Are you prepared for the latest shifts in the mortgage industry that could redefine your strategies for success?
In the fourth episode of the Optimal Insights podcast, Jim Glennon and Jeff McCarty are joined by Kevin Foley, CFA and Alexander Hebner to discuss the latest trends, key insights, and actionable ideas you should be thinking about this week.
Here’s what you need to know this week.
Key Insights and Trends
Market Updates
➕ Interest Rates: The Optimal Blue Mortgage Market Index (OBMMI) has shown a slight uptick, currently sitting at 6.45% for 30-year conventional loans.
➕ Impact on Refinancing: Rate term refinances are down about 50% month over month, a significant drop that reflects the broader trends in interest rate stability and market response.
Election 2024 & Housing
➕ Election Impact on Housing Policy: With the upcoming election, both candidates' housing policies were discussed in detail. Alex Hebner highlighted that the Republicans are focusing on opening land for home building, while the Democrats are looking to incentivize home building through tax credits.
➕ Housing Supply Concerns: The ongoing housing shortage remains a critical issue.
"Since the great financial crisis, we've had a housing shortage in this country, and resolving that would completely change the landscape of the mortgage industry." – Alex Hebner
Federal Policy Impact on Finding Product/Pricing Fit
➕ FHFA and Its Role: FHFA sets policies to both encourage homeownership of underserved borrowers and maximize profits for Fannie Mae and Freddie Mac.
➕ Impact on Product and Pricing Adjustments: Increased options, such as Community Reinvestment Act (CRA), Low Income Purchase (LIP), Very Low Income Purchase (VLIP) requirements, HomeReady and HomePossible offerings, and Mission Score.
Practical Actions You Can Take Today
➕ Technology: It’s important to use technology that can support a wide variety of product offerings.
➕ Focus on Education: Continuous education for both staff and borrowers is crucial – an informed team and clientele can navigate the minutiae of product & pricing more effectively.
➕ Internal Procedures: Verifying income upfront, along with identifying properties in underserved areas will help lenders be able to maximize the competitiveness of their offer for borrowers more effectively.
For more information about these topics, listen to the full podcast episode on major platforms or watch the full episode on LinkedIn/YouTube.
Listen on all major podcast platforms: https://optimal-insights.captivate.fm/listen
The views and opinions expressed in this program are those of the speakers and do not necessarily reflect the views or positions of Optimal Blue, LLC.