The single greatest factor for recovery in the mortgage industry

by MPA03 Sep 2014
By David Lykken
Special to MPA

On my radio show, I recently had the opportunity to discuss the state of the mortgage industry with the MBA's new incoming chairman, Bill Cosgrove. When I asked him about what the industry needs in order to recover, he continually came back to one single factor: employment. If our industry -- or any industry for that matter -- is to survive and thrive in the economy, people need to be working. I could not agree more.
The challenge faced in getting more Americans to full employment is multi-faceted, and there are no easy answers. It's dealing with globalization and technology  that are inevitably shifting jobs to more efficient alternatives. It's creating a system of education that better prepares students to be productive workers in society without those same students incurring unmanageable student debt. It's fighting with poverty to induce the entrepreneurial spirit in the disadvantaged segments of society.
The causes of unemployment are many and the solutions are hard to find. But one thing is clear: putting people to work is the only way we will get out of the mess we're in. How we create productive jobs is another question, but I only wish to stress its importance. If people aren't secure in their work, they aren't going to take risks -- they aren't going to take out mortgages. Putting the house before the job is like putting the cart before the horse -- we just won't go anywhere. We need jobs first.

David Lykken is 40-year industry veteran who consults on virtually all aspects of mortgage banking. David 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.


Should CFPB have more supervision over credit agencies?