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Like those TV drama series, the mortgage market is poised for its winter season finale. We are faced with all kinds of suspense coming from what might happen in 2018.
Based on current headlines, we see:
- An increase in home buyer and seller sentiment
- A forecast for rising interest rates
- A shortage of housing
- Increasing home equity
- Increased FHFA and FHA loan limits
- Continued increase in home values/prices
- And more…
So how will all this play out in 2018?
- What effects will the passage of any tax reform have?
- Will buyers and sellers remain so positive if rates rise?
- Will wage and income growth match home price increases?
- Are there enough homes to go around?
- What are the effects of any new construction?
- Will the hero and heroine live or die?
- Stay tuned…
Coupled with all this, lenders will also face challenges from the required programming and compliance with the new HMDA requirements and TRID 2.0 changes/clarifications. What might be next?
Water cooler chatter and predictions vary. One thing most agree on is that 2018 will be a purchase mortgage market and business will be down from prior years. How do you plan to weather the storm?
Are you ready for HMDA? It’s not a matter of just collecting and reporting some new data, the information you report must be complete and accurate. After all, this is the information that will be used by the CFPB to evaluate your lending patterns. How will your production be judged?
If things fall right, and they may, there will be plenty of buyers and sellers in 2018. Rising rates and tax reform may slow some sales. But, slower sales could also stabilize home prices. This would bring more players into the market providing opportunities for more business.
Lenders need to be ready with a new script to produce more business with less expense? Incorporate technology needed to reach more potential home buyers, sooner, with capabilities to originate, approve and close loans more quickly and efficiently.
Get ready for a fast paced, action packed new mortgage season with some twists, turns and challenges we haven’t seen for a while.
It’s shaping up to be an exciting new mortgage market. Will you play a starring role, a bit part, or be killed off in the new season?
