Much of this strength is attributed to a healthy labor market, which translates into greater consumer spending. This should support an active housing market over the next few months." A year ago, the average 30-year and 15-year fixed rates were 5.78% and 5.33%, respectively, and the average one-year ARM rate was 4.21%, Freddie Mac said.
CLICK IT and tell us what this means to you






Siete de Mayo Celebration & Sale
Our first annual Siete de Mayo Celebration & Sale will be held the full day Sunday, May 7th. It's the birthday of our Founder, so I guess some would call it maybe a President's Day Sale - but we're in Southern California, so this title seems more suitable.

This year we're offering a 25% discount on our unequaled one on one Mentor Program. Our faculty is beyond compare, with background experience that's first rate. CLICK HERE to read all about this program, and be prepared to pay your tuition when the price drops on the 7th!