Housing Meltdown

"It is our expectation that U.S. home prices, as an aggregate, will decline by single digits in 2023 and single digits again in 2024."

"The problem is, there are a ton of investors sitting in money market funds passively. The answer is making our bonds more appealing by raising the interest rate on that debt. It’s a straightforward formula."

https://seekingalpha.com/article/4609445-us-housing-is-a-dead-man-walking-update-2023

Buying a home in the U.S. is extremely unaffordable as housing, adjusted for inflation and mortgage rates, is the most expensive in four decades.
Home prices are down 1-4% over the past year.
There is not a “shortage” of housing.
The unprecedented expansion of the money stock ignited the strong rise in home prices.
Our research concludes that single digit declines in home prices are probable over the next 18 months.

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The problem is mortgage is a low risk simple credit product. It’s not hard to underwrite and generate a mortgage so FinTech is making a ki-ling there. Our mortgage origination process is very very manual which unalives our margins. I suspect we will monitor the economic uncertainty around the housing market then re-enter the mortgage market much much leaner than we were before

That's not a reason to ki-l mortgage, it's a reason to get lean and greatly improved oir mortgage business while volumes are low and we can catch our breath. Then when the market comes back, which it always does, we'll be in prime position to take advantage.

Alternatively we can shut it down and ki-l one of our best sources of revenue permanently, hoping to replace it with pie in the sky BS and sectors we aren't remotely competitive in. Yay Charlie!!

Which is why Charlie is ki-ling mortgage off

Thread regarding Wells Fargo & Co. layoffs

Housing Meltdown

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