Mortgage Banking

If you read the headlines, listen to others and mope about, this year will be exactly what you expect it will be…bad. But if you focus on the positive aspects of this market, there is the potential for 2009 to be a great year. What are those positives???

• Lenders with Money – Though banks and others are on the sidelines, Fannie Mae, Freddie Mac, and Life Insurance companies are still lending. Each January Life companies get a new bucket of money to lend. They are not lending on every deal but for the right one, there are lenders out there. Fannie and Freddie are (for the moment) government controlled, so they won’t stop lending either.
• Opportunities to Buy – With many Commercial Real Estate owners struggling, properties will need to be sold quickly or lenders will take them over. And since lenders are in the lending business not the property owning business, lenders will divest these properties as soon as possible. Someone with real estate experience and a solid team of experts (lender, RE broker, attorney, etc.) can take advantage of these opportunities to purchase real estate at a great deal.
• Opportunities to Refinance – Rates are still at historical lows compared to a decade or two ago. If you are a property owner, the ability to lock in these low rates  for 10+ years is a fantastic opportunity. It is hard to say if/when rates will be this low again.