Mortgage across America. Notes from the road.

I spent most of the past few weeks on both coasts meeting with people from all sectors of the mortgage industry.  A few observations from my travels:

• More consolidation is coming. There's a constant buzz in the air that lenders and businesses that support lenders are continuing to look for opportunities in the changing mortgage landscape. More deals are coming.  Some will be expected, some will come out of left field. 
• Contrary to popular belief, the call center model is not dead; but it is changing. The direct to consumer and call center model is adapting to higher interest rates.  Companies like Quicken and Loan Depot are finding creative ways to allow the traditionally refinance-heavy consumer direct model to disrupt the purchase and HELOC channels. LD's Mello and Quicken's Rocket Mortgage are integrating the home buying process with their loan originators as a one-stop shop for the home buying process.  
• Non-QM, Non-QM, and more Non-QM. Although Non-QM reportedly makes up only 3% of the current mortgage market, that number is primed to grow substantially in the near future. There seems to be an abundance of product offerings for borrowers who aren't eligible for Qualified Mortgages.
• Technology is the future. As expected, every lender is looking for ways to leverage technology to close more loans faster, more efficiently, and at a lower cost. Margin compression is effecting every lender that I spoke with, and each was interested in knowing what we, as a vendor partner are able to do to help them reduce costs and help reduce turn times.

Stay tuned, more changes to come!

JT