Insights Report

Welcome to the October 2020 Insights Report


Lisa Springer
Sr. Partner, CEO

With Halloween just days away, I can’t help but wonder if the scariest costume a kid can wear this holiday is one without a mask. Back in March, did anyone really think that by trick-or-treat season we would still be encountering COVID-19 restrictions?

Despite the craziness of 2020, the mortgage market is booming, and digital technology has pushed forward to the benefit of borrowers and lenders alike. STRATMOR is also actively managing multiple M&A transactions as buyers and sellers take advantage of the upbeat market numbers.

In the lead article this month, senior partner Garth Graham (who’s birthday is on Halloween, by the way), outlines what lenders need to know about the current M&A environment in his article, “Timing is Everything: Four Must Know Realities About the Mortgage M&A Market.” In his typical story-telling style, Garth outlines the key elements, including how several recent transactions have changed the M&A environment and how much better the numbers are this year for buyers and sellers. It’s an insightful article that really puts an exclamation point on 2020 and sets the stage for 2021.

Also in this report, MortgageSAT director Mike Seminari highlights how originators should pursue their long-term growth goals in his article, “Originator’s Guide to Surviving Market Constriction.” Mike states that now is the time for originators to build on their current successes by investing in relationships, developing good habits and enhancing their personal brand. He also suggests steps originators can take to achieve these goals. This article is definitely worth sharing with the originators at your company.

Thank you for joining us this month, and lenders, if the timing is right for you, give your STRATMOR partner or principal a call. We’d be happy to help you determine your next best move.

 


In-Focus
Timing is Everything: Four Must Know Realities About the Mortgage M&A Market

By Garth Graham October 2020

This article contains technical details about mortgage mergers and acquisitions, including data, charts and details. But let’s start with a story.

Once upon a time, there was a mortgage company that was one of the top consumer direct originators to go public. The company was focused on a model that delivered more transparency to consumers, was built around a plethora of technology tools, and had ridden a wave of refinance volume to report strong growth. In the consumer direct channel, this company was the largest. The penultimate strategic move was for this company to rebrand themselves, change their name and launch a nationwide advertising campaign with the overarching goal to become a household name for consumers seeking a mortgage.

At this point, you might assume I am referring to the now well-known Quicken story and its successful IPO as Rocket Mortgage this past August. However, this story is more personal than that — in fact, my story is about Mortgage.com, a company that went public in August 1999, almost exactly 21 years before Quicken.  With a moniker like Mortgage.com in the dotcom storybook era, how could we miss?

So, while Dan Gilbert may be able to claim the most successful IPO in mortgage history, I can certainly claim to be the first dotcom IPO!  Although I did not cash out as he has, and I don’t own any sports teams and have not branched out to become the savior of a midwestern city, I have learned a lot in the process and have some personal observations and concerns to express about the mortgage IPO mania that is sweeping our industry. It’s a story about the absolute need to focus on the fundamental factors that drive success in mortgage banking. And these considerations are not always measured in the stock price.

Ultimately, it’s all about timing.

READ MORE


More Insights

October 2020
Strategies

Originator's Guide to Surviving Market Constriction

How can mortgage originators can insulate themselves from market constriction? By investing in their personal brand, relationships and in developing good habits.

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August 2020
STRATMOR Studies

STRATMOR Studies

STRATMOR Group offers a suite of data products and mortgage advisory service to power your performance–including industry-specific studies. Get the data driven advantage!

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