John Meussner, #MortgageMadeEasy Fair Oaks, CA 484-680-4852 (Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI)

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Rainmaker
1,293,341
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Very interesting, John Meussner,  and not really a surprise in the current market. With rates up, there are fewer refinances and fewer purchases...thus fewer mortgages.

If there is any doubt about how it is affecting the mortgage industry, check out this very recent article - Mortgage Company Problems. Scroll down to the VERY LONG LIST of lenders laying off employees, and lendes closing down or being closed down.

 

Oct 17, 2023 03:16 PM
Ambassador
3,338,624
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

And why planning and saving are essential. When the drought years hit, and they always will, we need reserves to keep the lights on. 

Oct 17, 2023 02:14 PM
Rainmaker
638,985
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

I had no idea that is the case, and sorry to hear that actually.  Losing money is not a good business model for anyone. I trust that your practices are designed to avoid the "average".

Oct 17, 2023 01:00 PM
Rainmaker
897,538
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Banks are not in business to lose money. Somewhere they are making up for it.

Oct 17, 2023 12:30 PM
Rainmaker
1,839,526
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

I did know that was possible. Thanks for educating us.

Oct 17, 2023 12:11 PM
Ambassador
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

gotta have volume to make money in that business.... it's a numbers game and some years are profit and some are loss.

Oct 17, 2023 04:00 PM
Rainer
373,470
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

must be why my banks stocks are down.

Oct 17, 2023 03:43 PM
Ambassador
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Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

You are correct, John, one of my favorite lenders agreed with your statement!

Oct 17, 2023 03:28 PM
Rainmaker
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Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

Thanks for sharing, no idea this was possible.

Oct 17, 2023 02:25 PM
Rainmaker
2,372,460
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I had no clue John Meussner . I assume that would be in the initial year and not over the life of the loan if the loan is kept "in house". Would they still have a net lose after selling the loan?

Oct 17, 2023 12:45 PM
Rainmaker
2,775,186
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The high cost of living, making a living and running a business is no respecter of persons, places, or things. We need a reset & if not, What?

Oct 17, 2023 02:42 PM
Rainmaker
780,224
Abby Stiller
TOP SELLING REALTY - Cape Coral, FL
SW Florida (239) 284-8637

I didn't know this John. Thanks for the information. 

Oct 17, 2023 06:25 PM
Rainmaker
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Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Interesting information. How do they stay in business? 

Oct 17, 2023 04:52 PM
Rainmaker
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Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

Tomorrow marks the 36 year anniversary of the largest stock market crash since the Great Depression.  I was working as a residential real estate lender for a midwest bank as part of their CA presence in the CA mortgage market.  I had just left Security Pacific National Bank (at the time, the country's 6th largest) and we had fixed rate loans compared to the flagship product of ARMs from our competitors--Home Savings and Great Western Savings.  Anyone remember those three???  Anyway, when the market crashed, our fax machine went nuts and we raised rates 3 times that afternoon.  It was crazy.  Not one of our loan agents had their phone ring for the next 30 or 31 days...  My takeaway was to always try to keep your pipeline full.  The stock market did a rather quick recover (I read somewhere it was back to where it was pre-crash within about 150 days; so never panic).

Oct 18, 2023 02:47 PM
Rainmaker
5,189,410
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Yes, mortgage brokers and bankers can lose big time with their credit line fluctuating rate and sale of loans into the secondary market. It is a science of lucky guesses in an uncertain world. Nobody rolls the dice correctly every time.

Oct 18, 2023 04:49 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Sorry to hear this John, what is the solution?  Raise the price that they charge, or cut the cost of buildings, salaries, and other tools of the trade?

Oct 17, 2023 07:41 PM
Ambassador
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Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I did not know that.  It sounds like a pretty cutthroat business.

Oct 18, 2023 03:50 AM
Rainmaker
706,622
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

I am not surprised.  With the refinance market gone, there are fewer ways for lenders to make money today.  Tough times for many.

Oct 18, 2023 11:15 AM
Rainmaker
898,042
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
NC Real Estate Transition & Relocation 919-602-848

Yes, I heard that recently. I also heard many lenders will be leaving the business since both purchase and refi business have decreased. It's a crazy time. I'm hoping something changes for us all.

Oct 18, 2023 06:45 AM
Rainmaker
2,873,155
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

John Meussner - Thanks for the education on "mortage lenders LOSE money." I recently thought about this, but not in the depth you explained. In a recent listing, the Buyer's Agent had a qualified Buyer from a reputable mortgage lender. Eight days before closing the buyer switched lenders. It did close successfully, but even though it wasn't my client, or a lender I knew who lost, I was sick about it and my heart strings pulled for Lender #1. 

Oct 18, 2023 06:19 AM
Rainer
195,422
Karen Climer
Demetree School of Real Estate - Orlando, FL
Teaching people to pass the real estate exam

As many others have said, I didn't realize that.  In hindsight, though, we all should have known it.  It's just like the real estate business - some years are good, some are bad.  You have to save in the good years to make it through the bad years.

Oct 18, 2023 05:30 AM
Ambassador
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Thanks for sharing, John Meussner .

And when agents send you a challenging buyer or one who has been to multiple other lenders, there is also money and time lost. 

Oct 18, 2023 03:43 PM
Rainmaker
4,896,660
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Wow John, I did not know this but I know one of my lenders only has two people in his office anymore.

Oct 18, 2023 09:19 AM
Rainmaker
5,095,966
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

That totally explains why so many lenders are going out of business these days and couple that with fewer mortgage applications... we can expect more to disappear.

Oct 18, 2023 05:30 AM
Rainmaker
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Elyse Berman, PA
LoKation Real Estate - Boca Raton, FL
Boca Raton FL (561) 716-7824

I knew things had slowed down but didn't realize it was this bad.  Thank you for enlightening us, John.    I hope things stay busy enough for you.   

Oct 21, 2023 06:33 PM
Rainmaker
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Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Interesting. I had an impression that the lenders&bankers are there to make good money. 

Oct 21, 2023 12:12 AM
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Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

I was not aware of that statistic, John but, it really drives home that point that planning is everything. Those who fail to plan, do indeed, fail.

Oct 19, 2023 09:50 PM
Rainmaker
2,233,260
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Loss leaders, every business has something that's comes with the territory and there are plenty of income trails to offset if a lender runs a tight ship. Cruising their facility looking for slack.

Oct 19, 2023 04:17 AM