The benefits of building a strong sales culture at your institution

by Loraine Catlett, SWBC LenderHUB

Economists are predicting loan activity to rise at a more modest pace in 2022 than we’ve seen in 2021. Blake Hastings, my colleague and former senior leader at the Federal Reserve Bank of Dallas, expects financial institutions to see the following lending patterns next year:

  • Mortgage loan growth was still very positive in Q3 2021 but is showing signs of slowing from its record pace. The combination of higher interest rates and home prices is starting to affect demand and will likely continue into 2022. We should be looking at more normal home lending activity heading into 2023.
  • Growth in commercial and industrial lending abated over Q3 and Q4 2021 but is expected to remain relatively healthy in 2022. We won’t see the strong growth in lending from this sector we saw in Q1 and Q2 2021.
  • Now that savings from stimulus checks and other benefits are beginning to deplete, we’re going to start seeing delinquencies start to rise again. This does not mean we’ll see terrible levels of delinquency, but the level will begin to normalize from the historic lows of 2021.

 

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