The Year in Review
The mortgage industry saw some radical changes during the year 2015. While some changes are still top of mind and dominating our daily business, others created a significant impact that we have grown accustomed to. Let’s take a look back over 2015 and what the industry endured.
We began the year with the FHA cutting annual mortgage insurance premiums by 50 basis points. These reduced fees were anticipated to bring more buyers to the FHA market as well as save borrowers money each year on their mortgage insurance thereby making a loan more accessible.
Possibly the biggest industry change this year was TRID. From the announcement of the new rule to the changes in implementation date to launching the new rules with an informal grace period, TRID forced a major change industry-wide. New disclosures and regulations made lenders revamp their procedures and technology in order to comply with the new rules. Being formally enforced since October 3, 2015, the industry is still transitioning and adjusting to this massive overhaul.
Discussions also swirled around safety in the field after Realtors faced dangerous situations at Open Houses and home showings. People fought over climbing rental rates and potentially putting a cap on rent to avoid the excessive hikes that far surpass income increases.
The summer of 2015 brought the legalization of same-sex marriage, which also influenced the housing market as the definition of “marriage” was greatly altered. Overall, home sales flourished as confidence in the market grew, rates stayed low, and new loan programs were more available to borrowers who did not qualify before.
Millennials were the focus of many companies as their interest in the market and potential investment grew. How to target this new generation was considered by all as the industry attempted to bring new money into the housing market.
The end of the year is bringing a potential rate hike by the Feds as they discuss giving the economy a boost by bringing rates back to pre-crisis levels. While we await the news of when these rate hikes will occur, we watch as the 2016 Presidential Campaign candidates begin sharing their views on housing, economy, and how best to tackle the issues that are still prevalent throughout both.
There is no doubt 2015 was a whirlwind of changes, news, and development. Everything that occurred leads many to believe that 2016 will bring just as many elements the industry will need to adapt to going forth.