Work From Home Update
Like many of you, we have been closely monitoring the executive orders from the governors of the various states in which we have offices. We have also been paying close attention to reports on new infection rates, hot spots, surging hospital admittance numbers, and the positive impact the stay at home rules have produced.
As a result, we have decided to continue our current work from home rules through May 1st. This also applies to our no work travel rules. At some point prior to that date, we will reevaluate the situation and determine whether it is safe to return to our offices to work on May 4th or whether we need to extend work from home rules further. Ashley will be forwarding an email regarding this decision to all staff later this week.
CSS Business Update
We are all extremely fortunate to be in a business receiving record numbers of orders during this time of government ”stay at home” directives. So many other employees and businesses are currently out of work and suffering as a result. While I am sure that CSS will face more challenges before this health crisis and the resulting economic impact is resolved, we want to share with you current industry forecasts.
What does the rest of the year look like?
The Mortgage Bankers Association forecasts that the economy is already in a recession as economic output has declined 10% to 25%. By the end of Q2 (June 30th), they predict unemployment will rise to 8% compared to its current 3.6% level. They say it will take most of Q3 (ending September 30th), to fully end coronavirus impact and that business should return to normal by year-end.
Specific to the mortgage industry, the MBA forecasts that refinance volume in 2020 will double previous expectations. 2019 refinances totaled $901 billion. The forecast for 2020 was $600 billion. The revised forecast for 2020 now exceeds $1.2 trillion. This huge increase is a result of unexpected low mortgage rates caused by the effects of the coronavirus pandemic. While purchase mortgage forecasts have been tapered somewhat, the MBA still forecasts an 8% increase over 2019.
All told, given the low rates and the financial stimulus recently passed by Congress, we currently anticipate relatively favorable conditions for our business the balance of this year. Given current conditions, that is a pretty incredible statement. As I said, CSS and all of us who work here, are very fortunate.
COVID-19 Customer Notifications
As several managers mentioned at this past week’s CSS Huddle, CSS has done an excellent job notifying our customers of the COVID-19 related business changes impacting the states in which they lend. I wanted to share with you examples of the quality communications that have been sent to our customers and vendors. So, Jake has linked examples for you to view.
A special thanks to Ashley for putting these communications together with the support of Sherri and the Operations Team, and Maura on the legal side. These proactive communications reinforce CSS as an indispensable partner for our lender customers.
Thank You
Lastly, I want to thank you all for your focus and determination to continue to deliver quality results to our customers despite the challenges of working from home. I am not the least bit surprised by your high level of performance! Let’s all continue to push through these difficult circumstances in the weeks ahead. The end result will be even more to be proud of than what has been accomplished to date.
