Franklin Financial Group Blog

As we continue to trudge through these tumultuous times it is easy to question the future of the mortgage industry here in the United States. I believe it is going to again be strong and thriving, just maybe a little ways down the road. In order to properly look ahead, one needs to be reminded of the past and what was learned from past troubled times. In the times we are in, you can turn almost anywhere and see or hear panic and negativity. Some of it is warranted and yet some of it is propaganda. Emotion realistically drives much of the economic community and the media always reports bad news over good. I have had many discussions about what has been phrased as the "Mortgage Meltdown", "Credit Crisis" and "Subprime Mess" to name a few terms. During these discussions some people have made comments that insinuate that we are possibly at a point that may never be remedied. It is when I hear comments such as these that I am reminded of the Great Depression of the 1930s, the Savings & Loan Crisis of the mid 1980s and the Downturn in Home Sales of the mid 1990s. When you consider the past you are then able to say we have been in bad times before and were able to rise above them. The key is that just like anything in life that we go through that is bad or tough, you have to take some valuable lessons learned and apply them for future endeavors. I am sure one of the most valuable lessons learned from the present state of affairs is that no matter how attractive the rate of return might "possibly" be, there needs to be a threshold to how much risk we are willing to accept for that return.

You will often hear Mortgage and Real Estate Professionals describe their industries as cyclical or like the movement of a pendulum. They are absolutely correct. What goes up, must come down, and viceversa. We are nearing, if not already at the bottom of this cycle. We need to poise ourselves for that pendulum to begin swinging back up and use prudence during the next climb!