Dr. Cliff Rossi is senior vice president, chief economist, at Radian Group Inc. In this position, Rossi is responsible for research, forecasts and quantitative analysis and [financial] modeling of Radian’s mortgage insurance portfolio and the housing and mortgage markets.
Armed with an overall measure of housing market performance relative to long-term trend; an accompanying metric explaining whether that market is overheated or not; and importantly a way to attribute deviations in home prices precisely to selected market variables, market participants would be in a better position to take precautionary actions to limit their exposure in highly volatile markets.
The FHA finds itself in a delicate position of balancing public policy interests against actuarial soundness of its $1 trillion plus Mutual Mortgage Insurance Fund. These twin policy goals at times run counter to each other, occasionally spilling over into the conventional-conforming market via FHA premium changes that create market distortions and adverse selection problems for the FHA.
Factors that affect the yield on 10-year Treasuries will over time be reflected in mortgage rates. Two of these are inflation and economic conditions. We have enjoyed a low inflation environment for a number of years but if we had a bout of higher inflation it would lead to higher rates as investors in bonds require additional compensation for a loss in buying power.
That lenders may be holding back a bit is not surprising as lessons from behavioral finance studies suggest that individuals tend to weight recent experience more than the past. Applied to the mortgage business and compounded by rising compliance costs, recent experience with heavy credit losses of the crisis could be dampening management enthusiasm for credit expansion in an otherwise expanding, albeit tepid economy.
The 2018 Rising Stars represent the best young leaders in the mortgage industry. Many of our 46 winners are leading companies as C-level executives, making strategic decisions for their organizations or developing new and inventive ways to get things done. Others are contributing through product development, data management or finding new ways to engage with consumers. Across the board, their efforts and accomplishments are influencing the present and future course of our industry.
The multiple characteristics of blockchain make it an incredibly attractive mechanism across industries. It provides an unchangeable, time-stamped ledger that allows for real-time and simultaneous input. It is the perfect set-up for industries where transactions are routinely moved from entity to entity or business to business and where records need to be verified and audited. Naturally, therefore, in the world of title and real estate, blockchain provides an incredibly innovative platform.
It has been proven time and time again that companies that make an investment in workplace culture attract the industry’s best talent and achieve greater success. For leaders who want to see their business grow to the next level, the solution is to focus on building a great culture — a culture of excellence.