Wow! That’s a big number. When the auto workers lay off 5,000 people, it’s a national crisis. I guess the Mortgage Workers of America ought to unite and have their union cry foul when they get laid off.
But seriously, this is big (and I don’t think we’ve even seen the tip of the iceberg yet. Yes, I believe this is a knee-jerk over-reaction. Yes, I believe it will get worse before it gets better. Yes, I also believe this will normalize itself over the coming months (maybe a year or two.) But even more important, I believe this will have significant negative impact on the real estate and mortgage industries. Those who were in it for the quick buck will shake out. Those who are in it for the long term will weather this storm, just like they have in the past.
In some ways, it’s like a forest fire. I recall a few years ago when almost all of Yellowstone National Park was burning. Many old-growth trees were lost along with the new growth. But fire releases pine tree seeds from pine cones. That’s the only way you get new trees. Yellowstone looked horrible for awhile, but it looks great now. That’s likely how it will be here. Things will look pretty black and charred for awhile, but before long new grass will sprout and things will green up again. The key is to hang on until it does.
If you would like to read the whole story about the 38,000 unfortunates, click here.
I hope this will end soon, the worst fear is will unemployment be able to provide payments for everyone who has lost their jobs and if so, how long will they be able to sustain it. And will retirement be affected in this.
Mortgage brokers are having to resort to alternative means to supplement their incomes. I know several companies personally that have gone from working out of nice offices with multiple employees, to working from home. I have personally helped several by giving them an edge to increase their sales against their competition, and I was glad I could help. In turn, they’ve turned me on to some great opportunities in this buyer’s market.
Jeff Sokol