Mortgage Industry Trends

Political Divide Hits Consumer Confidence

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political-divide-hurts-comsumer-confidence-Democrat-Rebuplican-Donkey-elephantYou can’t pick up a newspaper, listen to a talk show, news broadcast, read a tweet or online post today without some comment on the political divide. Everything has become a zero-sum game; there’s no room for compromise. It’s right or wrong, black or white, fair or unfair. In the eyes of the public and our legislators, it’s “win or lose.” Sad…

I always heard the politics is the art of compromise. So, where’s all that compromise now?

When the parents fight, the kids get nervous. A recent study released by the University of Michigan’s Surveys of Consumers, reveals that consumer sentiment declined in January to 95.7, down from 98.5 the prior month. That’s not good. However, when analyzed closely it turns out that confidence amount Republicans came in nearly 40 points higher than that of Democrats. That’s a serious difference.

Although not asked directly, almost 60% of those who responded made some spontaneous mention of President Trump’s new economic policies;

  • 30% responded favorably; while
  • 29% commented unfavorably.

Split almost right down the middle. Now that’s what I call a “divide”!

According to Richard Curtin, the Survey’s Chief Economist, this amount of simultaneous political reference is unheard of in past surveys. Curtin says the differences are troubling.

The Democrat’s response would indicate a potential for a recession, while Republican’s outlook leans more toward expansion. Much depends on the new administration’s economic policies and their effects on the economy.

More depends on how our legislators work together to arrive at some compromise to implement the new economic policies.

It’s time for our elected officials, at every level, to come together, put aside their personal differences, and work together to do what is right for the people who elected them.  Arguing, posturing, name-calling, yelling, screaming, that ain’t gonna get it done.

It’s time for those we elected, on both sides of the aisle, to get down to the business at hand. Do what’s best for America and its people. In the words of President Lincoln, “A house divided against itself cannot stand…”

Let’s hope that we can bridge this divide for the good of us all. Let’s also ask our elected officials to do the same.

Michael Vitali

About the Author

Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.
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Michael Vitali

About Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.
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