Guy Williams | Mortgages
President and CEO Gulf Coast Bank & Trust
One of the co-founders of Gulf Coast Bank & Trust in 1990, Guy Williams has served as president and CEO for the past 25 years. When not leading his own institution, Williams has provided leadership in the banking industry as well, serving as president of the Louisiana Bankers Association and on the board of directors of the American Banking Association. He has also brought his time and talents to the boards of Habitat for Humanity, the Louisiana Housing Corporation, the Finance Authority of New Orleans, Pilots for Patients, Crossroads Louisiana, Community Sailing of New Orleans and Baptist Health Ministries.
Do you think Brexit will affect mortgage rates in the U.S.?
Brexit will probably have very little effect on U.S. markets but may, if it slows the European recovery, delay the Fed’s increase in U.S. rates. There is also a good chance that Theresa May, the English prime minister, will handle the transition well and Britain will emerge stronger with a more business friendly economy than continental Europe.
How do you see the future of interest rates in New Orleans and the Southeast Louisiana region?
We expect at least one increase in short term rates before year end. This will affect the prime rate by one-quarter of one percent and may slightly increase short-term consumer yields. Long-term rates will probably drift higher, but very slowly, unless the economy really begins to grow rapidly. Unfortunately, most economists don’t expect rapid growth until 2017, or even 2018, and the more pessimistic economists expect slow growth to be the new normal. We disagree, and expect 3 percent growth to return in the summer of 2017.
How has additional regulation affected the mortgage market overall?
The Consumer Financial Protection Bureau (CFPB) has hurt consumers. Because of the new CFPB regulations, all mortgages are now more expensive to close and take longer. Unfortunately, Congress set up CFPB to be unaccountable so there is nothing we, or our customers, can do to correct them. It is also more difficult for many of our typical Louisiana borrowers to get home loans; this includes people who are paid in cash, such as musicians, service workers, and fishermen. It is also now harder for folks who have a spotty employment history or several part time jobs to qualify — an unfortunate example of Congress empowering an agency to hurt the poor.
