Mortgage Bankers Association
10/28/2024 | Press release | Distributed by Public on 10/28/2024 09:12
Prepared Remarks of MBA Chair Laura Escobar at the 2024 MBA Annual Convention and Expo
DENVER (October 28, 2024) - Laura Escobar, 2025 MBA Chair and President of Lennar Mortgage, delivered the following remarks at MBA's 2024 Annual Convention and Expo.
[Please Note: These are prepared remarks. Escobar may add to or subtract from these remarks during the course of her presentation. Portions of the text may be omitted during the speech.]
Good morning! And thank you for that incredible welcome!
This is one of the biggest honors of my life. I stand here with immense pride and gratitude.
But I also want to make something clear… I don't want to be standing here at all.
Let me explain what I mean. I couldn't be more excited to serve as your chair for the next year. I love the MBA and this business.
But I didn't accept this role to give speeches. I'm not here to stand on a stage, talking at you. I want to be in the crowd, talking with you, and collaborating with the incredible people in this industry.
For that matter, I want to be on Capitol Hill, and in state capitols, talking to lawmakers about what you need, and how we can work together to serve even more families.
If you want to know what I'm going to be like as chair, that's it. I'm here for the people.
The greatest joy in my life is building relationships that lead to results. I want to help our industry make a bigger difference in more lives. And to make that vision a reality, I'm going to lead with heart. Leading with heart embodies a deeper strength one that fosters trust, collaboration and innovation.
When a leader prioritizes empathy and compassion, they create environments where people feel valued and heard. This is not a sign of weakness; it is a strategic advantage.
This has been my purpose from the beginning. I have been and continue to be passionate and driven about this industry. I come to you with greater than 40 years of industry experience. From Operations to Production, and everything in between.
I even ran an IMB.
Currently, I am privileged to serve as President of Lennar Mortgage. At every stage of my career, I've been driven by one goal: to make a difference. Together, we get to help hundreds of thousands of families achieve their dream. The dream of homeownership.
Together, we can accomplish extraordinary things, and I'm here to help lead the way. Enough about me…
We are facing a lot of challenges right now. To get through these tough times, we need all the intensity we can muster.
And we need to bring our energy to bear on finding real solutions to the problems we face. As chair, I'm going to be focused on three main priorities. Housing Supply, Affordability and Education. In my mind, Housing supply and Affordability are two of the biggest issues facing Americans today, and for our industry Education is critical.
First and foremost: Starting today, the MBA is going to get a whole lot louder on housing supply. We are currently short 1.5 million homes. In 2023 alone, the number of households grew by 1.6 million, while housing stock only grew by 1.3 million. We aren't keeping up. Housing supply is about more than just new homes. It's also about rebuilding and rehabilitating older homes.
The more homes that are available at all price levels, the more Americans can buy, and the more loans we originate. But when fewer homes are on the market, the fewer people we can help achieve their dreams.
That's the situation we're in today. Decades of over-regulation have made it increasingly difficult to build new homes and rehabilitate old ones. For many small builders, it's now close to impossible. And as fewer new homes come on the market, the cost of other homes rises even faster.
75% of land in the United States is zoned for only single-family homes The average single family home now costs more than $390,000 to build More than $93,000 of the final price of a new homes is due to government regulations
Labor and building materials have increased by 31% since the beginning of the COVID pandemic. We're on the verge of a vicious cycle, in which fewer and fewer people can afford the American Dream of homeownership. That's not good for America.
All our companies want to help solve this crisis. In fact, the CEO of one of America's biggest mortgage lenders recently told us, MBA needs to lead this fight.
He said, and I quote, "the only way to bring down the cost of housing is to build more homes."
That is basic economics - supply and demand.
Rest assured; MBA is going to beat that drum in the year ahead. We'll call on lawmakers and regulators to do everything they can to boost housing supply. We know the demand is there. And as mortgage lenders, we're ready to meet it - and help millions more people achieve the dream of homeownership!
My second priority is closely related. I'm doubling down on MBA's longstanding message of improving housing affordability. And we're going to come at this issue from every angle - not just housing supply. We all know that affordable housing is hard to find.
