Good Times Follow Hard Times

As I reflect on the current mortgage market, it’s hard not to feel optimistic about what lies ahead. We may be less than a year away from a very robust market, and while the last cycle tested all of us, I believe we are on the brink of something remarkable!

For those of us who were in the mortgage or real estate business before the credit crisis of 2007, the stories we carry are etched deeply in our memories. Allow me to share a condensed version of my own journey.

I was with American Home Mortgage, and during our peak, life was nothing short of exhilarating. We had top-notch leadership, innovative products, solid programs, and technology that seemed cutting-edge for the time. Running “the Northwest region”, we were doing an impressive $2 to $2.5 billion a year. Then came that fateful day in July 2007—a day that many of us pre-credit crisis folks won’t soon forget.

When I arrived at work, the atmosphere was charged with uncertainty. News broke that we couldn’t fund loans, despite being one of the top ten lenders in the country and publicly traded. My phone wouldn’t stop ringing—clients were anxious, moving trucks were on standby, and I was in a whirlwind of “what’s happening?” calls. We clung to hope that one of our major warehouse lines from either Countrywide, IndyMac, or Wells Fargo would come through for us. But day after day, the situation remained dire.

Then came the call that turned my world upside down: “Get to Pasadena as quickly as you can. American Home Mortgage will never fund another loan again.” I can still picture walking into IndyMac headquarters, directed to rooms filled with whiteboards, strategizing about who would join them as we planned our next steps into the wee hours of the morning. It was chaotic yet strangely comradely—a true “survivor island” moment. My world “the Northwest” we were able to retain about a billion in production for the next 12 months we were at IndyMac.

Just a year later, as I sat watching CNBC, breaking news flashed across the screen: a run-on IndyMac Bank. It was surreal—familiar territory, shadowed by memories of my own unsettling experience. Shortly thereafter, I learned that IndyMac “Retail Mortgage” was being sold, with Prospect Mortgage acquiring its retail mortgage. I was swept through three sign changes in 8.6 years, yet we emerged stable, preserving half of my most productive offices. We made it through the financial storm, and what I learned has been invaluable.

In sharing my past, my message to all of you is this: Stay strong. The tides are shifting, and your efforts to adapt and thrive will bear fruit. Am I coaching? Yes, and I believe it’s crucial. Now is the time to reconnect with your past clients. Inform them that opportunities are on the horizon. Whether it’s refinancing options, cash-out opportunities, or simply being prepared for favorable market shifts—those conversations need to happen now.

As we look to 2025 through 2027, let’s be ready to pull the trigger when the time comes. Embrace the uncertainty, learn from the lessons of the past, and position yourself to seize the opportunities that are sure to arise. Together, we can weather any storm and emerge stronger on the other side.

Stay resilient—we're in this together!

Ed Vaccaro