Summer open-house season is upon us
The hot summer months have officially arrived, and July is historically one of the hottest months in both
temperature and home sales. In addition to backyard barbecues and lazy afternoons at the pool, July is
a prime month for open houses. Lawns are still lush, trees are full of foliage and fruit, and sunny Sunday
afternoons are a great time for a drive.
Many originators frequent open houses to help support their Realtor partners
and, perhaps, meet new clients who — even if they don’t purchase that house
— are at least likely to purchase soon. This year’s tight housing inventories
across the country give open houses a renewed importance. Many Realtors
build excitement for new listings through ads, e-mails and social media for a
time before allowing any showings. This can create a frenzy of offers at the open
house on day one. These events definitely bring out determined buyers who are
perfect potential clients and can help drive a profitable summer for all.
For originators looking to increase their purchase production this year as refi
business declines, this is one strategy to consider. But be prepared to be able
to offer a multitude of loan programs because open houses will bring out a
wide variety of buyers — from those with plentiful funds for downpayments to
first-time buyers who may need more hand-holding and purchase assistance.
This month, we focus on government loans and the government-sponsored
enterprises (GSEs) to provide some details on the products these entities provide.
We start with an in-depth look at the U.S. Department of Veterans Affairs (VA) loan program by Shirley
Mueller of First Choice Loan Services Inc. Mueller helps dispel some of the myths about VA loans starting
on Page 35. Next, if you’ve ever worried about what happens to your Federal Housing Administration (FHA)
borrowers after closing, check out the article on Page 50 by John Vella of Altisource Portfolio Solutions. Also,
this month we spoke with the U.S. Department of Housing and Urban Development’s Bob Mulderig to get
his thoughts on the health of the Federal Housing Administration. Read our Q&A with Mulderig on Page 22.
Looking beyond government programs, we offer several articles this month on loan products and market
opportunities to help expand your business. Originators interested in the return of subprime lending
should read the article by Denis Kelly of Sprout Mortgage on Page 70. Those worried about rising interest
rates should turn to Page 90 for Chris Lund’s article about adjustable rate mortgages. For potential new
markets to explore, check out the articles by Colin Dubel of Charter Capital Group on Page 107 and Tino
Diaz of Columbus Capital Lending on Page 114. Dubel describes how to take the plunge into multifamily
lending, while Diaz discusses the rise of Hispanic homeownership.
Finally, on some lazy Sunday afternoon, after the last buyer has left the open house, take a look at the
articles by Daryl Spector of Close More Loans USA and Curt Tegeler of WebMax. Spector discusses how to
make online marketing work on Page 53, and Tegeler describes the importance of plugging your business
into the digital world on Page 84.
From the Editor
By Will McDermott
Will McDermott is editor of Scotsman Guide Residential Edition.
Reach him at (800) 297-6061 or email@example.com.