Don’t Manage by Looking in the Rearview Mirror

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It’s important to learn from history. So, we can avoid making the same mistakes, while capitalizing on what we did right.

However, to remain successful, we can’t rest on what we did. We need to have a clear vision of what needs to be done in the future to stay successful.

It’s nice to know that profits for Independent Mortgage Lenders in 2016 were greater than what was earned in 2015. I’m pretty sure that those who earned the increased income were well aware of that as they progressed through the year.

However, it has already been reported that Independent Mortgage Lender’s income in the 4^th quarter of 2016 was well below that earned in the 3^rd quarter. The celebration for the income jump over 2015 was sure short lived.

The Chicago Cubs and their fans are happy they won the World Series last year, but now they’re concentrating on a repeat.

What was learned from last year’s run, and what do they need to do to stay on top? There’s no rest for the weary. As they say in the Artic, “…you gotta keep moving or you’ll freeze…”

It’s no different for mortgage lenders. You can’t keep moving forward while looking in the rearview mirror. Last year is over; good or bad, it’s gone.

Time to take what’s been learned and look to the future. What does 2017 and beyond have in store?

One thing we know is that lenders need to embrace technology to stay on top. Consumers want, and now expect, a digital mortgage experience with ease of application, processing, and closing. The less paper the better.

Unfortunately, although most lenders realize this, not all are moving quickly enough to have or get, the technology needed to stay in the game.

• Are you plodding along, happy that you made more money in 2016 than you did in 2015?
• Are you continuing to operate as you did to make that money during a robust refi market?
• Do you have a plan on how you’ll compete in a much more challenging purchase market?

It ain’t easy, but then again success never is.

Whether you develop it, buy it, or partner for it, you need technology to compete and survive in the new market.  You must have the capabilities to find, obtain, originate, close, and sell quality, compliant mortgage loans. That takes technology, training, and strong, reliable partnerships.

Make the adjustments to build on your strengths, while constantly improving your weaknesses. Look for solid lending and technology partners that will help.

With the right strategy, people, and processes you can compete, and maybe repeat, in 2017 and beyond.

Look how the New England Patriots continued to achieve by looking forward not backward.

About the Author

Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.