US mortgage professionals find themselves with a new dilemma as current low mortgage rates boost demand.
Anthony Hsieh, CEO of lending marketplace loanDepot, says that the biggest refinance rally in history has the potential for US$4-5 trillion of demand this year, which may outpace the production capacity of the home lending industry.
He added that the current rates will be the talking point at dinner tables across the nation.
“These conversations will drive refinance volume to all lenders, even without large advertising spend and campaigns, said Hsieh. “Given this, lenders who cannot scale, and those that do not have the wisdom to responsibly approach this market, will be over capacity within the next 60-90 days."
Consumers get ready
For the roughly 80% of consumers who are ‘in the money’ and able to take advantage of refinance offers in the market, the loanDepot chief is encouraging preparedness, with all the documentation ready and clear goals in mind. Then of course, to speak with a knowledgeable, licensed loan officer.
"And, above all consumers should be prepared to be patient as they take advantage of this fantastic, wild ride," he concluded.
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