In the course of a mortgage originators business, few decisions are more important than selecting a Loan Origination System (LOS) system and vendor partner. In fact, there is a clear interdependence between operational performance and platform performance. Effective and well-thought out processes ensure a business is getting the full advantage of their platform while a powerful, automated system can alter business strategy, drive profitability and deliver operational efficiencies.
Current market conditions continue to make servicing loan portfolios a coin toss. Many originators strive to maintain control of loan servicing, since it reinforces branding and provides a first line of communication to customers for retention and refinancing. With today’s higher interest rates, however, refinancing has decreased and that has slowed down the normal portfolio attrition rates—with significant cost implications.
February 1, 2020 is the deadline to comply with URLA/1003 changes. While that deadline may seem far off in the distant future, we all know better. When a deadline for compliance is set, it usually seems reasonable…even far off. But then, one morning, you wake up and the deadline is tomorrow. This simply isn’t fun so let’s do our best to avoid this scenario by embracing a proactive mindset.
Have you considered becoming a Consultant, but are unsure if you posses the necessary skills, personality and/or character traits required to take the next steps required to advance your career in that direction? As a Mortgage Consultant for Consolidated Analytics’ Operational Excellence (OpExNow) Advisory Division, I have learned first-hand from Clients and experienced Project Managers the requirements and expectations for such a role.
According to the Mortgage Bankers Association, the average net cost to originate a mortgage (all loan types) in the fourth quarter 2018 was $8,611. Imagine, only six years earlier in 2013, the cost to originate a loan was closer to $5,000.