Kurt Johnson on housing market
From Mortgage servicing is thriving due to homeowners deciding not to sell, says Mr. Cooper Group CEO · · CNBC Television
“I think that you could see some distress. Like to your point, we're not really seeing anything right now that is concerning. Homeowners have a ton of equity. But over time, you know, you will see some stress, but I think that we're probably a year to 18 months away from that.”
On , Kurt Johnson, Executive Vice President & Chief Financial Officer at MR COOPER GROUP INC, spoke about housing market during Mortgage servicing is thriving due to homeowners deciding not to sell, says Mr. Cooper Group CEO on CNBC Television.
About Kurt Johnson
In a September 2023 interview, Mr. Cooper Group CEO Jay Bray stated that the company's mortgage servicing business is "crushing it right now" and "doing incredibly well," attributing this to existing homeowners choosing not to sell their homes. Bray noted that the origination side of the business "has slowed down dramatically" due to interest rates, though the company is investing in its origination platform in preparation for the next cycle. He said Mr. Cooper has acquired over $100 billion in servicing in 2023, benefiting from servicing being sold in the marketplace. Bray expressed the personal view that mortgage rates will not decline until the second quarter of 2024 and will "stay higher for longer." He stated that home prices are unlikely to come down significantly due to a supply imbalance, as many homeowners with low interest rates have no incentive to sell. Regarding potential market distress, Bray said the company is not seeing anything concerning currently, as homeowners have substantial equity, but he predicted some stress could emerge within a year to 18 months. He also discussed the company's home auction business, suggesting a future marketplace for retail home sales through competitive bidding.