ACC Mortgage under no pressure from competitors or recession, says CEO

Even though ACC Mortgage has risen above the pandemic’s challenges, it has not lowered its guard in anticipation of difficult times ahead.

“There are several forces at work to make the near term very challenging,” Senko said. “First, the cost of borrowing has increased, so the purchasing power of the consumer has been reduced. That means home prices must come down in order for borrowers to be qualified to buy the home.

“The stock market has taken a hit, so folks can’t just sell stocks to afford the home. Double whammy for the market. On a capital market basis, the folks who buy our paper are not willing to pay a premium until the Fed stops raising rates. The Fed has been very clear that they are raising rates to 4.5%, and then they will be ‘neutral,’ meaning they do not plan to raise or cut rates.

“At that point, the market will be able to price our paper appropriately, and firms should be able to make normal income on a per-loan basis. Inflation should be greatly reduced from [current] levels, and if the job market doesn’t get hurt too bad, consumers will be able to buy homes at a reduced price in a higher rate environment. Barring any black swan event, assuming Congress becomes split, then the world and economy should operate on a normal basis.”