"But that may not be the most significant risk lenders face as URLA’s changes begin to go into effect in a few months. The biggest impact is likely to involve trust issues with mortgage borrowers."
"Just a small increase in Productivity yields significant increases in profitability."
We expect this change to be more significant for the industry overall than TRID. Those that don’t take this change seriously may learn that truth the hard way. Are you ready?
"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."
"One thing we all know is the cost of making a mortgage has never been higher. We’ve watched it more than double over the last ten years. At the same time, productivity, the closest performance indicator cousin to cost-to-close, has never been lower."
"This is critical for lenders who want to grow their businesses this year because the battle for borrower share is a zero-sum game."
"It also offers evidence of the high cost of complying with the numerous complex regulations our industry is subject to today."
"Some of the lenders that have participated in our study since the beginning have improved their performance every year."
"When lenders spend resources to get borrowers to prequalify but then do not follow up in order to get the deal once the borrower finds a home, they are leaving money on the table."
Every moment someone in the lender’s shop is working on the deal the company is accruing costs. The longer it takes, the higher the cost-to-close and the lower the profit the lender will receive from the deal.
"You'll only make the mortgage if you reach your member at the opportune time."
"A single technology platform stores all relevant loan and borrower data in the same way and in the same place, simplifying audit trails and compliance reporting. This alone has been reason enough for many lenders to put all real estate lending on the same platform."
Matt Hydrew, EVP Sales
With a true SaaS option, new updates are automatically applied to lenders’ technology. There’s less involved on the lender side to ‘take’ the upgrade.
More than 50% of your Cost-to-Close is labor, so monitoring this metric helps management focus their attention on those activities that are affecting production and dragging down profitability.
