Rates are down, Applications and Refinances Are Up… Where is Your Budget?
Articles by: Richey May, Mar 09, 2020
Remember back in January when you set goals and a budget for 2020? If you did so based on last year and interest rate expectations at the beginning of the year, chances are they look a bit ridiculous now.
COVID-19 has caused a myriad of changes in the market, not the least of which being the fact that mortgage rates have dropped to historic lows. This has caused applications for refinances to skyrocket, at a time when purchase volume is also very high. If you’ve been in the industry for a while, you know these unpredictable refinance booms happen occasionally. While a boon to loan officers, these sudden fluctuations can make it difficult for the finance team to update their budgets for the year and model how to effectively use resources and plan for staffing needs.
Add to this the fact that the COVID-19 effect may be fairly short-lived, and that there may be additional volatility given that it’s an election year, and you can see why budgeting for 2020 is such a challenge. Fears about hosting open houses, lower rates of international purchases and a ripple effect from a frozen hiring market may all impact your volume projections in the coming months.
In this industry, we know that change is the only constant. If COVID-19 has your finance team scrambling to adjust their projections, you need a flexible budgeting and forecasting tool that helps you stay ahead of the curve.
RM Plan is a tool designed for and implemented by finance professionals with mortgage experience. We’ll connect to your systems directly to input fixed costs and real-time volume data, and show you how to create multiple projections to help you estimate the impact of market events before they happen. Additionally, you can easily communicate your strategy and update your goals with managers within your company, building trust and creating actionable insights throughout your organization.