Imagine a best-case scenario in which the Coronavirus is under control and the country is up and running by May 1. How have our social norms changed? What do these cultural shifts mean for organized real estate? And how is the industry different in a post-COVID-19 world?

On this episode of Industry Relations, Rob and Greg get relentlessly positive, discussing the post-Coronavirus landscape of the real estate industry should the best happen. They weigh in on the cultural shifts that are likely to occur in the aftermath of COVID-19, predicting which rituals will persist once the current restrictions have been lifted.

Greg and Rob go on to debate what open houses will look like in a post-pandemic world, why showings may (or may not) be restricted to serious buyers, and when we might be back to pre-COVID transaction levels. Listen in for our hosts’ best-case expectations regarding buyer demand as well as NAR membership and brokerage numbers come September—pending a V-shaped recovery.

What’s Discussed: 

Rob & Greg’s parameters for this potential best-case scenario

-Vaccine or cure for virus (no resurgence)

-All restrictions lifted, back to work on 5/1

How the culture is likely to shift in the aftermath of COVID-19

What open houses will look like in a post-Coronavirus world

Why Rob believes showings will be restricted to serious buyers

When we might be back to pre-pandemic transaction levels

Why Greg expects a best-case scenario uptick in buyer demand

Rob’s prediction of a 20% drop in first-time homebuyers

Why Rob & Greg anticipate a 20% decline in NAR membership

How Rob & Greg differ around which agents will leave

The potential for 25% of small brokerages to join a larger team

Connect with Rob and Greg:

Rob’s Website

Greg’s Website

Our Sponsors:

Cloud Agent Suite

Notorious VIP

On the surface, the government’s effort to support homeowners through forbearance is a good thing. Many Americans have lost their jobs because of the Coronavirus pandemic and simply don’t have the resources to make a mortgage payment right now. But what does this mean for the servicing industry? Why are lenders concerned about the unintended consequences of Washington’s response?  

On this episode of Industry Relations, mortgage banking expert Rob Chrisman joins Rob and Greg to discuss what’s happening in the capital markets as a result of the Coronavirus shutdown. He walks us through how a mortgage functions as a product, explaining the relationship between the servicer and the end investor in a mortgage-backed security or MBS.

Rob C. addresses how government forbearance for borrowers will impact big banks as well as smaller, independent lenders and weighs in on Ginnie Mae’s promise to back nonbank servicers lacking the capital to pay investors. Listen in to understand how the Federal Reserve’s activity in the MBS market affects mortgage servicers and learn why the lending system is not broken despite the changes imposed by the health crisis.

What’s Discussed: 

Rob C.’s background in mortgage banking + understanding of capital markets

How a mortgage functions as a product manufactured and sold to a buyer

The relationship between a mortgage servicer and the end investor

How government forbearance due to COVID-19 impacts mortgage servicers

Ginnie Mae’s promise to back nonbank servicers lacking capital to pay investors

How current circumstances compare to the 2008 recession

The tens of billions of servicers will owe in margin calls due to the MBS price increase

The consequences of the Federal Reserve’s activity in the MBS market

Why the non-QM and jumbo loan markets are on life support 

Why Rob C. is predicting a V-shaped recovery for residential lending

How underwriting guidelines have changed in light of the global shutdown

Why property values are unlikely to take a dive across the board

Connect with Rob Chrisman:

Rob’s Daily Mortgage & News Commentary

Connect with Rob and Greg:

Rob’s Website

Greg’s Website

Our Sponsors:

Cloud Agent Suite

After working at Stellar MLS for over 10 years, most recently as the VP of MLS Services Melissa King is joining Compass as an Industry Relations Director. She joins Bill Fowler (Sr. IR Director) and recently added Joe Schneider who started at Compass last month after six years at N.A.R.

Melissa knows her stuff and will be working at Compass to manage relationships with RE industry partners, assist expansion efforts in new & existing markets, work closely with legal and product teams on compliance issues, and lobby for policy changes.

Congrats to Melissa and Compass. Hopefully, we will all be together again this year to raise a glass.

T3 Sixty spearheads new nonprofit to improve diversity in real estate

“It is hard to get into real estate, but it is much harder to stay in real estate and remain consistently successful,” said Kenya Burrell-VanWormer, herself a former real estate agent. Burrell-VanWormer is a sixth-generation Texan and native Houstonian and has been involved in real estate for almost two decades. Her achievements earned her honors as the Houston Association of Realtors’ Realtor of the Year in 2009. “It is extremely important to create role models and roadmaps for those who have a dream of becoming a successful Realtor,” Swanepoel said.

The Foundation has an audacious goal of raising $100 million in donations and sponsorships over the next decade and using that to help 40,000 people enter the real estate industry and build toward successful, long-lasting careers. All brokerages, agents, vendors, associations and MLSs are encouraged to participate in this meaningful cause by providing donations, services and support of any size.

A great cause and I think everyone can help. Kenya Burrell-VanWormer is an excellent choice as their first Executive Director. I had a chance to speak with Kenya on a recent Industry Relations podcast, you can check that out here.