"The worst winter the industry has ever seen": Former Federal Housing Administration head David Stevens talks about the rough road ahead for mortgage lenders.

In this article, former Federal Housing Administration head David Stevens discusses the challenges facing mortgage lenders in the current housing market. He emphasizes the impact of high interest rates and a shortage of housing supply on homebuyers, particularly younger Americans. Stevens suggests that the federal government needs to prioritize housing and provide leadership to address these issues. He also discusses the role of states and the federal government in making housing accessible and the need for a national effort to increase the housing stock. Additionally, he addresses the limitations faced by housing policy leaders and the potential impact of climate change on borrowers and lenders. The mortgage industry is currently facing significant challenges due to the economic climate, with many lenders struggling to survive. The lack of intervention from the Federal Reserve has led to high interest rates, causing mortgage companies to suffer. As a result, the industry is experiencing consolidation, with some companies selling or shutting down. To survive, lenders can consider selling parts of their servicing portfolios, making cuts to their operations, and outsourcing certain functions. However, it is important for lenders to be cautious not to overcorrect and damage their organization's competence and commitment. Despite the difficulties, there is hope for the future, as the housing market is expected to improve with increased demand and inventory. The lesson learned from this challenging time is that success in the mortgage industry requires more than just favorable interest rates. [Extracted from the article]

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