In a more difficult mortgage market, it seems that old, potentially disastrous strategies are surfacing once again. With the decline of refinance lending, lenders are loosening underwriting conditions, relaxing credit guidelines and adding higher-risk credit products. It seems that every day, I’m receiving ads for 100% lending in my inbox. I am also seeing lenders […]
The Case for Changing How We Measure LO Performance Read More »
The hottest question at the executive level is “When will lenders change their compensation packages for originators?” I’ve heard managers say that if someone will be the first to do it, they will follow but the reality is that no one wants to take the lead on this issue. If compensation metrics don’t change, more
The Oracle of Omaha has Spoken Read More »
At its annual conference, the MBA released more distressing stats for mortgage retail origination. Last week, I discussed the fact that 60% of originators are not productive. This week, I am discussing data concerning profitability. According to the MBA, the retail business line is generating only 8.5 bps in profitability per loan. Other business lines did
Retail Apocalypse Part 2: The Grim Reality of 8.5 BPS Per Retail Loan Read More »
A recent Stratmor survey revealed that the primary growth strategy of lenders, especially independent mortgage bankers, is stealing market share from other lenders through branch acquisitions. No question that mortgage bankers have committed to this approach. Firms such as Stearns, Caliber, Guaranteed Rate and others have certainly climbed the leaderboard in market share. The critical
Why Market Share Strategies Fail Read More »
