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Saturday, July 20, 2019
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Customer Retention: How to Become Their Lender for Life

Consumer lending competition is heating up, triggering lenders to remain vigilant at the threat of existing borrowers reaching the end of their initial introductory period. Like serial credit card customers who jump from one interest-free offer to the next, borrowers are more likely to consider refinancing options whenever their existing mortgage deal reverts to a standard rate, particularly amid a mortgage price war. Surprisingly, the lending business has some of the worst customer retention rates of any business and most lending companies fail to retain 93 percent of their customers when they decide to get a new mortgage.

July 19, 2019

July 15, 2019
By Mark P. Dangelo
Innovation in Finance--'Please Don't be Dead'

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.

Topics:
Mark Dangelo
Technology
Innovation
July 15, 2019
By Britt Faircloth
Brain Freeze: Ice Cream, Artificial Intelligence and The Spurious Correlation Conundrum for Lenders

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.

Topics:
Britt Faircloth
Wolters Kluwer
Artificial Intelligence
July 15, 2019
Third-Party Risk Management Structuring--Importance of Independence from the Lines of Business

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.

Topics:
Branan Cooper
Venminder
Third-Party Risk Management
July 19, 2019
By MBA Research & Economics
MBA Chart of the Week: Components of Cost to Originate in Retail Production Channel

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.

Topics:
MBA Chart of the Week
MBA/STRATMOR Peer Group Roundtables
Retail Production
July 15, 2019
By MBA Insights Staff
Slideshow
Slideshow: MBA Mortgage Bankers Performance Report

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.

Topics:
Independent Mortgage Banks
Mortgage Bankers Performance Report
MBA
July 17, 2019
By MBA Insights Staff
Video

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.

Topics:
MBANow
Mike Fratantoni
Economy
July 16, 2019
By MBA Insights Staff
People in the News

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.

Topics:
People
July 10, 2019
By MBA Insights Staff
Video

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."

Topics:
mPower Moments
Janine Driver
Body Language
July 16, 2019
By MBA Insights Staff
Video

In this week's Washington Report, MBA Associate Vice President of Legislative and Political Affairs Dan Grattan discusses recent developments on Capitol Hill.

Topics:
MBA Washington Update
July 17, 2019
By MBA Insights Staff
Video

MBA Associate Vice President of Economic and Industry Forecasting Joel Kan breaks down the MBA Weekly Applications Survey for the week ending July 12.

Topics:
MBA Weekly Applications Survey
July 8, 2019
By Scott Roller
Mortgage Vendor News & Views--July

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.

Topics:
Scott Roller
VendorSurf
Technology
July 8, 2019
By Frank McCracken
What Lenders Need to Compete in Today's Commercial Construction Boom

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.

Topics:
Frank McCracken
Commercial Construction
Technology
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