The Housing Crisis Ten Years Later. Where Are We Headed Next?
As we enter the tenth anniversary of the housing crisis, it is important to remind ourselves how far we have really come. Times were hard, and I doubt anyone reading this needs a history lesson on those tumultuous times. Every facet of our industry was left with their scars.
But we survived. We adapted.
As the tide again shifts, where do we find ourselves, and where are we headed next?
A recent article from HousingWire titled, The jury is in: This cycle ends in 2020 states, “In the housing industry, there are already well-entrenched factors keeping people from seeking out financing for homes new and old, and mortgage lenders are feeling the burn”. These “well-entrenched factors” refer to rising interest rates, low inventory with fewer permits being issued, and a study from Trulia that states that owning a home is less profitable than it has been in nearly a decade.
HousingWire offers several solutions and words of wisdom for those not willing to wait for another downturn in another article about the hardships buyers face, saying “…homebuyers need some good news – a drop in interest rates, relief from climbing home prices or a significant wage increase, maybe all three – in order to turn the tide on these homebuying blues”.
My takeaway from this is that there is a growing opportunity for Non-QM lenders. Wage stagnation has been a hot button issue for years – and I think this is a big factor in the Non-QM explosion we are seeing.
On a macro-scale, the site advises lenders to acquire everything they can –
“As we move forward into thinner years, it is important that mortgage players find ways to recession proof themselves. Some are already fattening up for winter by assuming smaller entities, evident in the recent uptick in mergers and acquisitions activity in the space. However they choose to prepare, they need to do it in a hurry”.
There is also a third solution: Lenders should look to their vendors to reduce cost and increase efficiency. At Class Appraisal, we have seen many of our clients do exactly that. As banks and brick-and-mortar operations look for ways to remain competitive, many have opted to reinvent themselves – allocating their resources to be more client-facing while delegating things like appraisals to AMCs and other vendors. We’ve taken this one step further with lender tools like our Internally Managed Appraisal Cost Estimator.
This estimator breaks down total annual expenses, fixed costs, and overhead in an easily digestible format – even down to an average cost per appraisal. We built this tool to help lenders understand the real cost associated with managing appraisal panels internally. Our clients receive the best turn times, best care, and best team to manage each order so that they can focus on their business and get more loans closed quicker. The savings speak for themselves.
A storm is brewing, but we have weathered storms before. The past ten years have taught us a lot about being proactive. At Class Appraisal, we’re future-proofing our services, too. We’re here to help our lender partners succeed. To find out more about the changes coming, be sure to visit our website regularly for news pertaining to appraisers and lenders, or reach out to our responsive and knowledgeable team at 866-333-8311.
About the Author
Josh Buck is an Account Executive at Class Appraisal. He holds a BA in Communications and English and is a Real Estate Appraiser in training. For inquiries, he can be reached at 248-385-0204 or by email at firstname.lastname@example.org.