The corporate necessity to place people in positions and locations where they are most needed has not diminished, and at times this requires transferring employees from lower cost-of-living areas to higher cost areas. In the past, employees were more willing to live with higher costs in exchange for the opportunities and benefits that came with their new position. However, over time, employee expectations have shifted. Now, companies that need to relocate talent into higher-cost locations find they must provide additional assistance to attract and incent employees to move.
The changes within the lending industry over the past few years have been well documented. Record numbers of foreclosure filings, mortgage delinquency rates and mortgage fraud have all contributed to the changed lending landscape we see today; a landscape that includes conservative underwriting practices, increased documentation requirements and property valuation procedures for each home purchase transaction. The impact can be felt with high-cost-area assistance programs as well, and what was once considered “best practice” is now not a clear cut solution.
This week, we will outline the positives and negatives of various employee-incentive solutions for high-cost areas over a series of posts throughout the week.
As the mortgage industry has adjusted to new underwriting standards, lenders and companies have the opportunity to revise their policies to ensure their home purchase program fits their goals. The right policy changes will help assure that transferees receive consistent and fair high-cost-area assistance. As always, SIRVA is committed to providing you with the most up-to-date information so you can make informed decisions and meet your mobility objectives.
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