July 19, 2019
A bifurcation is taking place across financial services--those entrenched and those seeking to disrupt. Like a western where wagons are circled to form a defense, the weapons of financial innovation just make them easy targets now that they are all in proximity, behaving the same and resisting change.
In almost every statistics class, students will learn this odd fact: in many cities, there are two numbers that trend together: ice cream sales and violent crime rates. The rise in both figures, however, occurs during the hotter, summer months, and the heat is considered to be a contributing factor for both the increase in ice cream sales and the short tempers that contribute to spikes in violent crime.
According to our recent State of Third Party Risk Management survey, only 2% of respondents shared that third-party risk management reported to a line of business. I certainly breathed a sigh of relief. Still, I feel it's important to briefly discuss this and exactly why it's crucial that this trend continues across mortgage companies, amongst all sorts of companies across the industry.
The cost to originate a loan in the retail production channel (excludes third-party and consumer direct originations) averaged about $10,200 in 2018, based on a cross-section of 78 lenders, including mid-size and large banks and independent mortgage companies. But there are key differences among these lenders in terms of operating model, geography, product mix and sales strategy.
Independent mortgage banks and mortgage subsidiaries of chartered banks reported a net gain of $285 on each loan they originated in the first quarter, up from a reported loss of $200 per loan in the fourth quarter, the Mortgage Bankers Association reported.
In this MBANow video, MBA Chief Economist Mike Fratantoni discusses the updated MBA forecast; where the Federal Reserve is headed and where the economy is headed.
The Mortgage Bankers Association nominated Kristy Fercho, Executive Vice President and President of Mortgage with Flagstar Bank, Troy, Mich., to serve as MBA Vice Chairman for the 2020 membership year.
In the latest episode of mPower Moments, mPower Founder Marcia M. Davies talks with Janine Driver, New York Times best-selling author and body language expert, on body language tips; what she means when she says "check yourself before you wreck yourself," and "left for love, right for fight."
In this week's Washington Report, MBA Associate Vice President of Legislative and Political Affairs Dan Grattan discusses recent developments on Capitol Hill.
MBA Associate Vice President of Economic and Industry Forecasting Joel Kan breaks down the MBA Weekly Applications Survey for the week ending July 12.
We are in the midst of a Tech Blitz, a constant barrage of new technologies and applicability from long-familiar vendor names, as well as newer service providers in our space. Interestingly, many potential buyers are as uneasy as ever. Angst has shifted from having too few innovative tech options to now sifting through reams of demos, decks and due diligence tasks. Better off, yes--but angst remains.
A booming economy is creating a significant business opportunity for organizations that have well-run commercial lending operations. According to the Mortgage Bankers Association, commercial and multifamily mortgage originations will total $530 billion in 2019. This translates to more commercial construction lending activity. The problem is, institutions with outdated operations will find it challenging to keep up and compete with larger banks.
Today's Top Stories from MBA NewsLink: