MORTGAGE ORIGINATION COSTS ARE SKYrocketing and lenders are struggling to make a profit, particularly as loan volume remains constricted by tight housing inventory and rising home prices.
But as this month’s cover story explains, it’s not enough for lenders to simply make blunt budget cuts to improve their thinning margins.
Instead, mortgage company executives are taking a closer look at new performance metrics to help them identify patterns and set goals for trimming costs from throughout their operations.
Lenders shared some of their most effective strategies they’re using right now in five key origination cost centers: compensation, marketing, facilities and equipment, cost of funds, and compliance.
This more nuanced approach often requires some upfront investment, but it also produces more meaningful efficiency gains that will continue to pay off for years to come and position lenders to be more competitive in a rapidly changing environment.
If you haven’t already, check out the National Mortgage News website for our collection of 2017 year in review content and our 2018 outlook series for a comprehensive analysis of what’s in store in the coming year.
Likewise, the 2018 Top Producers call for nominations will also be posted online, along with an overview of this year’s program and instructions for completing an online entry.
We reached a new record for entries last year and are looking forward to receiving even more submissions in 2018!