In the past 5yrs or so, mortgage brokers/loan officers and real estate agents have been doing really well. Now that the market has changed and lenders less likely to hand out subprime mortgages, are these factors really impacting their income?
I know this kid who was a loan officer. He did really well the past few years and ended up buying a nice house a nice car. Just wondering if this is going to have an impact on people in similar situations?
2007-03-14 05:03:53 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The thing to consider here is that the prices of homes have gone up SIGNIFICANTLY in the last 5 years, atleast in my area.
A house that sold for $199 5 years ago now goes for $325. If an agent is getting a 3% commision the paycheck she would have gotten then was $5970. The paycheck now is 9750.
Yes, the market has slowed, but since prices are up, each check is larger. Thats a much bigger gain than just cost of living increases! That's 40%! That means she could sell 40% less homes and make the same $$ amount.
For mortgage brokers, it would depend on their average customers. If they cater mostly to the subprime market and there's been a significant change in policies, they could be hurting a bit. But again, they typically get a percentage, so they should make it through okay!
2007-03-14 05:32:02 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I have been an agent for quit some time. I am not "hurting" but i work very hard each day to build my business. The people who joined in when it was a snap to make money will be the ones who start to hurt. I know that there were about 5000 agents in our mls system and now we are down to around 3800. You will see more and more drop out each month. Real estate is a tough gig, and the people who jumped in on the gravy train will be gone.
RE Agent,
Remax
Oh yeah, we are not all scam artists. I don't even know what we could scam. You see a home, like it and buy it. Wheres the scam? We just guide people to make sure the process goes smoothly.
2007-03-14 12:37:11 · answer #2 · answered by frankie b 5 · 0⤊ 0⤋
In short...the mortgage industry has definately taken a beating what with the closure of many of the top subprime lenders recently. Some say the market is correcting itself; I believe it is. The market will get rid of the sneaks, the un-educated, and the ones that only have their interest in mind. I do not share the ideas of the poster before me. There are many good mortgage brokers out there and they will continue to do well, while serving their clients.
2007-03-14 05:16:01 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Yep. That kid will probably go broke soon. Many of those types of guys who make their living off subprime lending probably just lost 80% of their loans in process in the last 30 days, and will lose 80% of their future volume too.
Here's hoping all the crooks and morons who got into this industry in the past couple years all go broke and get the heck out of the business.
2007-03-14 05:52:28 · answer #4 · answered by Yanswersmonitorsarenazis 5 · 1⤊ 0⤋
Yes...They are only making 150 k a year rather then 175k --they are hurting really bad lol.
All sarcasim aside, most of these people still do quite well even in bad markets.
2007-03-14 05:15:29 · answer #5 · answered by Anonymous · 1⤊ 3⤋
no! htese people will come up with new scams to stay ahead of the game financially! they make so much money, if the whole market collapsed! they would still be doing good. i ahve never trusted these sneaky people, and never will! THEY COME UP WITH ALL! KINDS OF PLOYS AND SNEAKY SURCHARGES, JUST LIKE BANKERS DO! TO KEEP THEIR INCOMES UP!
2007-03-14 05:08:43 · answer #6 · answered by Anonymous · 1⤊ 3⤋