Ep. 28 - Navigating Capital Markets and Its Perspective on the US Economy with Rob Chrisman
We’ve been hearing a lot about rate hikes and recession, but how has the Fed’s actions affected lenders and servicers? How are current buying decisions indicative of millions of people across the United States? Today we’re welcoming Rob Chrisman, a veteran of the capital markets side of the lending industry since 1985. In this episode, Rob will explain what capital markets involve and how they relate to selling loans, similar to bonds. We tap into Rob’s incredible expertise to discover why lenders make certain moves like selling their loans in the primary market and what happens when a loan closes. Additionally, we’ll look into the Federal Reserve’s actions and how they’ve impacted the US economy and speculate on the future of lending and capital markets.
Tons of stuff to cover today, from debt levels and inflation to insider knowledge of the current state of the economy and its complex relationship with debt and interest rates. Tune in to learn more!
[00:01 - 07:34] Rob Chrisman expertly explains the fluid nature of capital markets and mortgage servicing
[07:35 - 15:34] Understanding the effects of rate hikes on mortgage servicing and homeowners from the capital lending side
[15:35 - 31:40] The impact of Federal Reserve rate hikes on the US economy—examining inflation, soft vs. hard landing, debt, behavior, and the result
[31:41 - 38:33] Staggering credit card debt and inflation—how can we stop the spending?
[38:34 - 47:43] Speculating on the future of interest rates dark side of quick drops rates
[47:44 - 59:36] Consolidation, exit, mergers, acquisitions, and new tech in the lending industry expected in 2023—what loan officers need to do to keep up
[59:37 - 1:04:52] News is not your friend: how to be discerning when it comes to news sources
Quotes:
“If you think about the US economy, it’s like an aircraft carrier times a million… It takes a while to do things. So the actions that the Federal Reserve has been taking had a cumulative effect on things—it’s taken a while, but now we’re seeing the result of that.” - Rob Chrisman
“The recession, to some extent, is psychological—to some extent, is numerical and statistical.” - Rob Chrisman
“I think rates going down are greater than the odds of rates going up.” - Rob Chrisman
"The US government may have had a bond payoff that they were paying 8% on, and when they can refinance it at 2% or one point a half percent, they can save a lot of money just like households save a lot of money by refinancing." - Rob Chrisman
"Debt is a big part of our economy, whether it's mortgage debt or student loan debt, or credit card debt. You know governments have debt. The numbers that you mentioned… They're staggering." - Rob Chrisman
"You don't want to get into a volatile interest rate environment just like you don't like a volatile stock market environment." - Rob Chrisman
Resources Mentioned:
You can get more from Rob by going to https://www.robchrisman.com/ for daily mortgage news and commentary.
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