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We all knew that those extremely low mortgage rates couldn’t go on indefinitely. The time has come for rates to rise but it appears they may not have such a devastating effect on the housing market. Although forecasts for 2017 and 2018 are being adjusted down, the decrease is not that substantial.
The good news is that we are heading back into a purchase market and there will still be plenty of opportunity for loans going forward. This is especially true if the economy continues to improve with more opportunity for employment and increased wages.
According to the most recent Fannie forecast, total originations for 2017 should be around $1.053 trillion, with 2018 projected to be a little higher at about $1.149 trillion. That’s still quite a few loans over the next two years, and by all accounts, things should only get better.
Lenders need to position themselves now to take full advantage of the new purchase market with products to service the needs of the prospective home buyers. With things getting better, we may, sooner than expected, see more Millennials entering the home buying market to take advantage of the relatively low rates while they last. All they need is a little push. Are you ready to service them?
The competition will be fierce and every loan will be count. Lenders need to be lean and mean, ready to hit the ground running to service Realtors, builders and buyers. It’ll be a little different than handling those refi’s. So, you should be looking at the areas where you can streamline operations and reduce costs. Do more loans for less.
Consider outsourcing certain business processes to cut fixed costs and maximize staff productivity. Allow LO’s to concentrate on new business and support staff concentrating on customer service to expedite approvals and loan closings. Leave the required pre and post-close reviews to us.
Allow LoanLogics to evaluate for you the benefits of outsourcing your QC functions to us, or to show you how you can improve internal audit efficiencies through the use of our LoanHD QC audit platform. Now’s the time to make the move so you can free up your staff to concentrate on what they do best, get new business and close more loans.
We’re changing from a refinance to a purchase market. You may need to make some changes in how you do your business to gain some efficiencies and economies of scale. Match variable income to variable expenses by reducing fixed staff expense and related overhead.
The game has changed. Time to play different.
