Mortgage brokers are tired of the dialogue around elevated interest rates. "It is what it is," some say, emphasizing that other factors – such as changes in policy at the Federal Housing Administration — are having a more notable impact on their business and the consumers they serve.
At UWM's Live! event last week, more than a dozen mortgage brokers said their greatest concerns centered around a lack of housing inventory nationwide, rising property taxes and changing policies at the federal level.
The ebb and flow of interest rates is subjective, they said. Some originators who have worked in the industry for decades recall double-digit rates and believe there is still plenty of opportunity to originate loans.
"We brokers cry a lot, we complain a lot — 'Rates are bad, people aren't buying homes,' etc. — but there are such big missed opportunities when we're just crying over things that aren't ideal situations," said Ashlin Endter, a Miami-based mortgage broker. "And the thing is, what is a high rate? That's such a subjective thing."
"It's always a good time to buy," echoed Florida-based mortgage broker Paulo De Silva, who has been in the industry for two decades.
How FHA changes have impacted business
The political landscape and its potential impact are top of mind for most brokers interviewed.
"There's a lack of stability in the real estate market economy right now, " said Vadim Shlangman, loan officer at Innovative Mortgage Solutions,
Some changes made by Trump's administration, specifically the Federal Housing Administration, had brokers abuzz.
Updates, which among other things rescinded the ability for non-residents to qualify for an
"The FHA changes that are going into effect now mean we have to pivot to other options," said Tammar Hernandez, a Nevada-based mortgage broker. "Now you can say, 'Hey, I still have a solution for you, but it's just going to cost a little more.' There are still solutions out there; we just really have to find a way to target them."
"Things are changing daily," added Hernandez. "We need to constantly be on the lookout and see how these things will affect our business."
Endter also noted changes to the FHA eligibility requirements "put a dent" in some of her deals. "You can still go conventional or non-QM and I think we'll see a big shift to it, ITIN loans specifically," she added.
Virginia-based broker Kelvin Oliver pointed out that some of his clients who were ready to buy a property have opted not to because they lost government employment."Some of my clients decided not to move forward with buying homes in the Virginia and Maryland area because of their political leanings," he added, resulting in loss of some business opportunities.
Low housing inventory and high property taxes
Brokers at the UWM event spoke of a lack of available homes in their local markets as a key factor stalling business.
Dante Rosa, a Michigan-based broker, says homeowners have started to overcome the mental block of holding on to their 3% mortgages and want to move, but options are limited.
"I have received dozens of inquiries from clients looking to move and even let go of their super low rate, but there is very limited inventory," he said.
Oliver also highlighted
Property taxes nationwide have grown by an average of
Sbonek says he is actively having conversations with clients regarding how property tax hikes may impact his clients financial wherewithal.
"Property taxes are a big issue, so I am constantly preparing borrowers that they may see a spike," he said. "I don't want someone to call us next year and say that I didn't warn them."
Some of Sbonek's clients have opted to narrow their budget for buying a home solely based on worries that their yearly taxes will be high, pushing finances into the zone of unaffordability.
