The final quarter of 2009 puts us right at the bottom of a 2 year financial meltdown. The financial crisis started with the default increase on sub prime lending but has spread into every aspect of not only the financial markets but also the global economy. The massive financial crisis has most recently even been credit with handing the Whitehouse to the first President of color.
Many people are not aware just how many families in the mortgage industry have been affected by the massive waves of bankruptcies and company layoffs in the financial sector. Experts feel that 60% of the mortgage originators from the heights of 2001-2004 are no longer in the business. As with all challenges this presents an opportunity for those with the integrity, ingenuity, and fortitude to withstand the chaos.
Five Stars Mortgage is a Florida mortgage company with that aforementioned quality. One of the single most important attributes in times of tribulation is a positive attitude. The employees at Five Stars Mortgage recognize that a positive outlook that puts and emphasis on solutions instead of excuses, innovation instead of fear, and a non wavering faith in the benefits of integrity over greed are what will propel them through this historic down cycle straight through to prosperity and expansion when the markets return.
While a positive attitude is an important ingredient to surviving a down cycle, more tangible moves are also required. Streamlining the overhead and process of the company is a must. Decreasing business expenses and highly targeted advertising budgets will extend the company’s ability to weather a market storm. Innovative online marketing and other low cost methods of reaching out to a greater number of potential clients must be done religiously.
Providing useful information to other industry partners such as realtors, appraisers, title companies, or even other mortgage lenders or mortgage brokers will foster lasting relationships that will strengthen both partners further. Updating realtors and program guideline changes, providing marketing flyers to promote niche products, and informing realtors and their clients on the movements of the interest rates will provide valuable information for them to help increase their business. We have carved out a section of our web site specifically to highlight our realtor partners and allow them to further increase their exposure as an added benefit to our partnership. https://www.fivestarsmortgage.com
The final important virtue in lasting through a market downturn is flexibility. Programs will go away. Guidelines will be revised. Lenders will cut off their broker channels. Property values will decline. Each day will bring a new challenge to your business. You must reject the fear to resist the changes or run from them. Embrace the challenges and confer with your most trusted and educated allies and together form creative innovative solutions that will lead to a prosperous outcome despite the new challenge. Try to make jokes and stay light hearted to your industry partners, employees, and other business relationships. Together you all stand a better chance of survival of the financial storms. Try to enjoy life and your job which is a must through a challenging time such as these. Remember why you got into this line of work in the first place. You in some way are helping people achieve the American dream. Never loose sight of that fact.
To recap some important virtues for a company affected by the economic downturn are:
- Maintain a positive attitude through adversity
- Cut all but the most vital business expenses to a minimum, then cut further
- embrace the internet with regard to marketing and communications with your clients and partners
- forge strong business relationships by providing value to your partners aimed at increasing THEIR business
- laugh and love your job
- Remain flexible. In a tornado force wind it is the flexible reed that will survive, not the stiff old oak tree.
- Lead the way in your industry with innovative concepts such as going green
We at Five Stars Mortgage look to forge new relationships that last through the good times and the bad. Let