I am super excited to announce the launch of our podcast series- Mortgage Vault. In this podcast, we will be interviewing top mortgage industry leaders and get their point of view on where the industry is headed, what are they doing to stay ahead of the curve and what keeps them ticking.
For the first episode, I spoke to Stan Middleman, Founder & CEO of Freedom Mortgage and it was an absolute pleasure. He spoke on a wide array of topics:
- Secret behind Freedom Mortgage’s success
- How did he kept his entire team aligned during Covid
- Volume projections for 2021 and 2022
- Importance of Purpose in motivating people, etc.
It is full of valuable insights. If you skip the rest of this news letter, that is still okay - but don’t miss listening to this podcast. Listen to the podcast on Apple Podcasts
Gloves are off in the fight between UWM and Quicken Loans (Rocket Pro TPO). UWM fired the first shot when they announced that brokers that work with Quicken Loans or Fairway Independent Mortgage can’t work with UWM any more. And it is no empty threat. Brokers need to sign an Addendum committing that they won’t do business with Quicken or Fairway by 15th March, that is today. UWM claims that 90% of brokers (I guess by production volume) signed the Addendum.
Is this a good move from UWM? Only time will tell. In general, limiting the choice of your customers is not a good long term move. But UWM’s point is that, Quicken is anyway biased against brokers and UWM is only protecting them. There is going to be lot more action here. Watch this space.
Biden administration passed the $1.9 trillion dollar American Rescue Plan. It is unfortunate that it passed by a partisan vote. Without getting into the politics of it, let us understand what it means for housing. For the housing industry, Biden’s American Rescue Plan provides a big boost at a time when home prices are sky-high, inventory is low, and millions are struggling to make rent and mortgage payments. The bill allocates $22 billion for emergency rental assistance, replenishing the Coronavirus Relief Fund. $10 billion will go toward helping homeowners struggling with mortgage payments, $5 billions for expanding shelters and another $5 billion for providing emergency housing vouchers. This takes some pressure off servicers who are bracing for a spike in foreclosures.
By the way, have you gotten your Covid shot yet? My mom did and I am waiting for my turn. I would urge all of you to get the shot if you can. Yes, there is that odd chance of a side effect, but the probability of a severe side effects seems to be much less than the probability of contracting Covid. So it is an easy choice. Indeed vaccination is happening at a breakneck speed. As of yesterday, more than 100 million people in the US received at least one vaccine shot. Great job and the credit goes both to the previous administration (for getting the supply ready) and to the current administration (for the distribution).
Have a great week ahead.