Mortgage Market Share Report October 2010

“I would tell you that we?re probably there,?we are probably tighter than we need to be.?

~ William Emerson, CEO Quicken Loans, Inc.

In case you haven?t noticed, the purchase market is quite soft. July through October deed recordings were down a whopping twenty-nine percent compared to the same four months in 2009. (757 to 540) How quickly things change. After the first six months of 2010 that number was up seventeen percent. Now, after ten months the comparisons show a total market decline of five percent. (1561 to 1482)

Clearly all the homebuyer tax credits achieved was to accelerate business into the second quarter that probably would have closed in the third quarter. There?s no evidence that the credits brought new buyers into the market. By year end the decline will be even greater since homebuyer tax credits were driving business at the end of last year.

In an interview with Al Yoon of Reuters? last week, William Emerson said what we all know. The credit pendulum has swung too far to the conservative side. And he doesn?t see that changing for another two years. That?s worrisome.

In a related matter, J.D. Powers and Associates reported November 18^th that the length of time from loan application to closing has increased again to 52.1 days?the third year in a row. Not surprisingly, consumer satisfaction with the mortgage origination process continues to decline over the same period. Consumer satisfaction with big banks scored even worse on servicing issues. Here are links if you want to take a look. ?Origination Survey. Servicing Survey.

So, fewer people are buying. More people don?t qualify. For those that do the process takes longer, is less satisfying and the experience tends to get worse if you have to deal with the bank on a servicing issue.

And big banks wonder why no one will believe their characterization of problems with foreclosure affidavits as ?technical.?

Despite the challenges of the market place, 2010 has been a great year for our company. Everyone here at the World Headquarters wishes to extend many thanks to all our clients and associates for your confidence in us. We all hope that you have a wonderful holiday season and come back renewed and refreshed to pursue the opportunities that await us in 2011.

~John Bethell