Bill Cosgrove Mortgage Bankers Association Chairman 2015

Hi everybody Dave Sullivan here for the MMLA Membership Committee with… Bill Cosgrove CEO Union Home Mortgage
Company and chairman-elect to the Mortgage
Bankers Association Great, Bill how long have you been in the industry? 28
years as of June 1st Wow yes that is a long time, yeah.. What
has changed the most over that time? when you first got in the industry what
was that process like for people who were
applying for a mortgage? well it was a you know we all know if we were
in the business in the mid-eighties it was much simpler time I think it was a it was an easier time
to be able to to do good business and take care of
customers who want to buy homes or refinance homes more maybe a little more relaxed more
than intimate process.. sure, unlike today more challenging I think that the the
banker really knew the individual and probably had some sort of personal relationship with back then I still think that happens but
but not maybe to the extent that it was able to happen 25-30 years
ago yeah so today we have very good
rates we’ve got plenty of inventory
or a little more inventory than before what do you think is holding back the
the first time home buyer or the move-up buyer right now? Well I think the first
time home buyer is challenged by a couple things the first thing is job right right it seems is the
economy is is picking up jobs but it’s a part
time jobs for full time jobs and no one is going to buy a home on Part
time work… right so we can make sure that as the
economy recovers it is full-time work. I think there’s that there’s some wage pressure on the
younger people today the median wages what it was
twenty years ago and then I think the other thing is
student debt the cost of higher education is skyrocketing as a country we need
to figure that out all those things along with Q M other tightened credit box
is putting pressure on first-time home ownership we’ve gotta
figure that out yeah I think that you know you said student loan debt I mean is over
a trillion dollars now right whee look at a credit report I mean
a student loan debt is usually five to ten accounts for one degree I
think that people really don’t know how to handle it recover from it so
it’s really tripping them up on the first up on their credit report as soon as they
graduate from college. well yeah and it’s when young people are most vulnerable
and it seems as though the the loans are being taken out with
without the thought with out the thought that they’re gonna have to be repaid right
and so at the ended the day, I think that that
you really is an industry in this country The middle class shouldn’t
after to break itself to educate their children right and
that is affecting home ownership and we as a country need to get that figured out yeah I agree so in
the future if you’re to give some advice for somebody six
months from now was going to apply for a mortgage what would you tell them what we how would you coach them to
prepare for that process which is much more difficult now than it’s ever really been yeah it is, well I think they need
to be number one conservative and in what they want purchase right so
so the key. today’s successful home ownership not just home ownership but we need to have
successful home ownership and that is to make sure the qualifying ratios are right I
think that the young person buying their
first house needs to prepare and in understand that
that’s going to be more than rent you got some other costs associated with it I but at the end of the day what the really need
understand is long-term home ownership is fantastic
a I think the average homeowner America the middle class has and a net worth
over a hundred thousand dollars and a renter has a net worth about $12,000 so home
ownership is good but it is successful home ownership that matters right and that is not biting off more than you can chew from
a mortgage perspective well I do appreciate your
being up here and being the chairman of the MBA we
look forward to seeing you out in Vegas right? yeah October 19th
and 22nd you will be inducted there, I’ll be inducted that Sunday afternoon so that is
exciting and we appreciate all the work you are doing here in Michigan and
the partnership between the Michigan Mortgage Lenders
Association in the MBA right it really is a good
partnership thank you Sir

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