The Wall Street Journal recently said that while interest rates are coming down, home-insurance costs are rising. In fact, insurance has risen by 52% over the last 5 years and property taxes have risen by 18% over the same period. This is pushing the total monthly payment even higher. And federal regulations don't help - CFPB, HUD, FHFA, the banking regulators and the GSEs have rolled out many new rules, interpretations, and guidelines that contribute to deteriorating affordability.
We all know they've made lending more expensive. They're raising our cost of doing business and they're increasing the fees that borrowers inevitably pay.
It now costs more than $11,000 for a lender to produce a mortgage loan. In 2022 alone, the cost of producing a loan rose 23%, which is almost $2000 and guarantee fees increased 7%.
It feels like there is a lack of urgency. Even with our federal housing agencies - the GSEs, FHA, VA and RHS -- it has become way too difficult to move forward with common-sense ideas that would make lending, borrowing, and homebuilding more affordable, especially when it comes to technology and sustainability.
Enough is enough. Remember when I said I'm all about relationships? Well, that's a key part of my approach. I've spent years building strong bonds and have created trust and goodwill, and now is the time to use those relationships. My message to them and every policymaker in D.C. is going to be simple: stop talking about affordability -- and start delivering on affordability.
In recent months I have seen more urgency from the FHFA and the GSEs, and progress on some important issues MBA has raised, and I look forward to hopefully hearing more from them in our sessions later this morning.
My third big priority revolves around education. Put simply, I want to invest more than ever in training the next generation of mortgage professionals. We all know our country is changing, demographically. And we have to change with it. I say this from experience.
There was a time at my company when I was personally doing a majority of our loans. Why? Because I was the only person on staff who spoke Spanish!
The good news is that MBA is already committed to recruiting younger and more diverse people who can lead our industry into the future. In 2022, we launched an exciting project called Mortgage Banking Bound.
This program offers 100 hours of instruction to college students, led by industry professionals and developed by the MBA Education team. Upon completion, the students receive an executive certificate in residential real-estate finance.
Thus far, 44 students have graduated from the program, and we are expecting a similar number this year. Mortgage Banking Bound was launched at Barry University, in Miami, and we've already expanded to Middle Tennessee State University. But we have even bigger plans.
Next year, we're going to move into the Dallas College. And we're also in talks with universities in Michigan, Colorado, and Alabama. At the same time, we're developing an accredited course at Cleveland State University, focused on loan origination and processing. And we're working with the University of Nebraska on the possibility of offering stackable certificates in everything from underwriting to compliance and servicing. Initiatives like these will help all our companies find the talent we need for decades to come.
Absolutely Amazing!
Thank you to those who have already pledged to support this effort.
If everyone in this room would support one student … what a huge impact we would make. These students are your next rockstars. Help us help you.
On the screens you can see the website address where you can find more information and learn how to get involved.
As I said when I started - This is one of the greatest honors of my life. I am standing here because of the encouragement and support of others. When I first came to MBA, I immediately got involved with my comfort level: mPower and MBA Opens Doors, the feel good stuff. Why? Because I saw a chance to make a difference in people's lives.
I also dove headfirst into the Mortgage Action Alliance and MORPAC, because I saw how they build impactful relationships in Washington, D.C. I had the privilege of attending both the Republican National Convention & the Democratic National Convention where the MBA was honored and recognized at every turn. How impressive is that?
If you are not already involved with MAA and MORPAC, you should be. They're absolutely essential to securing better policies that help people. The MBA has a lot to offer, and I encourage each of you to get engaged in some way. As I step into the Chair role - I am going to make you two promises. First, I'm going to draw on the wealth of wisdom from the women and men who've come before me. The former officers of MBA have built this trade association into a powerhouse, and make no mistake: They still have a lot to offer. Would all the former officers please stand? Know that we - I - see you, know that we - I - respect you, and we will reach out to all of you!
Second, I'm going to learn from all of you- our MBA members. This year is about you. I want to know your needs, when you need it and how the MBA can get you the help you need.
The more you talk with me and the MBA team, the more we can help you succeed. As we move forward, let us embrace the power of leading with heart.
Let us redefine together what it means to be strong leaders. Leaders who inspire through compassion, who build resilient teams and understand the most sustainable path to success is paved with human connection.
Like I said, I'm all about relationships, and I'm going to lead with heart. As we grow together in friendship and partnership, we'll rise together in service to others.
Thank you!