Does the "meltdown" affect net branching?
As a nation and as an industry we are in uncharted waters. I doubt anyone can accurately predict the outcome. What we can do is make some estimates on how the mortgage meltdown will change our industry in the short term - The next 18 - 36 months. Purchase - Purchase - Purchase - FHA - FHA - FHA - Reverse - Reverse - Reverse.
You need to be aligned with a company that is is in a good position to originate FHA loans and Reverse mortgages in your market and you can for the most part eliminate refinance out of your business model.
Refinance will not disappear completely but I believe you will see the numbers continue to drop.
With home values dropping home equity is going with it. Even the best markets have lost 20% - 25% equity. This greatly reduces the refinance market. With the problems Fannie and Freddie are facing FHA is going to be the primary source of mortgage funds in the short term.
If you are not with a company that is in good standing with FHA you should consider making a move.
If you find this information helpful please let me know. I always welcome suggestions, comments and new subscribers.
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