As a manager in the real estate industry I am speechless at the lack of education much of the top talent has today. I think I have been able to at least put some clarity on the issue using an analogy.
I can not say I enjoy barefoot waterskiing as much as I used to - it seems to hurt a bit more these days. For several years though we found ourselves at Center Hill lake going up and down skiers cove. During the summer we didn’t have to worry about hitting much of anything because Center Hill is one of the deeper lakes around. But in September the water level would be lower and we found ourselves on the lookout for each tree branch and stump. We navigated the water with a lot of knowledge and caution.
Many of our industries top producers were seen as those that knew solutions to help homeowners navigate the homebuying process. It was if they were barefoot skiing while the water level was up - the water level being their volume. They had a talent in navigating through an automated process. Today though their lack of industry knowledge is appearing behind each corner and causing casualties throughout the process. They are unable to discuss the basic principles behind quality underwriting and how to structure a loan.
For the past 30 days I have interviewed several individuals who I thought had a good business model. I have found though that the majority of talent will have to take a step back and completely re-learn our industry if they are to succeed tomorrow. These top producers would tell you though that the problem is the company (lake) and they are going to keep setting their sights on a lake that wouldn’t have these dangers. The problem though is NOT the lake but rather the season. The season today does not cater to those that just know how to input a loan and read findings. It only will cater to those who have a deep understanding of credit, capacity and collateral.
For me this is a good thing because I fell in love with this model over 20 years ago. For the past 10 years, sure we made good money. I didn’t feel as though someone like myself had much to offer because we simply did what the computer findings asked us to do. I am looking forward to our future in the industry as once again it is something we can take pride in outlearning and outknowing the competition. Thats the fun stuff!
Greg...I think we are back in style. People who actually know mortgage lending. Scott Layden
Posted by: Scott Layden | 12/07/2010 at 10:13 AM