DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1523845
43 July 2024 July 2024 » C O V E R S T O R Y the country are turning 35 every day. First- time buyers account for about one-third of all purchases today, down from a long- term average of 38%. But if/when more affordable inventory comes to market, we may see those numbers increase again, and maybe surpass normal levels. Q: How should mortgage, mortgage servicing, and other related industries best be preparing for the election's impact either way? Pete Carroll: Housing and mortgage policymaking is becoming increasingly politicized, with recent and pending Supreme Court cases weakening federal regulator independence. It is going to be increasingly important for stakeholders across the housing ecosystem to make their voices heard across both sides of the aisle that we need to achieve a more stable equilibrium for regulatory and investor counterparty policies, rather than bearing the costs and distractions associated with the yawing back and forth of housing policies with each political cycle. Jacob Channel: Regardless of who wins, if the economy continues along its present course, the Fed eventually starts cutting interest rates, and the bond market calms down, then we will likely see more activity in the broader mortgage market as mortgage rates fall. I seriously doubt we will see pandemic-era levels of activity again anytime soon (if ever), but the broader mortgage industry will be a bit busier this time next year than it is now, regardless of who wins. Because of that, the broader mortgage industry will likely need to prepare for more activity as we enter into 2025, and this may include more hiring. If Biden wins, the industry may need to deal with more regulations, and some mon- ey-makers, like closing costs and insurance fees, may yield less profit than before. If Trump wins, the industry may experience deregulation. This could drive short-term profits up, but without caution, it may result in risky behavior that ends up causing problems later down the line. Altogether, with the election still a few months off and the race still too close to call, I do not think the broader mortgage industry can do much to prepare for a sec- ond Biden or Trump administration out- side of taking common-sense approaches to ensuring that they are properly staffed and that they understand regulations as they are currently written. I wish I could give a more specific piece of commentary or advice, but given how much is still unknown, I cannot. Larry Goldstone: As a mortgage lender and servicer, we are hoping for less regu- lation and oversight. We will more likely get that with a Trump administration than a Biden administration. Consumers will fare worse under a Trump administration from a regulatory perspective. But, if I were just a selfish mortgage industry executive, I always hope for less regulation. Actually, I hope for more intelligent regulation. A Trump administration will reduce regulation in a bad way. A Biden administration will increase regulation. Neither will find intelligent regulation. Rick Sharga: Regardless of which candidate prevails in November, it is highly likely that the housing market will take a few years to recover. So, purchase loan activity may grow over the next few years, but relatively slowly, and refinance activity even more slowly unless mortgage rates drop more dramatically than most forecasters believe they will. A second Biden administration is likely to deliver more of the same types of policy and oversight that we have seen for the past few years, possibly with more aggressive regulatory action from agencies like the CFPB. And we are likely to see more requirements for lenders to make financing more available to borrowers in underserved and disadvantaged com- munities, and for servicers to continue to develop new loss mitigation strategies to help borrowers avoid foreclosure. Conversely, a second Trump admin- istration could result in less regulatory oversight across the board. But it could also attempt to dramatically limit the government's role in today's mortgage market, and even end the conservatorship of Fannie Mae and Freddie Mac, which would undoubtedly create a fair amount of turmoil in originations, servicing, and the secondary market. "Housing and mortgage policymaking is becoming increasingly politicized, with recent and pending Supreme Court cases weakening federal regulator independence." —Pete Carroll, SVP, Public Policy and Industry Relations, CoreLogic