The start of a new year brings more than just hopeful resolutions and positive attitudes, but also many forecasts from economists, politicians and Wall Street analysts of what to expect in the mortgage industry in 2013.
Below I have put together my own list of 2013 forecasts. The difference of my thinking, verses those of others mentioned above, is that it comes from someone who is on the front lines working every day with third party originators, processors, underwriters, account executives and investors to help borrowers find the right mortgage solution.
- HARP 3.0 will come to fruition allowing millions more homeowners to benefit from refinancing and allowing the refinance-focus of the industry to continue for another year.
- Preferred Vendor Relationships will become the norm in the industry as lenders seek to maintain quality standards throughout the lending process. The fact is that lenders cannot expose themselves to risks caused by vendors who fail to abide by the highest standards. In response to this, many, if not most, lenders will be requiring the use of approved or preferred vendors for such things as title services.
- The Wholesale Channel will continue to reclaim market share lost in the aftermath of the mortgage meltdown and housing crash as quality origination will combine with maximized consumer choice and professional flexibility. Wholesale lending through high-integrity, experienced brokers has always provided the best option for consumers. This reality is unaffected by the advent of the new mortgage industry (NMI). In fact, due to the proximity of the customer and the intimacy of the relationship between broker and customer, and broker and wholesale mortgage company, it is reasonable to assume that wholesale lending will produce the highest quality loans in the future. As recent market-share data clearly show, wholesale mortgage banking is on the ascendency. This will continue, in my view, until the channel reclaims a 33% to 50% share of the overall mortgage loan origination market.
While trends are difficult to predict exactly, we do know that only time will truly tell what 2013 has in store for
the mortgage business.