Mortgage companies in Michigan are preparing for an even greater surge in mortgage activity. It's motivated by the recent emergency move by the Federal Reserve board to slice the prime lending rates by a half point.
"We're on the cusp of seeing mortgage rates at a historic low because right now, you can't turn on anything without hearing about the coronavirus," said Bill Banfield, executive vice president of capital markets at Quicken Loans, according to Detroit News. "Fear is pushing people out of stocks and into bonds."
Meanwhile, companies like United Shore Mortgage is looking to beef up its personnel. Though the company was already prepared to tackle the increase in volume, it still expects to add 2,000 jobs to its existing 5,400 employees.
"Although rates dropped, we were still anticipating this kind of volume and growth through various different strategies that we had," said Alex Elezaj, chief strategy officer for United Shore, according to the report. "It didn’t come as much of a surprise for us. The rates dropped, but in terms of growth, we were preparing for this kind of growth anyway."
There is a fear that banks and mortgage lenders could come under serious pressure to produce a greater number of loans or refinances while substantively increasing their overhead costs.
To learn more about how Michigan mortgage companies are dealing with the rush of prospective borrower and homeowners, click here.