At the moment there is a cry for new talent in the mortgage sector of the finance industry because there is some concern that at its rapid state of growth we will see another crisis akin to the sub-prime lending crisis that led up to the market crash of 2008. Those working in the lending industry are encouraged to seek out colleges that are accredited by the Association to Advance Collegiate Schools of Business in order to get an online MBA degree. With so much movement, there is always a very real danger of some lenders getting ahead of themselves and that’s why it is imperative to have someone with above average knowledge and skills leading the team.
A Look at What Led up to the 2008 Crisis
When the market bottomed out during the latter part of the last decade, interest rates were for the most part at an all-time high and many homeowners couldn’t afford to keep up with their payments. Millions defaulted on mortgage loans and as financial institutions were not getting paid they began to go under. This precipitated a crisis of historic proportions and the result, as everyone knows, is now being referred to as the ‘Great Recession’ around the globe. The unfortunate part of the whole thing was the fact that many of these financial institutions had a huge international presence which set the stage for a drop in the economy in many other countries around the world and perhaps part of what led up to such widespread panic throughout Europe.
Where the Mortgage Industry Stands Today
With the unemployment rate standing at just about 6.17% in the United States, it is amazing to see that there are approximately 287,000 people employed within the mortgage industry. Even so, with the rate of growth, there is a real need for people with an online MBA degree because there are still tens of thousands of jobs yet to be filled. Leadership is still lacking and to avoid another financial crisis, the government is seeing to it that rates remain much lower than they were in the days leading up to the crash. Currently mortgage rates are at 3.5% with conventional 30 year fixed rate mortgages standing at 3.96%. The interest rate for 15 year fixed rate mortgages falls somewhere in between at a rate of 3.24%. These rates are many percentage points lower than established rates in 2008 and if they stay on target, will be a great boon to the economy going forward. However, it is good to take note of the fact that they do vary from week to week so it is good to keep current on mortgage rates.
So then, what is the good, bad and ugly? The good news is that the economy is picking up but the bad news is there are not enough knowledgeable people with MBAs in the field. The ugly is that if a watchful eye isn’t kept on the industry there is some danger that the sub-prime lenders will again overpower an otherwise strong industry. While it is true that the economy is doing well and the mortgage industry is indicative of just how far we’ve come, there is no room to let down our guard.
