Survey: Competition, Compression and Rates Bedevil Mortgage Industry

Increased competition, margin compression and rising rates are the greatest challenges facing mortgage professionals, according to the newly published “The State of the Originations Industry” from Altisource Portfolio Solutions.

 

In a survey of 200 decision-makers within the industry, 29 percent of respondents said increased purchase business competition was the biggest challenge in today’s mortgage market, while 25 percent cited margin compression due to regulatory mandates and 24 percent complained about rising interest rates. When asked about the most promising market opportunity, the respondents pointed to construction loans (25 percent) and non-QM loans not including jumbo loans (20 percent).

 

“The survey uncovered many industry insights, including risks and challenges present in the market,” said Justin Vedder, Chief Operating Officer, Origination Solutions, Altisource. “The biggest challenge identified, with respect to the mortgage market, is the economic environment today and into the near future. With that said, originators can take certain steps to stay competitive. For example, consider outsourcing some or all fulfillment, closing and processing operations, join a peer network, continue to look for new talent while also focusing on the retention of top performers, add new loan programs but offload the risk and operational cost to a third-party and be bold with piloting programs that will generate higher margin revenue.”

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