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Polaris Home Funding Corp., References Kranz, G. (2021, June). What is…
Polaris Home Funding Corp.
Challenge 1: Employees Wishing to Work Hybrid
POLITICAL
There are currently no immediate political connections that would be affecting our employees to work in office or remote. The only a change in philosophy after the COVID-19 shutdown that changed many peoples opinions about working from home.
SOCIAL
Polaris has three departments that have the ability to work remote while the rest of the company must work from the office. Those who must work in office have more responsibilities that deal with multiple parts of the business operation.
TECHNOLIGICAL
Working in office all of the equipment and network is in house and does not require any additional set up or security. When working hybrid it is necessary for the IT department to provide and set up necessary equipment to be able to work from home.
ENVIRONMENTAL
Allowing a number of employees to work hybrid there will be a increased saving on the amount of fuel used by employees driving to work which is better for the environment. At the same time there are more resources being used to set up the necessary computers and equipment for employees to be able to work from home.
ECONOMICAL
Allowing hybrid work for a number of employees, Polaris has the ability to maintain employee satisfaction and attract high talent employees. The employment level should increase as more people are looking to work hybrid or remote.
LEGAL
Working remotely Polaris needs to ensure its when working remote client information is secure and private. Based on Gramm Leach Bliley Act it is necessary that federal client privacy regulations due to the sheer amount of private information needed for a loan (Kranz, 2021).
Challenge 1: Decrease In Mortgage Production
POLTICAL
As a result of the rapid increase in inflation, the Fed has been increasing lending rates making the the payments on mortgages increase for new purchases.
TECHNOLOGICAL
To keep up with the technology advances of competitors as the internet advances, Polaris now needs to spend more money on marketing only to have their website show near the top of a page on Google searches. With mortgage production down there is less money coming in, which is why it's more important to have Polaris near the top for Google searches for mortgage companies. This is a struggle for Polaris as they need to spend more money that they currently are not bringing in.
ENVIRONMENTAL
The only environmental factor that a decrease in mortgage production is that there are currently less of a demand for homes. With a decrease in home demand in Michigan by 15% between June of 2023 and November of 2023 means there are less need for new house to be built (Michigan Housing Market, n.d.). This decrease in new home needs means there is less material like wood that is being used to build new homes.
SOCIAL
With some people choosing to not return to work after the COVID-19 shutdown, there are a number of people allping for mortgages that Polaris and other companies will not approve them for because they are lacking the last few months worth of a steady pay check from a job.
LEGAL
Over the last few years as inflation and interest rates are forcing many new home owners into default Fannie Mae has been increasing its review polices on appraisals. They are now using computer models to challenge the value that the original appraisers gave the home during the buying process and using these new models that are taking lower value homes in the area to push mortgage companies like Polaris to buy back the default loans.
ECONOMICAL
For many people in the US who own homes, the increase in inflation and interest rates make it nearly impossible to purchase a home of similar size and quality for the same cost of their current mortgage. The pair of inflation and high interest rates are keeping homeowners from moving and having to pay a higher monthly payment for the same value of house.
References
Kranz, G. (2021, June). What is the Gramm-Leach-Bliley Act?. TechTarget.
https://www.techtarget.com/searchcio/definition/Gramm-Leach-Bliley-Act
Michigan Housing Market. Redfin. (n.d.).
https://www.redfin.com/state/Michigan/housing-market