Ed­i­tor’s Note

National Mortgage News - - Contents - Austin Kil­gore Ed­i­tor in Chief

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!

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