The COVID-19 pandemic has had a devastating effect on economies globally. Almost daily, there's news of businesses closing down and employees being laid off or facing salary cuts.
Support of their local communities has long been a focus of community lenders. Credit unions and community banks across the country are known for their reinvestment into the towns and cities they serve. Charitable giving can take a variety of forms – many times focused on causes and organizations unique to each area of the country. Especially during these difficult times surrounding the Covid-19 pandemic, support of these local organizations and charities is of the utmost importance. This fact has not been lost on credit unions and community banks, and many have stepped-up remarkably in this support during these challenging times.
When 2020 started, we were not aware that phrases like “new normal” and “unprecedented” would become the vernacular of business professionals across America. After a short while, it got to the point where those phrases would be muttered with a semblance of sarcasm at the start of each virtual meeting or phone call. Towards the end of the year, I could feel a sense of hope that 2021 would be a new year, where things would end up going back to the “old normal” in some capacity.
I am a big believer in purpose. Everything goes better when there is a purpose behind it, and the doing of it brings meaningful purpose to the people involved. When people believe they are involved in something meaningful to them, they put more effort into it. They tune in and lock on. I had to learn about purpose in my own industry.
In a year full of challenges, one of the most powerful themes to emerge has been one of gratitude. During a time of uncertainty and change, the kindness and support of others has been a guiding light that has moved us forward in this new reality. Community lenders are no exception. Let's look at how the circumstances that came about in 2020 have affected community banking centers that are the heart of our country.
Mortgage originations, whether new home purchases or refinances, have been booming over the last several months. The latest projections from Freddie Mac have $3.6 trillion for 2020, and 2021 is expected to produce $2.6 trillion. With all these purchases and refinances, why is now a good time to revisit your home equity program?
