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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 42 December 2024 F E A T U R E S T O R Y coming online. Assuming household formation/demand stays the same, this will cause rents to rise again. In order to sustainably correct the affordability crisis, you need to increase the supply of either capital, labor, mate- rials, or land. There are various public solutions that could increase the supply of land and labor and typically innovation and various other dynamics impact mate- rials. But the primary driver is capital. To address capital, you have to either make financing more available or more flexible. This is what Nectar does in a creative way that works in both up and down markets. I would note that the government also subsidizes housing at every level and price point and will have a role to play in dealing with the crisis. Q: What suggestions do you have for renters who are on the outside of the home buying market looking in? For renters looking to eventually buy, I would suggest a few things: • Focus on building savings and improving credit scores. Even small improvements in credit can make a significant difference in mortgage terms. • Investigate first-time homebuyer programs and alternative financing options. There are many programs available that offer down payment assistance or more flexible qualifica- tion criteria. • Consider buying in emerging neigh- borhoods or slightly further out suburbs where prices may be more affordable. • Be patient and prepared. The market goes through cycles, so there may be better buying opportunities in the future. Use this time to get financially ready. • Do not feel pressured to buy if the deal does not make financial sense. Sometimes renting is the better option, especially if it allows you to save and invest for the future. Q: What course do you feel that rates will take as we prepare to enter 2025? I don't anticipate rate cuts. Rates will stay around here unless economic conditions deteriorate. Q: Do you see a shift in housing policies based on the outcome of the Presidential Election? Regardless of the election outcome, I expect housing affordability to be a key issue for a long time to come as neither party had a plan that addressed the scale of our current problem. The Republicans mentioned a focus on reducing regulations to spur private sector development and expanding op- portunities for homeownership through tax incentives or reforms to lending practices. It is important to note that the fed- eral government already does much of what each candidate had proposed, and while expanding on existing programs will certainly help, current proposals are unlikely to close the housing supply/ demand mismatch in full. Many of the most impactful housing policies are implemented at state and local levels. Zoning laws, building regulations, and local incentives for housing develop- ment will continue to play a crucial role in addressing housing challenges across the country. Q: What tools do you feel a mortgage professional needs to survive and thrive in today's marketplace? To thrive in today's mortgage finance marketplace, professionals need: • Strong technology platforms for effi- cient underwriting, loan processing, and portfolio management. • Data analytics capabilities to make informed lending decisions and identify market opportunities. • Flexible capital sources to offer com- petitive products in different market conditions. • Deep understanding of regulatory requirements and compliance best practices. • Strong relationships with real estate operators, brokers, and other indus- try players. • Ability to structure creative financ- ing solutions from multiple capital sources tailored to borrowers' needs. • Continued education to stay current on market trends, new financing tools, and evolving regulations. Q: What advice would you give to anyone looking to break into the mortgage finance industry today? For those looking to break into mort- gage finance today, I would offer this advice … start by determining a niche where you can provide value to bor- rowers that the market is not currently providing. Fortunately, the market is vast and there are many inefficiencies. I would start by finding out how you can source or structure deals better than current incumbents. Embrace technology, especially ar- tificial intelligence (AI), as the industry evolves rapidly. Being able to use it to streamline your workflow, strengthen your underwriting and save time, yours, and your staff 's, is golden. If you are not familiar with it, take a class to bring yourself up to speed and hire an expert to help you implement it.