2020 has certainly been a year to remember. While we may be ready to firmly plant our feet in 2021, we shouldn’t leave the past 12 months behind without taking a critical look at how the COVID-19 pandemic has impacted the housing market, and how it will pave the way for 2021 and beyond. Before we repress these 2020 memories, let’s dive into how this pandemic has created housing disruption in a number of areas of the industry, providing us all a nudge toward trying new processes and technologies that we maybe have assumed were still a few years away.
Let’s start with a look at originations and delinquencies. We’ve all thrown out our 2020 forecasts at this point as the origination market has screamed to all-time records. According to the Mortgage Bankers Association, mortgage origination volume is expected to reach $3.1 trillion, with the largest refinance market since 2003 and the largest home purchase loan market since 2005 and 2006. Then of course, we have the pandemic, which thrust us into an unexpected level of unemployment thereby increasing delinquencies. As unemployment increases and incomes decline, borrowers refrain from buying homes and the rate of requests for forbearance or some type of homeowner assistance increases, naturally. It’s at that moment that the mortgage industry changes course from focusing primarily on helping borrowers purchase homes to helping them keep their homes.
Justin Malonson is the Founder of LyfeLoop a 16+ year tech innovator, investigative media researcher and host of the Freedom Not Control Podcast live on Voice America. Justin is a highly sought-after tech entrepreneur, industry speaker and winner of the coveted Business Achievement Awards “Top Digital Marketer” award. With 16+ years of demanding experience, Justin has worked with over 3,000 businesses including amazing clients such as Blue Cross Blue Shield Association, Sotheby’s International Realty, Duke University, White House Black Market,Tiffin Motorhomes, Bass Pro Shops and Beazer Homes USA.