When our family contemplates change, we sit down together and create a pros and cons matrix. Case in point, my son Jesse was trying to decide between becoming a personal trainer or a physical therapist. We started with the basic strategy concepts: What is his purpose? What are his life goals? List five things that are most important to him — work-life balance, freedom to travel, income, etc. — and then prioritize them. Then rate the priorities on a scale of 1 to 5 for each life goal and determine which path best fits his purpose and his goals. He is now a very successful personal trainer who helps others achieve their fitness goals, is free to travel, and so on. Personal or professional, when faced with a big decision, weigh your priorities carefully.
In this month’s InFocus article, Senior Partner Jim Cameron offers insight into the wholesale channel. With his trademark attention to detail, Jim analyzes the trends and provides specifics to lenders considering expansion into wholesale. He also provides information to those loan originators who might be considering which model is best for them — a distributed retail branch model, a consumer direct (CD) model, or maybe becoming a broker. It’s a studied look at wholesale with data analysis only from STRATMOR. Don’t miss, “Thinking About Wholesale? Considerations for Mortgage Originators and Lenders.”
Customer Experience Director Mike Seminari outlines the importance of creating strong relationships with brokers in his May article, “Drive More Revenue by Rethinking Your Mortgage Broker Relationships.” Lenders, Mike points out that if you’re in the wholesale space, your rate sheet may be feeding short-term sales, but your relationships with mortgage broker partners will ultimately determine your long-term success. Check out his article in which he offers strategies that can be implemented now to strengthen the lender-broker relationship and create stronger, synergistic partnerships that drive more revenue.
Thank you for joining us this month. If you need help developing your mortgage banking strategy, including channel selection and focus, STRATMOR can help. Take advantage of our deep expertise in mortgage banking and contact your partner or principal or email me for assistance today.
It is no secret that mortgage industry volumes and profits are under extreme duress. Mortgage originators are scrambling to generate new business as demand for refinances has dropped dramatically, and purchase volumes are down due to a lack of inventory and ongoing affordability issues. In addition to scrambling for volume, loan originators must decide on the best model for them. Should they be a loan officer in a distributed retail branch model? Pivot to a lower-cost consumer direct (CD) model or consider opening their own branch? Or does it make sense to become a mortgage broker? Under which model can they best serve their customers and optimize earnings in this cycle?
Meanwhile, lenders in search of additional revenue and cash flows may consider entering the wholesale channel. The idea of increasing variable costs and reducing fixed costs in this market is very appealing. In this article, we will cover what drives loan originators and their decision to operate under the broker wholesale model, and we will also touch on key factors that lenders should think about when considering expanding into the wholesale channel.
For mortgage lenders in the Wholesale space, the rate sheet may feed short-term sales, but relationships with broker partners will ultimately determine long-term success. Discover strategies to strengthen the lender-broker relationship and create partnerships that drive more revenue.
STRATMOR Group offers data products and mortgage advisory services to power your performance, including industry-specific studies. Get the data driven advantage!
It’s quite true — as down cycles go this is a bad one. But it’s not all doom and gloom — there is some light at the end of the tunnel and there are some positive aspects to this cycle.
In the industry’s current environment, lenders are faced with making tough decisions in their efforts to “right the ship.” STRATMOR offer insight into factors lenders should consider.
In this article STRATMOR provides some strategic advice for lenders who are ready to learn more about the process or are ready to contemplate, evaluate or even pursue an exit strategy.
Many mortgage lenders have been slow to take up home equity lending. Why? STRATMOR analyzes the home equity lending market and suggest strategies for lenders considering this opportunity.
Secret shopping is the best way for lenders to remove the disconnection between perception and reality and pave the way for meaningful improvements in customer experience.
When mortgage lending intersects with wealth management, developing trust is key to working with private bankers, wealth managers and their high-net-worth borrowers.
Feel free to reach out with any questions or needs we might be able to help with.
