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Residential Department: From the Editor: October 2013

 

From the Editor

Time — and technology — wait for no one.

As the mortgage industry begins to embrace the digital age, change is in the air. The effects — and final rulings — of the Dodd-Frank Wall Street Reform and Consumer Protection Act are starting to take shape, and mortgage professionals must adjust their business accordingly. More and more consumers are looking to the Internet first for rates, lenders and homes. And interest rates continue to creep up, possibly signaling the end of the refinance boom and the beginnings of a purchase market.

In fact, according to this past second quarter’s Mortgage Bankers Performance Report from the Mortgage Bankers Association (MBA), the share of total originations by dollar volume from purchases increased to 52 percent from 40 percent this past first quarter. This marks the first time the purchase share was greater than 50 percent since third-quarter 2011. The report analyzes the performance of independent mortgage companies, bank subsidiaries and other non-depository institutions. The MBA estimates that the purchase share for the industry as a whole was 36 percent this past second quarter, an increase from 26 percent in first-quarter 2013.

As many mortgage brokers and originators look to adjust their product mix from refinances to purchases, DataQuick Title’s Rich Kuegler discusses how to prepare for the return of the purchase market. Transitioning from a refinance-driven market toward a purchase market may mean shifting your organizational mindset, retooling back-office processes and increasing sales efforts, Kuegler asserts. This may be a challenge, especially with today’s regulatory environment and the higher operational costs that often come with originating purchase loans. Read more on Page 40.

Associate editor Rania Oteify also takes a look at the return of the purchase market in this month’s BackSpace on Page 130. Originators must know who the buyers are — and will be — in today’s market, and a closer look at first-time homebuyers, those who are moving up the property ladder and investors is necessary to best position your business to succeed.

As the purchase market returns, mortgage originators will need to change how they operate and market their business. Today’s homebuyers are more technologically savvy than ever, and mortgage companies must recognize that and adjust accordingly. Mobile technology — from apps to websites — is taking an increasing share of the Internet market, and today’s consumers want information at their fingertips. Matt Hansen, founder and president of SimpleNexus, helps mortgage originators figure out how to juggle today’s technology successfully on Page 27.

Capsilon’s Sanjeev Malaney also analyzes the technological tools available for mortgage brokers and originators on Page 81. Cloud-based solutions are getting a lot of press, but what trends should you know about to make sure your business keeps up in a fast-changing market?

Although online portals are critical, maintaining the human touch is equally important, GSF Mortgage Corp.’s Chad Jampedro argues.Integrating the online world with personal communication is key — learn more about it on Page 48.

Whether you’re ready to charge into the purchase market or make the move into the online arena, Scotsman Guide has the information and tools to get you ready for the next phase of your business.


 

Jennifer Garrett was an editor at Scotsman Guide. For questions on this article, call (800) 297-6061 or e-mail articles@scotsmanguide.com.

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