Those of you who read my posts on other blogs know I'm always to the point and try to keep it upbeat while spewing facts. It seems it has been a year and 2 months since I last posted an article on RealTown and that's because I've been kind of busy! If you read that post you know I was going on about ridding my industry, the mortgage industry, of uneducated and unwilling to be educated loan officers. I was calling for mandatory licensing of all loan officers including those employed at FDIC and other regulated national and federal banks.

In the same breath I was calling for more educated borrowers. I was concerned that we would, well, be where we are today. Actually and honestly I didn't think it would get this bad. I underestimated the fallout. The trouble is when I estimated problems last year I thought we would be down 20-30% in volume at this point and continue to drop to mid-2009.

Well ...

Dropping continuously in many markets until 2009 doesn't appear to be a problem. The fact that we are down in volume as much as 50% today means we're headed even farther down. This could get tough.

Fear not, I have the answer.

Feds - hands off. States - hands off. Your job is to educate and by that I mean the public. We want licensed and credentialed loan officers. We want borrowers who know how to read a HUD-1 and manage their own credit. Why are we not examining the consumer credit on these people who are defaulting on their home loans?

When I was younger you only found wealthy people living in mansions and driving luxury automobiles, eating at the finest restaurants and going on shopping sprees. Not today! Today you have hundreds of thousands of people who are living so far above their means there is no possible way they can afford a home that they may otherwise have been able to afford.

The industry has learned a lesson that will not stick. The legislation of today will not be the cure of tomorrow. The legislation being tabled today will only cure what happened yesterday. The same type of people who ruined all this for us all today will find new ways to do it again in the future.

Therein lies the problem. It's a vicious cycle and yesterday cannot see tomorrow. Unfortunately neither can today.

Having said all that there is a way we can cure it. We need reasonable and common sense finance solutions. We also need tighter rains on CONSUMER CREDIT. I submit that consumer credit is far more the problem today than mortgage credit. Why aren't we jumping up and down about consumer credit? People with $400 monthly credit card bills could easily afford their house payment if they didn't have the credit card bill!

People - STOP CHARGING, START SAVING and LIVE WITH YOUR MEANS!

Other than that if you are in need of FHA or Fannie Mae financial solutions for your real estate and you live in Georgia or Florida or if you need help with your Commercial Financing Nationwide give us a call at 866-946-0120