January 6th, 2011 11:16 AM by Andrew Walter May
ADR has second best year ever. 2010 was a year of attrition. We had the most bank failures since 1992 and we lost over 80% of all competitive loan officers.
Yes, you read that right. Over 80% of loan officers that compete on rate (like we do) are no longer licensed to do loans. Who is? Of course, a lot of these loan officers went to work for high-cost tarp-money banks. Those same banks need to recapitalize themselves so they are charging A LOT MORE!
In fact, I was talking with a client and he was kicking himself that he paid 1/2% higher in rate then he had to (we're doing another property for him). However, that 1/2% rate difference equates to a 10 year cost to him of $20,000. Go ADR - get a better rate.
2011 should be another challenging year for high-cost banks. Watch yourself out there. It will be expensive and you should work with licensed and qualified loan officers. Not bank loan officers that have no federal or state licensing requirements (yet).