Please enable JavaScript.
Coggle requires JavaScript to display documents.
Current Challenges in the Mortgage Industry - Coggle Diagram
Current Challenges in the
Mortgage Industry
COVID-19
Political
Negative Impact: Government mandates all employees work from home if possible (Occupational Safety and Health Administration, 2021)
A lot of mandates such as these are enforced by OSHA and can be both political or legal
This can also be a technology factor but I feel that most businesses have figured out already how to get technology to work in favor of strategic goals
Economic
Positive Impact: Federal Reserve rates lowered to stimulate economy (Board of Governers of the Federal Reserve System, 2021)
Positive Impact: Many people refinancing due to lower rates which is boosting company production
Negative Impact: Many clients out of jobs as businesses close and layoff workers which means less clients and more clients that may/have default
This may be a neutral impact point as the company can prosper with many clients refinancing but there are handfuls of clients looking at or already dealing with mortgage payment issues
Environmental
Negative Impact: COVID-19 itself as a virus affects every aspect of an employees life
This was a hard one to find an impact for as the impact of COVID is legitimately COVID itself and its transmission and effects
Social
Negative Impact: Many employees are refusing vaccinations which forces companies to explore other options to promote vaccination (Occupational Safety and Health Administration, 2021)
Negative Impact: Leadership has to have tough conversations with employees regarding new office mandates (Occupational Safety and Health Administration, 2021)
Technological
Negative Impact: Mass amounts of employees working from home impact IT teams with increased support needs
Negative Impact: Technology has limited capabilities such as WIFI availability/speed/connection and inability to view tone/body language
Legal
Negative Impact: OSHA requirements in the office regarding proximity, etc. create challenges in available space for employees (Occupational Safety and Health Administration, 2021)
Housing Supply Shortage
Political
Negative Impact: Single-family zoning prevents multi-family units from being built that will aid population density and supply (Bernstein et al., 2021)
Economic
Neutral Impact: Rates are extremely low and many clients are rushing to buy/refinance housing which continues to limit available housing
Neutral Impact: House flipping has hit its highest level in two decades and has reduced housing affordability and limited supply (Kolade, 2021)
This is great for our company as more clients are buying and flipping houses which creates revenue but the gap between luxury and affordable continues to grow
Social
Negative Impact: Landlords charge more than the mortgage rate (which is already high) to make a profit which diminishes the outlook on landlords and renting while also decreasing affordability
One in four renters spend more than 47% of their income on rent (Bernstein et al., 2021) :
Technological
Negative Impact: Supply and demand shortage due to "Amazon Effect" where urban development triggers rent increases. The name comes from a 17% rent increase when Seattle redeveloped when Amazon moved in. (Dowell, 2021)
Negative Impact: California is seeing an exodus as housing values skyrocket as the state becomes home to more and more technology IPOs (Dowell, 2021)
Environmental
Negative Impact: Shortage of available land to build new housing (Bernstein et al., 2021)
Legal
Positive Impact: FHFA authorized Freddie Mac to purchase mortgages on manufactured homes which also extends to Fannie Mae (Bernstein et al., 2021)
Positive Impact: FHFA allows purchase of available mortgages of 2-4 unit properties with owner-occupant and renters which allows more buyers (Bernstein et al., 2021)
