NOTE: This is not an endorsement of a specific mortgage lender. I routinely consult with clients one on one about that subject, but the purpose of this post is simply to highlight another in a long line of decisions made by businesses to invest in the strength of the Texas economy.
This article appeared in yesterday's Austin Business Journal:
Chase Bank hiring 275 mortgage lenders in Texas, 25 in Austin
Read more: Chase Bank hiring 275 mortgage lenders in Texas, 25 in Austin - Austin Business Journal:
I suspect that mortgage companies are planning/hoping for growth in many areas of the U.S. as we see more indications that the worst of the recession may be behind us. This level of hiring in the next six months, however, seems to me to be a strong vote of confidence in Texas.
With homebuyer tax incentives ending this week, many expect demand for homes (and new mortgages) to at least pause for a couple of months. Since the Fed stopped buying mortgage-backed securities last month we have already seen interest rates increasing slightly, and a stronger economy would typically lead to higher rates in any case, so most bankers are not likely planning for a surge in refinance loans. Moreover, this ramp-up in lending capability by Chase will be complete just as the real estate industry reaches the usually slower winter season.
So ... with those arguments against this hiring, I assume Chase sees offsetting strength in Texas and expects to originate many more loans here than they have in recent years.