Their overheads are too high. If they have 1000 people working in the mortgage department, and the number of mortgages drops suddenly and dramatically, they will lose money before they can lay off or redeploy the workers.
Their overheads are too high. If they have 1000 people working in the mortgage department, and the number of mortgages drops suddenly and dramatically, they will lose money before they can lay off or redeploy the workers.
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Exactly.
They made a killing from 2020-2021 and now their loans during 2022 were down 50%. Also, their costs went up 23% between 2021 & 2022.
It was a nice run but eventually lack of inventory, covid hysteria winding down, less buyers, high prices, & higher interest rates were going to cool it off.