Bold Banking Predictions for 2015

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For its slideshow feature Bold Banking Predictions for 2015, American Banker reached out to industry experts for their short takes on the trends we should expect to see in the year ahead. STRATMOR’s own Garth Graham was among those approached to comment.

Garth’s trend: expect mortgage lenders to get smarter this year.

“Over the last several years, regulators have taken a very active role in the mortgage industry, forcing lenders to commit resources to be compliant with changing regulations and to be more focused on risk management. This resulted in conservative underwriting standards, and difficulty for some borrower segments to get financing. Yet at the same time, free government money made low rates the norm, and high revenue per loan possible for many lenders. In 2015, the pendulum will swing back, as easy refi business wanes. Lenders hungry for volume will begin to change their criteria to attract more business. This will help banks that are thoughtful and analytic about mortgage underwriting to attract new customers and write more ‘make sense’ mortgage loans.”

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