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Lenders are optimistic about the effects the Trump administration’s policies will have on their business, based on a survey conducted by Ebiquity, on behalf of the Lenders One Cooperative, of St Louis. That’s rare, some positive news about the new president.
Seventy-three percent of the 200 lenders surveyed feel this way. According to Bryan Binder, the CEO of Lenders One, despite some concern over the potential for rising interest rates, many lenders are optimistic about a more flexible regulatory environment going forward.
Interestingly, about 65% of those surveyed also noted they are already prepared to meet the new HMDA requirements for reporting additional data, beginning in 2018.
Some other interesting survey results included:
- 42% will be making investment in operational changes, i.e. staff and technology
- 25% will make their greatest investment in marketing
- 65% believe their cost per loan will increase as the result of new requirements
- 32% say that their biggest challenge is in the resources needed to gather, report, and analyze the new transactional data related to HMDA
- 61% of the respondents are utilizing e-Closings
Where do you stand on these issues?
- Are you now prepared for HMDA?
- Are you positioned to face the challenges of higher rates and shrinking loan volumes?
- Is your staff trained and ready for what comes next?
It seems the new administration’s policies may be beneficial to lenders. Although, market conditions, like rising rates, increasing home prices, and a shortage of affordable housing, will still pose some challenges for lenders. You need a plan on how you will compete in such a market.
Regulatory relief may help. But, it’s not the final answer. The proper use of technology to minimize staff and additional fixed expense, like office space, is critical to a lender’s success.
Social media, online applications, and marketing can sure help, when done right and properly targeted to maximize results.
Know your customers, know what they need, and then be prepared to provide them with the products and services they require.
Ironically, the new HMDA data can help when analyzed carefully to determine the lending done that proves to be most beneficial to consumers and profitable to the company.
It’s good to be optimistic – as long as you turn that optimism into a reality.
