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We were fortunate to host a content-packed webinar earlier this month with some leading voices in the mortgage industry. Moderated by Dustin Pfluger, our panel of Kevin Peranio, Jim Deitch, and Mark Wilson discussed key mortgage topics and reflected on the state of the industry in 2023, as well as provided insights into what to expect in 2024. If you missed it, here’s a summary of our discussion:

Key Points:

  • The current market continues to be constrained by factors such as housing inventory, interest rates, and affordability.
  • Lenders have had to adapt to a more consultative approach with consumers, focusing on providing value and solving problems. New products, such as non-QM loans and standalone second liens, offer opportunities for lenders to differentiate themselves and solve consumer challenges.
  • Mergers and acquisitions in the mortgage industry are driven by strategic considerations, such as acquiring new business lines or expanding market reach.
  • Successful deals are those that bring something unique to the table for both parties involved.
  • The cost of origination remains a challenge for lenders, with the need to contain and reduce costs still prominent. While some cost reductions have been made, further cuts are necessary to align with declining revenues.
  • Productivity variation between top performers, middle performers, and bottom performers is significant, indicating the need to rationalize the workforce for increased efficiency and reduced costs.

Opportunities in 2024:

  • Despite cost challenges, there are opportunities for lenders, including a potential turnaround in the spring purchase season and the expectation of a rate cut by the Federal Reserve in 2024.
  • The market may see a resurgence in demand for mortgages as a result of a potential rate cut, leading to increased business for lenders and a potential reduction in mortgage rates for consumers.
  • There is optimism for a positive impact on the industry as opportunities arise from the potential rate cut, increased demand for mortgages, and potential changes in economic conditions.

Our discussion was packed with additional insights from our experts, so we encourage you to listen to the recording here:

2023 Recap & 2024 Outlook: From a Lender’s Perspective