The Present and Future of The Mortgage Industry

We recognize the other people and organizations out here living the virtue of empowering people, employing a holistic approach to leadership, and lifting others collectively. And we respect how their efforts benefit the industry and consumers. We must bridge the gap for the next generation of collaborative, innovative mortgage industry professionals by promoting the value of education, support, and transparency.

The market is uncomfortable because where the cycle is now, the costs are being put on the consumer, and those are uncomfortable conversations to have. The direct-to-consumer loans will struggle during this part of the cycle, but here are some great angles to help recognize where to go from here.

Learning from Our History and Adapting

• The industry and the industry's culture have changed drastically since the early 2000s. There's no such thing as easy money now, so the culture has had to adapt. We can’t get stuck in Business as Usual operations.
• We must address pain points between the retail side and broker side.
• Home originators must rely on a relationship-driven model with referrals, branch managers, etc…
• A small business model can still bring the major volume. A purchase-focused model does well in refi markets, so when rates go up, they can hold on.

Predictions and Recommendations Based on Where We Are in This Cycle

• Direct-to-consumer is going to struggle during this part of the cycle.
• We must be wise to create the ability to pivot and have more options.
• Now is the time to get involved in organizations– opportunities are there for younger organizations to engage in national trade organizations.
• Talk to each other and align with the people you trust with a track record and reputation of trust.
• Build an infrastructure, lower costs, maintain tech/ leadership/training to withstand the cycle, and be positioned to scale up and take advantage of the next refi market.?
• Do the homework to be prepared for the shifts and look to the future.
• Build trust and confidence in the wholesale channel, so we assuage fears about operations.
• The companies with the biggest servicing platforms will withstand the storm the best.

How Organizations Can Move Forward with Focus

• Embrace the discomfort and accept that organizations will have a smaller piece of the pie but can strengthen the foundation of their business today to grow as they embrace the new approach.
• Getting the most isn’t always the best for teams or consumers.
• Look for hidden opportunities to build relationships in an evolved landscape.?
• Shore up leadership -? Build trust by focusing on a culture of respect and transparency. Investing in that culture and leadership must hold themselves accountable.
• Prioritize collaboration and confidence within the organization.

What’s good for the industry is always good for the consumer. Now is a good time to look at our competitors as collaborators. Our true competition is the best version of ourselves. It’s time to embrace the shifts created by the cycle and embrace collaboration across the industry if we want to be prepared for a positive future.