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I get switched gears here and talk about the housing market six years after the bubble burst the Consumer Financial Protection Bureau.
If that's outlining new set up home loan rules but -- the new guidelines really make the mortgage process more transparent are just.
-- -- -- Let's ask someone he sure has wealth of experience in the mortgage industry's Quicken Loans CEO Bill Emerson -- happy with us right to -- -- first let's remind our viewers what a year quicken has had seventy billion in loans closed.
Vs the prior year and the prior record of thirty billion that is tremendous growth -- -- conditions.
And even confidence among homebuyers so improved in that time.
Well I think there's a variety of reasons for that number one rates were low I think that's helpful number two you saw a lot of market participants shift their focus around what they -- -- do for mortgage.
And then number three with our platform with the centralized nature of our platform of technology and process award winning client service.
Folks needed a place to go so they were calling us and trying to find a way for them to help themselves in a refinance in a purchase transactions I think that's part of the reason.
Once again seven -- billion vs thirty billion in loans close the prior year if your own business actually growing faster than housing market's recovering.
Yes there's no two ways about that -- -- -- the housing market is.
Let's talk -- -- covering it stabilized.
Home prices of kind of bottomed out you're seeing a little -- -- an increase at some some regional players you're seeing.
So multiple offers but it's not this is not a great recovery yet it's good to see where -- Balanced out at.
We've got a long way to go -- so quick in loans and second largest originators -- FHA mortgages the fourth largest VA loan provider you say the home affordable refinance program or harp.
Is also critical tool in today's mortgage landscape.
Your -- for me if you will how the low equity borrowers are faring in this current marketplace.
So the -- equity borrowers are still primarily focused on an FHA are revered mortgage.
And the lending criteria around that is is pretty tight so -- it's a little bit more difficult to qualify for a mortgage today for a -- equity.
Far more than -- might have been in the past and as you indicated the CF -- is coming out -- what they call a qualified mortgage rule here hopefully tomorrow.
And that's probably gonna define the lending landscape here for the next few years -- a lot of loosening credit or tightening further asked the question that you think you're the insider.
I think it's gonna be roughly the same it's probably gonna naral credit a little bit -- -- we roughly the same to what we're dealing with today and that's the given -- was the word is that's better news in what we thought so what does this mean according to this CF PP.
Either gonna look to standardize home loans prevent exotic loans and of those of the sub prime alt -- loans -- -- and generally aim to prevent another sub prime crisis but what what does that mean is there anything until like check the box the kind of loan you want hat.
Know also what -- -- this is Dodd-Frank.
Kind of outlawed want to look underwriting guidelines that had existed that calls a lot of the problems that we have -- -- the rules that are being written now is really the ability to pay.
And it's going to be it's not -- check -- it's.
What what there's lending criteria that it will exist based off of this new rule and if you land within that criteria will be consider -- qualified mortgage and you'll be.
Good to go from an ability to repay if you went outside of that you're gonna have -- increase litigation risk as a lender so folks are gonna probably stay inside the four corners of that new box.
So what does that mean for Quicken Loans also considering the fact you had the robo signing settlement yesterday which now -- the big banks move -- so -- looking at more the competitive environment in this new year.
We'll see out of office going to be more competitive I mean -- the settlement that took place really has more to do servicing.
I think that you know we've seen consolidation and usually competition comes from having more players in the market place so I don't know it's going to be necessarily more competitive.
And and help the consumer from that perspective.
Pump as we see below -- that lot of missile depend that this group of the murky landscape is gonna start to get clear here in the next few months.
Don't have any time but interest rates will they stay near these historic lows.
Great question I think so but the -- with a couple little bit okay take it thanks so much fell at a significant month trichet -- -- -- -- it's my pleasure thanks.
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