CFPB Who? They’re back….
Why is this important for us industry folks to know? Because their repercussion are known to be grave. For example, Wells Fargo, the #1 mortgage originator has officially stepped back from the housing market. This was just announced January 11th, 2023. Article cited below. In my opinion, this is Wells Fargo’s reaction to the CFPB’s $3.7 billion fine for Widespread Mismanagement of Auto Loans, Mortgages, and Deposit Accounts.
Key takeaways:
- Instead of its previous goal of reaching as many Americans as possible, the company will now focus on home loans for existing bank and wealth management customers and borrowers in minority communities, CNBC has learned.
- As part of its retrenchment, Wells Fargo is also shuttering its correspondent business that buys loans made by third-party lenders and “significantly” shrinking its mortgage-servicing portfolio through asset sales.
- Altogether, the shift will result in a fresh round of layoffs for the bank’s mortgage operations, executives acknowledged, but they declined to quantify exactly how many jobs will be lost.
Piatt’s 2 cents; LOCAL LENDERS are worth their weight in GOLD!
2023 outlook is bright…. It all boils down to Affordability.
- Inventory is still low, yet increasing
- Prices are holding steady
- Sellers are more giving
- Buyers have more options
- So what is the HOLD up?
Consumers are scared? I’d ask your clients this; you weren’t scared to buy $10K, $20, $100k over asking? Why be scared now? As a buyer, we have more options than ever and yet, I say again, what is the HOLD UP?
AFFORDABLITY …. How can you make buying or selling AFFORDABLE to your clients? BOTH buyers and sellers.
Your clients are being told that high interests = unaffordable housing in today’s market. OR high rates = less buyers. That is all just NOISE. There is always a reason to buy and sell real estate:
Death, Divorce, Duplication and Destination. Find the Need; Create the Offer, Close the Deal.
In this market, consider these few options (and yes, there are MANY more to consider) to making buying/seller a good investment for all.
- Find the NEED:
- Do they have to move? Upsizing, downsizing, life event, etc.
- Creative financing
- Consider an unconventional offer; consider writing once.
- Seller credits:
- Can be a gift from heaving with consider monthly affordability.
- Prioritize connecting with other agents
- We can do more together and do it BETTER TOGETHER
- Keep it LOCAL
For more information – https://www.cnbc.com/2023/01/10/wells-fargo-once-the-no-1-player-in-mortgages-is-stepping-back-from-the-housing-market.html
