Is it the "Brokers" fault?
Ok, the question in my mind is. Why is it that the real estate market or, better yet the "brokers" allow young people to solicit real estate loans and transactions? I know that there are rules, but trust me I know that most have you have seen this rule get broken in many cases. Wow, In my case i was unable to join this market until I was licensed to do so. When the market came to a halt and everybody started panicking because the subprime market fell, I was preparing myself to get things done the right way. All these young people were just trying to make money quick, not worrying about building a successful business. They all bought expensive cars and expensive clothing, now most of them are back barely able to make the bills and are now working a 9 to 5 job. Also this all hit brokers that were focused on running "sweat shops" where teenagers were running the office and the branch manager is the only one with the license.
Hmmm? That brings up a couple of questions. Some people ask why is the market so bad? or, Why are all these people losing their homes? Well remember most of the un educated people selling these loans sold the loan that paid the most yield spread. HMMM I wonder what loan that was, oh wait I remember the "Option Arm Loan". Me and my colleagues saw this horrible loan and wished it would disappear for we knew what it would do to people and their livelihood. Supposed "Loan Officers" and Real Estate agents teamed up to offer this loan.
They were using quotes like "Buy a $500k house with a payment of $1,500 a month!!!” Oh but we won’t show you the fine print that says: "After three years you will not be able to afford this house and you’re going to lose it, As well as ruin your credit".
I’m happy the way the market has gone because it leaves only the best of us, as well as the successful.
Yancy Martin
Real Estate Finance