Independent mortgage bankers posted a net production loss of $118 per loan during 1Q18, the second time in four years that originating mortgages was a losing venture.
While that figure is based on the Mortgage Bankers Association’s quarterly performance report of nonbanks, the challenges behind it are felt throughout the industry.
Anemic loan volume has eviscerated the economies of scale that lenders rely on to keep costs in check. So even as production revenue is increasing, the per-loan cost to originate a mortgage was the highest it’s been in 10 years.
Thinning profit margins have many lenders giving the wholesale channel a closer look. And the influx of new wholesalers and brokers is making the channel more competitive, as mortgage professionals seek to lower costs and better manage operations.
This month’s cover story explores United Wholesale Mortgage and its CEO, Mat Ishbia. The Troy, Mich., lender was a mainstay in the wholesale channel throughout the mortgage crisis and remains steadfast in its efforts to work with brokers. Ishbia and UWM have become the poster child for a group of wholesalers that seek to gain a competitive edge by positioning themselves as brokers’ allies in unprecedented ways. Now, as the channel gets more competitive, UWM’s model is being tested by a host of new challenges and opportunities.
Shifting gears, we’re just two months away from the 2018 Digital Mortgage Conference. The technology transformation that’s sweeping the industry continues to rapidly bring new innovations to the market. And the premiere event exclusively dedicated to these developments is no different!
This year’s edition of our groundbreaking Digital Mortgage Conference will be bigger than ever and include a number of exciting new features. First off, we’re moving the festivities to the Cosmopolitan Las Vegas and the agenda has been expanded to two full days of content.
As always, the main attraction will be demonstrations of the latest digital mortgage advances. And with three tracks of sessions, there will be no shortage of opportunities to learn and engage with your peers, no matter where you are in your digital journey.
Attendees will also have the opportunity to participate in our new Engage Roundtables, a series of small breakout sessions that explore how digital mortgage technologies are helping tackle unique industry challenges.
Lastly, we’ll cap things off with an exclusive after party to toast the end of a successful event. For more details about the conference, visit: nationalmortgagenews.com/ confe rence/ digitalmortgage-2018
We hope you see you there!