One of the more interesting results that came out of our 2018 Mortgage Cadence Benchmark Study — which is available to download now on our website — was that high performance lenders have a distinct advantage over those with higher cost-to-close.
We wrote about this recently in an article entitled, “Taking the Guesswork Out of Lending Performance.”
It turns out that poor lending performance seriously reduces the lender’s ability to offer competitive interest rates.
This may strike you as odd, as in the past few years rates hit their lowest levels since 1946. They remain historically low. But the truth is that as the cost-to-close increases, mortgage rates rise because these costs have nowhere else to go, and nowhere else to hide.
Every $1,000 saved in production costs could be used to decrease rates by as much as 10 basis points. This constitutes a fantastic competitive advantage to the lender who understands how to achieve a low cost-to-close.
To see all the results of our recent study download our new white paper today.