Some of you among us may know the phrase, “Don’t harsh my mellow.” Basically, it means, “Don’t rain on my parade (i.e. amazing levels of mortgage transactions and income) with your harsh attitude (i.e. every silver lining has a cloud).”
Just let us sit back and enjoy the cash flow dammit!
But no, Anthony Hsieh, CEO of loanDepot, is here to harsh your mellow. As a matter of he’s so harsh, he issued a press release that states, “(T)his may be the best of times for US homeowners [but] the market could prove to be problematic for the home lending industry as a whole.”
Why’s Anthony being a buzzkill? The market size, which he estimates could hit $5 trillion in activity, combined with excellent consumer credit ratings is going to create what he calls an “industry whiplash.” Industry lending capacity won’t equal consumer refinance demand.
How bad could he get? Anthony compares it to free airport WiFi. Yep, things could get that bad if consumers flood the refi bandwidth.