Why should lenders try to find a partner who has a view of the entire loan origination landscape, and how does it create more opportunity?
There will always be those who thrive in a crisis. You’ll find them in every industry, and they are typically out to sell a solution to a problem that has not yet, and may never, present itself. Over time, many of these doomsayers lose their influence, just like the Boy Who Cried Wolf in the children’s story.
With interest rates high, housing inventory low, Boomers staying put and fewer Millennials looking for that first home, lenders already know things could be healthier than the current state.
What they really want is a partner who can shed light on the situation and give them some good options about what to do next. We’ve been building a team to offer that insight here at Mortgage Cadence for some time.
Having a technology partner to count on is like having a powerful tool in their lender toolbox. It’s like a powerful arrow in the lender’s quiver. But this is a role that not all vendors are suited to play.
Lenders we’re having conversations with now are finding that going for advice to an AI or FinTech firm will give them only a very narrow view of the industry. That limits options at a time when they need every opportunity they can find.
Far better for the lender to find a partner who has a view of the entire loan origination landscape from the borrower’s initial experience all the way to closing the loan and handing it off to the servicer. From the lender conversations we’ve been having this year, this is what they are pursuing.
These circumstances put Mortgage Cadence in a good position. Lenders know that we have a view of the entire lending landscape and offer solutions that allow them to operate in any vertical, including wholesale, retail, forward, reverse and home equity.
Our secondary marketing tools allow lenders to manage their pools and our Services Center allows them to integrate with any partner they want and begin collaborating on loan origination in a single day. Our view from here is as good as it gets.
A partner with a broader view of your industry offers many benefits in any market, but when things are bad and crises loom is when the right partnerships really pay big dividends.
It helps, of course, if the central piece of technology the partner provides reduces costs, improves efficiency and allows the lender to remove expensive but redundant tools from its tech stack.
These are exactly the things lenders are looking for now and will mean the difference between success and failure if the economy goes into recession and the market tightens further.
Will that happen to our industry next year? That’s not clear yet. There are experts on both sides, some sending out encouragement while the others predict doom.
Leading lenders are preparing now for either eventuality. It means evaluating their current partners and tools, streamlining their existing workflows so they can do more with less, and, most importantly, finding the partners they can trust to help them navigate the uncertainty that stands between them and a successful 2023.
If you’re having these conversations now, we’d love to give you the benefit of our experience and view of the industry. If there are opportunities you can seize now, our team will see them and bring them to your attention. – is this too self-promoting?
The business is different than it was a year ago, but lenders who were prepared are not considering this a crisis. That could change for those who don’t prepare now for what’s coming next.
By Jim Rosen, EVP, Services at Mortgage Cadence
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