Industry
Mike Fratantoni, Chief Economist of the Mortgage Bankers Association just published this revised forecast for 2022:
A pretty brutal forecast for lenders coming off two great years. 2023 and 2024 are also forecast down 35% from 2021/2020. The world has clearly changed. So how do you build a resilient business model that remains profitable in 2022 and beyond?
First, we have to internalize that what worked in 2020 and 2021 isn’t going to work in 2022 and beyond. Margins will further compress. The industry has about 100,000 employees too many.
Second, decisive action is required right now to rapidly adopt a data driven business model to ensure profitability, liquidity and to manage risk.
Following are five critical steps to take right now:
Lenders must implement these five initiatives now, and repeat the effort monthly thereafter. Use Loan Vision and your LOS data to perform these initiatives every month.
Coheus from Teraverde offers you an out-of-the-box solution to perform all five of these initiatives quickly for Loan Vision and Encompass Users. Whether you perform the initiative manually or use a Coheus, you will be well rewarded in terms of future profitability for your efforts.
Coheus Loan Vision application loan officer profitability created actionable data out of the box.
James M. Deitch founded Teraverde® nine years ago, after serving as President and CEO of five federally chartered banks for over twenty-five years. Teraverde® now advises over 200 clients in mortgage banking, capital markets and financial technology, ranging from some of the largest U.S. financial institutions to independent mortgage bankers to community banks. Jim founded two national banks, including a top 50 national mortgage lender. Jim’s experience in residential mortgage banking for the last three decades on a retail, wholesale and correspondent basis led to an intense desire to learn about how technology could be applied to financial institutions. His experience includes multi-channel loan origination and sales management, mortgage product design, credit policy, hedging, securitization and loan servicing, and his beginning to end experience – and his love of high performance aircraft — has fueled his “need for speed” in applying technology to mortgage banking. He has served on the Mortgage Bankers Association Residential Board of Governors and served on CEO panelist and speaker for major financial institutions, financial industry associations, corporate clients, the Department of Defense and universities. Jim is a thought leader and has published numerous articles in the industry publications.
