The Board By-Laws Code of Ethics Mission Statement Past Presidents IAMP Anti-Trust Policy

June, 2010

Do you wonder at the marvelous times we live in? Have you declared your “Housing Industry Recovery” yet?

For consumers applying for mortgages to purchase new homes the news is great! Rates are at historic lows (again and again), underwriting guidelines assure they are not overextended on the mortgage, and homes have not been this affordable for decades (maybe never if we adjust for inflation, etc.).

But you know that is not the whole story, right? Everyone I talk to is Paul Harvey, telling me “the rest of the story”. Lowest rates in history for 8 weeks in a row, and during the same 8 weeks, mortgage applications dropped each week. Refinances are next to impossible. The agencies are again tightening guidelines, loan level adjustments will stay (you know, the ones that were instituted 2/25/2008 to insure short term liquidity that have turned into “mortgage taxes” levied by the banks on consumers, and we all know a tax never goes away). At the same time the agencies continue to contract lending through tougher guidelines, FHA (you know, the one that whined for years about not having any market share and glowed during the first three quarters of 2009 by capturing 50% or more of the market) is now complaining about having too much market share and has proposed an increase in monthly MIP premiums designed to limit FHA lending capacity (you know, to assure the health of the housing industry) and allow the private mortgage insurance companies an opportunity to reenter the market.

Did FHA ask the private mortgage insurance companies if they were ready to reenter the market? (It doesn’t look like they are, based on the limits they have established.)

What is the point? We are in a messy, jobless recovery. Every recovery is a jobless recovery, but maybe they are not all so messy. But this is the one we have. And it could be worse.

I know we are all tired of hearing about the opportunities of tough economic times and the value of getting back to the basics. But just because we are annoyed, does not make the message meaningless.

We are the elite sales force of the housing industry. It is time for us to straighten our backs and act like it. We have to get the word out that this is the best time in the history of America to take out a mortgage. There are tens of thousands of people who qualify for a refinance, would benefit from a refinance that are waiting. Waiting for what? Why? Out of fear? Because they think rates will go down? It is our job to find out why. It is our job to point out the very real risk/reward scenarios. And the risk of rates going up sharply and quickly is much greater that the minimal reward of modest further improvement. Start educating people. You may get a loan out of it.

And while we start telling everyone what an amazing opportunity everyone who is looking for a mortgage has right now, we need to protect our ability to do this job.

We need to let consumers know that government initiatives are limiting their mortgage options. We need to ask them if they care. If the only options left are getting mortgages at the bank, will it be harder for them? Do they think banks will charge less if they don’t have to compete with small business mortgage loan originators? We need to talk to our legislators and tell them what our customers are telling us. We need to let them know how the proposed legislation will affect our consumers, their constituents. Do they want to be responsible for a lost decade in the housing industry? What will that do to the GDP? How will it affect their constituents?

IAMP has made it as easy as possible to respond to the call-to-actions. By clicking to the option to go to our legislative site, all you have to do is type in your name, address and zip code and the site will automatically deliver the email to your legislators. And if you save your information in the site, it is even easier.

Yet our call-to-action emails have been largely ignored. If you don’t want to fight for your consumers’ right to have a competitive choice, then fight for your ability to earn a living. Either way, it takes less than a minute, so just click through and do it.

In addition to making it easy to get in touch with your legislators, IAMP is working with two news papers to promote Town Hall meetings with consumers; one in the Chicago area and one in Springfield. It is time to re-establish ourselves as the most qualified, highest trained, credible and consumer-oriented mortgage professionals. We have a great message, the time is right and we are creating a forum to help get the message to consumers. We are taking the fight for market share to the street! The project in the Chicago area will be coupled with a special pull out section of the paper – members will be able to advertise for reduced rates, and we will have control of content. This is the first step in a campaign designed to recapture market share!

If you have some ideas and want to help with the Town Hall meeting, give me a call! If you don’t know how to get started, call me. If you are feeling a bit hopeless, call me. We need your help. I need your input. Call with complaints, ideas and just to complain. 630-247-7235.

Words of encouragement accepted, not necessary.

Jeri Lynn Fox
President, Illinois Association of Mortgage Professionals