The doors keep closing….the loopholes get shut and the list gets shorter…the FHA announcement we heard was coming is out and it says the following:
--FHA has a Chief Risk Officer…it’s about time!!!good news for us tax payers!
--FHA “seeks to align with the Administration’s goal of regulatory reform”…
ie: we are catching up and have the carte blanche to do what we need to without the public, lender lobbyists or legislators fighting us
--Audited Financials for everyone!!! more costs to pass on...
--Streamlines are no longer ticking time bombs handed from one sucker to another…if you receive the loan you actually have to make sure they qualify…this will kill whole sections of mortgage people who have leaned on the brain-dead origination approach of streamlines….
--HVCC for FHA appraisals…so you think it’s going away for Conforming? Not with a vote of confidence like this…again loophole shut…
--Increased Net Worth requirements to $1M…..nuff said…
This is a scale business now more than ever that now adds a true level of high stakes liability. You cannot be small and play the game fully..bottomline. You need to be a lender with multi million $ pockets for lines, licenses, bonds and the Govt. You may be able to survive as a boutique serving a limited target market but then be exposed to changes in the market working a monoline business....will there be exceptions? sure and I'm looking forward to see those entrepreneurs succeed but they will be the few, the proud....and be walking the razor's edge every day...you have to ask whether that is what you want to do and whether you can personally take the toll...
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