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Is Mortgage Industry in Trouble
Many Mortgage companies are hurting. Mortgage rates are at 26 year highs, the Feds keep on increasing rates, inflation is out of control, home prices are increasing despite high rates and a weak unstable economy. Over half the licensed loan originators are expected not to renew their NMLS mortgage licenses for 2024. We will keep this thread going
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11 Replies
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Good point
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I think we will see a lot of people exit the industry just like after 2008
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30% of loan officers and mortgage companies did not renew their 2023 NMLS mortgage licenses.
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I agree. The rates have finally worked their way through the system leaving qualified buyers on the sidelines waiting for lower prices and lower rates. Unfortunately for that to happen we need higher unemployment to trigger these events. It will be a hard time for many families, Including mine.
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Alex, Eric, this is getting scary where the hearsay so-called conspiracy theory the Globalists and Democrats were trying to end the world. I never paid attention to liberals and globalists eating humans, people like Nancy Pelosi, Joe Biden, Hilary Clinton, and other elites killing babies so they can take adrenochrome which is when you kill a baby, and if the baby is fearful, the chemicals in their blood have a powerful effect on adrenochrome which is the fountain of youth. I never really paid attention to the Rothschilds, George Soros, Biden, Obama, and the biggest and most rotten Bill Gates, trying to depopulate humans on Earth for population control. Never paid attention to the globalists, Dr. Anthony Fauci, Bill Gates, Barack Obama, Michael Robinson Obama, Hilary Clinton, the Rothchilds, George Soros, and Kamala Harris being part of creating Coronavirus so a vaccine can be created to kill people, thereby depopulating the world. I now believe the coronavirus vaccine was created and promoted to kill people and use it to depopulate the world. My best friend Tony, a dentist I have known since I was eight years old, was in excellent health, worked out regularly, did not smoke or drink, and was without a history of any health issues. No diabetes, no high blood pressure, no high cholesterol, and in phenomenal shape. Due to being a dentist in Illinois, he had to take the coronavirus vaccine. After he took the vaccine, several months later, he died in his sleep He died of a blood clot in his brain. I know a dozen others who died after taking the coronavirus vaccine for no reason. They were all under 40 years old and in good health with no history of any medical illness. With all the crazy shit with the economy, inflation, skyrocketing rates, and out-of-control home prices, it is beginning to seem like the government is trying to destroy America. You can tell that inflation is not 10%. It is more like 200% percent and higher. Food prices and other costs are skyrocketing, and wags are not going up. Making six figures used to mean something. Right now, a six figure income is nothing.
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From what I am hearing, half the loan officers are not going to renew their 2024 NMLS licenses. What this means is once the market turns around, the loan officers who stuck it through will hit a jackpot.
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If the economy does not change fast, many people cannot afford groceries. Everything is double or triple the price. The 10% inflation rate is nothing but BS. We need to get politicians in Office who have half a brain and know the economy. Unfortunately, it is a very scary time to play politics when lives are at stake. I feel bad for the new generation. New generation kids graduate college and walk into a majorly screwed up economy and not being able to afford a home. This is so not cool.
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Mortgage rates are up again today. When will this nonsense stop. Conventional loan rates will be surpassing 8% and GOVERNMENT LOANS rates are over 7%. Yet, homes are in demand and there are inventory shortage.
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I believe if it continues, children will stay home with parents longer. And multi generational living will increase just to get by.
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The economy in which we exist at present is filled with a lot of complications, especially now that mortgage rates have hit numerous-year highs. Furthermore, the situation is made worse by the economic burden thinking of inflation and home price increases. A specific aspect of the mortgage industry that you pointed out is the market’s instability, which causes many licensed loan originators to change their positions; according to reports, a significant majority are ineligible for renewing their NMLS licenses for 2024. The continuous increase in rates by the Fed, combined with the timidity of the economy, has revealed many problems for mortgage lending, reducing its margins and slowing its volumes considerably.
In such an environment, the following may occur:
Consolidation in the Industry—We anticipate M&A activity as weaker or smaller players are pushed into the hands of bigger players with available resources.
Increase Non-QM and Alternative Lending: Because these QMs have been seized because of work, firms might increase their reliance on DSCR, non-QMs, and alt-lending products to benefit from leftover market needs.
Gains from Technology and Efficiency: Firms driven by technology and shifting towards sourcing significantly less are likely to perform well in this recession.
As you mentioned, adding to this thread is sensible since it is business as usual for the mortgage industry. It would be helpful for loan origination to remain actively involved with the changes and the discussions around them. This would enhance their ability to operate in what is expected to be a tough working environment. I’m more than willing to keep you informed since you have mentioned an interest in strategies or trends as they arise.