By David Lykken
Special to MPA
Last week, on the Lykken on Lending broadcast I host, my colleagues and I discussed trends we see occurring in the mortgage industry. One idea that kept coming up was discussion on volatility. It seems unanimous--we can expect 2015 to be one of the most volatile we've seen in years.
There are many factors contributing to the volatility in the marketplace. Obviously, the ever-changing nature of regulations will heavily influence how investors interact with the mortgage industry. There are also larger economic trends taking place, from currency in Greece to oil prices and the energy industry. There are even political events, such as the conflict in the middle east, that can have far-reaching consequences affecting our industry. It seems like everything is topsy-turvy right now. So, what can we do about it?
The thing about volatility is that it makes prediction and preparation difficult. But, there are things you can do to prepare for changes in the market and industry. You can build in safeguards for the fallout that may occur. Make sure the technology vendors you are using are sustainable and can provide services through difficult economic changes. Make sure you write in provisions for different potential events in your contracts. In short, times of volatility call for greater vigilance. Be on your guard. Greater volatility is coming--be prepared for it when it hits.
A regular contributor on CNBC and Fox Business News, David also hosts a successful weekly radio program called “Lykken On Lending” that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals. Recently, he started producing a 1 minute video called “Today’s Mortgage Minute” that appears on hundreds of television, radio and newspaper websites daily across the United States.