2 min read December 2021 — Bank of England Mortgage offers the strengths of a strong capital base, a solid and committed business plan and experienced management along with the assurance of a successful track record. In an interview with Invest:, Vice President for Northeast Florida Quinton Harris discussed the bank’s growth, shifts in demand, effects of legislation, rise in prices, generational differences and interest rates.
How did Bank of England Mortgage ensure growth despite the challenges posed by the pandemic?
We were very fortunate to be in an industry that was positively impacted by people staying at home and realizing the need for more space or a home office. This, in addition to the influx of people relocating to Florida and the local government’s assertive plan to handle COVID were fundamental to the increase in demand we experienced. We grew because our business is focused on home purchases, which allowed us to continue working with real estate agents, partners, and builders. Also, our culture and people played a big role in our continued success as employees were quick to adapt to working from home and continue to stay focused on our relationships and the people we help each day. We hire directly out of college and spend a significant amount of time developing talent through our internal training program, BOE University, to strengthen our company culture. Having young people join us is refreshing for the company and we’re thankful we’ve been recognized as a Best Place to Work by the Jacksonville Business Journal for six years in a row.
What are the biggest challenges or greatest opportunities that the banking and financial services are facing?
The banking, mortgage and financial industry is ultra-competitive, and Jacksonville is on everyone’s radar. Competition has grown rapidly in the past five years. We used to have approximately six competitors within a 5-mile radius of our office, and we now have 38 in the same space. Remote work has driven demand; however, as in-person interactions became limited, customers have had a hard time distinguishing the best services through solely visiting a website. To make sure we’re providing the most value to our clients, we’re continually improving our digital offerings while focusing on how to keep things personal in an online environment. This often means personal phone calls, video messages, and even FaceTimes to stay connected with the people we help. Our customers express their satisfaction given how many other companies stick to automated messages and call centers with little personal connection.
The mortgage industry is thriving in Jacksonville and it’s not looking like that will change anytime soon given the record demand we’re experiencing and limited number of homes for sale.
What shifts in demand is the real estate industry experiencing?
The demand for housing is the greatest we’ve ever seen in Jacksonville. The population is rapidly growing with more and more millennials becoming homeowners, contributing to an already crowded real estate market. At the same time, baby boomers are retiring and making the move to Florida. During 2020 Jacksonville’s net migration rate of people moving to the state was one of the highest on record adding to our increase in demand with an already limited supply. We’re building homes at a rate that is simply not keeping up with the number of people that want to buy a house. Builders are doing the best they can while dealing with labor force shortages and experiencing disruptions due to supply chain issues. We’re seeing multiple offers, and in some cases, homes being purchased sight unseen, which has not been normal for Jacksonville historically. The real estate sector is thriving and I anticipate consistent growth in the North Florida real estate market over the next 5+ years even if we see rates rise above current levels.
What are the effects of the rescue plans and new legislation on the industry?
The CARES Act allowed forbearance regardless of the situation. If you wanted it, you could take it. The people who needed assistance were able to take advantage of the deferred mortgage payments to help their families. Others simply took it because it was available, but they were unaware of the repercussions of forbearance. I don’t see the CARES Act becoming an issue as people can catch up with their payments or add extra time to their mortgage. Homeowners have benefited from a significant rise in home prices, which puts them in a better position than what we experienced in 2006-2008 as the vast majority have plenty of equity and aren’t under water on their properties.
Given the accelerated market, what are the chances of a real estate crash?
The average sale of a home in Jacksonville Jan. 2020 was $270,000 and today it’s $100,000 higher. I don’t think the city’s rise in pricing is a bubble as much as we’re catching up to where we should be due to the growth we’re experiencing. I think Jacksonville residential property values have reset to where we should have been 10 years ago and have gotten caught up to the rest of the state due to the pandemic and offerings the area has for the people that live here. Based on these factors I do not foresee a real estate bubble or crash.
Are there generational differences that must be tackled to attract new talent and customers?
As we are a company that hires out of college, we need to find ways to relate to a younger generation and understand the differences in interaction are due to social and contextual differences of each generation. Motivations can also vary from one generation to another. To get a better understanding of this phenomenon and the generational differences, we participated in a workshop through the Davis Leadership Coaching Program at Jacksonville University. We’re now better equipped to understand them, which allows us to scout talent at the university level. Each of our new team members goes through our internal training program, BOE University. BOE University is an online platform with live training conducted monthly for all new hires. The platform was created to mimic enrollment, prerequisite, class grade evaluation and graduation. BOE University is something we are very proud of and sets us apart in the industry. As for our clients, we participate in Florida Housing Finance Corporation programs and are the leading company in Northeast Florida that offers down payment and closing cost assistance for first time buyers and military veterans.
How will a potential rise in interest rates affect your operations?
We believe rates will increase over the course of the next year. Although rates will go up, we are not projecting them to skyrocket and have studied how rate increases in the past have affected our local market. A rise in long-term interest rates would not be a bad thing for our economy and previous increases have just slowed price increases locally given people’s strong desire to call Florida home. Raising rates is the only means the federal reserves have to counter inflation which is becoming more relevant. Our model is primarily built around purchases compared to others who only focus on refinances, so when rates go up, the purchase market remains available, and we will continue to commit to the dream of homeownership.
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***Bank of England is not affiliated with any government agency or Capital Analytics. Quinton Harris is not a loan originator. Bank of England Mortgage is a division of Bank of England. NMLS 418481. Member FDIC. Equal Housing Lender.
