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The Real Estate Show addresses one of the five key contributing barriers to a low home ownership rate, Mortgage Credit Availabilty. Two recent reports, one from the Mortgage Bankers Association, and another from the Urban Institute, show that mortgage credit availability is indications that it is actually more difficult to get a mortgage now than it was before the crisis. We all agree that credit standards still have not normalized following the great recession. We're seeing that borrowers with good, even excellent credit scores, are not getting approved at the rate they were back in 2013, which was before the period of excessively relaxed lending standards.

The problem may, in fact, be worse than what the report numbers reveal. The actual denial rate also exposes an important factor behind the numbers. Mortgage denial rates have decreased slightly in recent years only because lower credit applications are choosing not to even apply for mortgages.

Learn more about Real Estate Investing and learn HOW by listening to The Real Estate Show with Eric Willner , Live every weekday morning at 8 o'clock (EST) on Florida's Money Talk Radio station WSBR AM740. You can also hear us on the free apps: iHeart Radio and TuneIn. Rebroadcasts are available on Facebook.

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Researchers and policymakers have use the mortgage denial rate to measure mortgage credit availability for more than three decades. The Urban Institute, has come up with a new way of measuring the denial rate, and may be a more accurate way of depicting the true credit accessibility, by eliminating borrowers with perfect credit from the denial calculation. Those borrowers will never be denied credit, and make the climate seem better than it is.

After researching 2015 and 2014 mortgages, as disclosed by the mortgage disclosure act data, they found the following very interesting conclusions: First, the traditional way of measuring denial rates significantly underestimates denial rates. Second, gaps in the Nile rate between whites and minorities with less than perfect credit have narrowed since 2017 and remain narrow. Third it remains easier to qualify for a Federal housing administration (FHA) loan then a conventional government sponsored enterprise loan.

So in summary from the urban Institute report, lending to only borrowers with perfect credit prevents too many borrowers who can pay their mortgages, from sharing in the advantages of home ownership. On the other hand, lending to anyone regardless of credit risk creates and unacceptably high level of defaults. The idea put forth, is how to find the right balance.

The mortgage market was judged to have operated under reasonable standards in 2001. Using the standard from that year for comparison, the report showed that the increased reluctance to lend it to borrowers with less than perfect credit killed about 6.3 million mortgages between 2009 into thousand 15. That's too many families missing out on homeownership.

... For more details, listen to The Real Estate Show with Eric Willner , Live every weekday morning at 8 o'clock (EST) on Florida's Money Talk Radio station WSBR AM740.

Also listen to the rebroadcasts on demand on  #TheRealEstateShow, #EricWillner, #ThirdHome, #Best
#WSBR, #AM740, #FM 96.9, FM 103.9, #TheRealEstateLife, #speakingempire, #GKIC, #makeamericagreatagain, #propertymanagement, #rent, #camerondunlap, #bestjobontheplanet, #thirdhome to sell real estate fast for cash to buy great investment property to partner on real estate deals you find
Posted in:General and tagged: THe Real Estate Show
Posted by Eric A. Willner, RFC, LUTCF, CSA on June 19th, 2017 11:25 AM
The Real Estate Show uncovers the six needs that must be met in order to successfully negotiate a win-win deal. All humans have these needs. However, they value them differently. Unlock your opponents needs, and you unlock great deals. Here they are:
1. Certainty. Certainty is a survival need. People who value certainty, value comfort over pain. Certainty is a belief that causes them to gravitate to meet the need of certainty, like a schedule or a map or a well thought out and designed plan. So important is the need of certainty for some people, that they will give up a big dream in order to have daily certainty.
2. Uncertainty and variety. Almost the direct opposite of the first need, some people thrive on change and variety. "Variety is the spice of life", these types of people will tell you. And by setting new goals, changing the scenery, or the landscape or their environment they meet their need for uncertainty and variety.

3. Significance. The need to feel important, or unique, or good, can be a huge motivating factor. Name brand merchandise, well known logos, these are just some of the signs of a person who values significance. People will often overpay for significance and identity. When you identify someone who highly values significance, they may be part of the 20% of the clients who generate 80% of your income.They are not price sensitive. Figure out your ideal customer, then change your offer to address their needs. Find the right formula, change your offer and you will change your life.
Life is the dance between what you want most in what you fear most.

4. Love or Connection is another need of all human beings. It is not the same as significance. Love can be expressed in a million ways. We express love with people a certain way, love for our dogs a certain way, amd so on. The love/connection experience can also be in a positive way, a neutral way, or even a negative way. However, in either way, it is a strong need.

5. Growth. We are always moving up or down there is really no such thing as a plateau in life. It's up or it's down whether we realize it or not. Identify the person we are growth is there highest need, allow them to access growth, and you will be successful in dealing with them.

6. Contribution. The desire to make contribution is also a primal need. Allow that person to feel that they are in someway creating or affecting a contribution, and they will likely cooperate with you and what you need.

These are the six basic human needs that all humans have. Some value more than one, And they value them differently. If you can figure out who your ideal customer is and meet each need appropriately you will have great success. Do not fall in love with your product or service. Fall in love with your ideal client. Then go make some great deals!.

Learn more and learn how by listening to The Real Estate Show with Eric Willner , Live every weekday morning at 8 o'clock on WSBR AM740. Also listen to the rebroadcasts on demand on  #TheRealEstateShow, #EricWillner, 

#WSBR, #AM740, #FM 96.9, FM 103.9, #TheRealEstateLife, #speakingempire, #GKIC, #makeamericagreatagain, #propertymanagement, #rent, #camerondunlap to sell real estate fast for cash to buy great investment property to partner on real estate deals you find 

Posted by Eric A. Willner, RFC, LUTCF, CSA on February 27th, 2017 9:40 AM