|
| |
|
|
 |
 |
 |
| |
Reporter's notebook: Real Estate Lending Conference Focuses on the Economic Outlook
The most pressing issues for community bankers were on the regulatory front, as well as the possible changes in the economy at this year's National Real Estate Lending Conference and Marketplace held at the Westin Kierland Resort in Scottsdale, Ariz. More than 350 mortgage bankers and vendors from across the country convened to discuss key issues affecting the mortgage industry, as well as to take advantage of the 80 degree weather in February.
The sold-old marketplace of more than 30 mortgage-industry vendors added "extreme value" to the conference, according to post-event evaluations.
"I was excited to observe the turn out, interest, and participation of the attendees in this years conference," said Francee Mercadante of PMI Mortgage Insurance Co., based in Walnut Creek, Calif.
On Monday morning, the conference officially commenced with opening remarks from Robert Broeksmit, chairman of ACB's Mortgage Markets & Lending Technology Committee, followed by a Washington update by ACB Chairman F. Weller Meyer. Meyer said bankers need to get more engaged with each other and, more importantly, with their elected representatives and regulators in Washington. In addition to government-sponsored enterprise legislation, it is important for bankers to pay attention to the securities and Exchange Commission registration system and to recognize that it is a cooperative program, Meyer said.
"You and I are owners of the system," he said. "Members of the system have to know what is going on in their banks." In response to the issue of alternative mortgage products, which has garnered the regulators' attention, Meyer said that these products are not "exotic" but have been "offered by community banks for a long time." The new guidelines released by regulators on alternative products could have an impact on bank capital, Meyer warned.
Linda Brakeall, president of Phoenix Seminars, armed attendees at the general session strategies on how to rate-proof their banks' business.
Banks should adopt "holistic banking," which is being concerned with the whole community rather than parts, Brakeall said. Holistic banking can be conducted through community outreach by publicizing the bank's capabilities and turning to community magnetic marketing by writing a column in the local paper or taking part in a local cable access show, for example. Banks can increase their profitability by increasing their community outreach, she said.
Another strategy is being unique; a community bank has to distinguish itself from its competitors, Brakeall said. The only business a bank will get is default business, if it does not set itself apart from banks within its area.
But, above all else, bank profitability starts with the top, Brakeall said. Management must learn to lead and to optimistically sell to staff.
The state of the economy was the focus during Tuesday's general session.
"Growth opportunities still exist in the mortgage market," said Kevin Schneider, president U.S., Genworth Mortgage Insurance Corporation, in Raleigh, N.C. "I do not anticipate a bursting of the (housing) bubble," Schneider said during his presentation, " 2006 ... Seizing the Opportunity for Growth."
Although some experts question the resilience of the mortgage market, Schneider said it remains strong because of the refinance opportunities that still exist, the continued strong purchase market, and the growth in high loan-to-value debt. This, along with booming emerging mortgage markets of minorities and immigrants, should keep the market busy.
"The economy is still sound and will remain sound through 2006," said Martin Regalia, vice president/chief economist for the U.S. Chamber of Commerce, during his general session presentation, "Economic Outlook for 2006." There is no reason why the United States can't experience 10 years of growth," Regalia said. He listed such positives in the economy as the improvement in the investment market, as well as the availability of credit and the historically low interest rates.
To be sure, 2006 is not without risks and uncertainties, Regalia said. The American consumer may become "less exuberant," particularly if oil prices rise. The arrival of the new Federal Reserve Chairman Ben Bernanke also spells uncertainty as the market waits to see how he will lead the Fed. Also, U.S. trade remains low and will need to pick up.
Having knowledge of the mortgage process prior to becoming an effective sales person may not be as necessary as some may think, according to Pat Sherlock whose presentation, "The Seven Keys to Top Loan Production," came during Tuesday's general session. According to Sherlock's research in the area, the top sales people are not necessarily those who are highly educated in the industry. "Just because you know mortgages doesn't make you an effective salesperson," Sherlock said. What makes a good mortgage salesperson is having the right personality traits, such as assertiveness, she said.
|
|
 |
 |
 |
|
|
|
|
|
|
|
