Smaller mortgage companies will be impacted significantly by a downturn in the economy. These firms, in comparison to larger financial organizations, which may have multiple streams of income, are not as well-positioned to manage through a rocky economy.

Whereas larger organizations can typically rely on alternative sources of income, many smaller mortgage companies are heavily dependent on the sale of new home loans. This puts them in a much different position should a recession occur, as their mortgages may not be able to be sold or refinanced and their cash flow can quickly become compromised. As such, it is crucial that these firms take proactive strategies and manage their financials closely in order to continue to be successful during an economic downturn.

Key Elements:
• Smaller mortgage companies face risks during a downturn
• Impact more significant than larger financial organizations
• At risk of not being able to sell mortgages or refinance current mortgages
• Rely on proactive strategies and financial management to survive recession

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