HOUSINGNEWS REPORT
HOW TO RECESSION-PROOF YOUR REAL ESTATE BUSINESS
Real Estate Brokers: Managing Ebbs and Flows Established real estate brokerages such as Long & Foster have plenty of experience in weathering previous recessions, giving them confidence for dealing with future recessions, according to CEO and president Jeff Detwiler. “Having been in business since 1968, we have lived through other downturns, and we have learned to operate our company effectively in the market’s ebbs and flows,” he said. “As we have
decline in refinance volume. “Thus, the net result could actually be an increase in mortgage originations as happened in 2001,” he concluded. But LendingTree is not depending solely on a possible refi boom triggered by the next recession to recession-proof its business. Its recent diversification along with its strong lead generation chops provide additional insulation against cooling mortgage demand, according to Kapfidze. “We’ve added marketplaces for personal loans, credit cards, auto loans, student loans, small business loans, reverse mortgages, deposit products and credit services,” he said. “Additionally, our business model can operate efficiently in a rising rate environment when lenders have difficulty in bringing in organic volume themselves. That’s when they’ll come to LendingTree to fill their pipeline, and we can market into that demand, or pull back if the unit economics don’t make financial sense.” “A rate decline would trigger a mini-refi boom that would address many of the challenges the industry currently faces due to the decline in refinance volume. Thus, the net result could actually be an increase in mortgage originations as happened in 2001.”
always done, we are maintaining our focus on our core business areas — real estate, mortgage, settlement, insurance, property management and vacation rentals.” But Long & Foster is not just taking a defensive posture when it comes to recession-proofing its business, according to Detwiler. The company is also going on the offensive to stay in step with evolving realities in the marketplace.
U.S. HOME MORTGAGE ORIGINATION TRENDS PURCHASE REFINANCE HELOCs
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
TENDAYI KAPFIDZE CHIEF ECONOMIST LENDINGTREE
0
4
SEP 2018 | ATTOM DATA SOLUTIONS
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