Deeper Thoughts
Getting Reacquainted with Issues We Haven’t Had to Deal with Lately. – December 9th, 2020

Issue #53: Getting Reacquainted with Issues We Haven’t Had to Deal with Lately.

For the past two years or so, the headlines have seemed (to me) to be almost the same from day to day:

“Fed Rate Cut Spurs Record Refinancing.”

“Economist Predicts Origination Volume to Reach New Yearly Record.”

“Lenders Struggling at Maximum Production Capacity.”

“GSEs to be Privatized. Or Not. Either Way, Not this Year.”

Ok, maybe not quite the last one. But you get my point. However, over the last couple of weeks I’m seeing some new and different industry headlines. These are familiar issues, but ones we haven’t had on the front burners for a while:

“Purchase Mortgage Defect Risk Rises Again Amid a Hot Housing Market” (National Mortgage News, December 1)

“The Key to Growth in a Post-Refi World.” (MReport, December 1)

“Flagstar Backs Mortgage Fintechs That May Help Address Capacity Issues.” (National Mortgage News, December 1)

We’re seeing and hearing that 2021 will be a good year. Not as good as 2020. Not quite as easy in terms of production and due diligence. But about as good as 2019. Compared to some industries, that’s amazing news. Yes, we’ll have to do a little more marketing. Yes, the process to closing will be a little slower and have a few more wrinkles. But I see an industry that’s up to the task—changing gears and preparing for some of the challenges (Mortgage defect risk? Post re-fi? Addressing capacity issues?) we haven’t had to stare in the face for a couple of years. 

We at LodeStar are looking forward to the challenges and opportunities the new year will likely bring to us at some point. And, like you, we’re prepared to work harder and smarter. I suspect 2021 will be a year of great innovation in the mortgage and real estate industry. We’ve got a few tricks up our sleeves that we’ll be unveiling in the new year. And we’re looking forward to being part of a new wave of innovators helping to make the American Dream a little easier to obtain.

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