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We’re off and running. The 2016 presidential race is officially underway with the completion of the Iowa Caucus.
What is a “Caucus” anyway? It’s a meeting of supporters or members of a particular political party or movement. So, what we had was a meeting of supporters of the movement to elect a new president who put forth their opinions on who they think might be president.
Interesting timing. Same time as the NFL’s Pro Bowl, with some similarities between the two. Both got an awful lot of hype and coverage but neither really is a true predictor of what might happen in the future. The Pro Bowl no more projects who might be in the playoffs or the Super Bowl next year as the Iowa Caucus projects who will be our next president or even the candidates from each party.
It’s a fun exercise for the prognosticators and pundits. Everyone has an opinion, and you know what they say about opinions. We’ll leave it at that…
At the end of the day, none of the candidates have made any real comments, suggestions or proposals involving housing. Some have mentioned a roll back or curtailment of burdensome regulations, but no real substance about what might be done.
Why? Is it not all that important in the general scheme of things, or is it something that no one wants to debate because it is a difficult problem to solve?
According to most reports, the housing market is improving. However, the homeownership rate is still lagging. It hasn’t quite recovered to the pre-2008 levels.
Is this because maybe the economy ain’t doing so great and although the lending industry had rolled out several plans and adjustments to help increase homeownership, people believe they still cannot afford to move up, or buy their first home. Wages aren’t growing and employment opportunities are at the lower end of the income scale. Is the economy really doing so great?
It appears we’re on our own. Maybe that’s not so bad. In the past when the government intervened, it created more problems (and costs) than it was worth. One thing however that might help is another cut in the FHA premium rate; the initial or annual. Either cut might help spur homeownership.
Could be a boon for one candidate, especially one that could select the existing FHA Commissioner as her running mate (and I’m not talking about Carly Fiorina).
For me, I hope not, as my political position rests with the opposing party. Hopefully, one of these guys will do something positive for housing. We’ll watch to see to how it all plays out.
There is still an opportunity for mortgage lending out there. Let’s not sit around and wait for somebody else to do something.
There are quality buyers, looking for quality homes that need quality financing. Be the one that steps up and provides that financing.
As margins are thin, take a look at originations and operations for areas that may be streamlined and automated to reduce costs. Carefully examine functions that may be outsourced and explore technology solutions that can make employees more productive.
Find the pain points, and the areas where additional resources are now required and look for ways to relieve the pain and reduce the staff. Technology, automation and outsourcing could be the answers.
Then, if somebody does decide to something to bolster housing, you’ll be in a much better position to take advantage of the surge.
