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A Counterintuitive Growth Strategy - Scotsman Guide

A Counterintuitive Growth Strategy - Scotsman Guide
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There are a lot of topics being covered here at the MBA’s IMB conference. One of them is hedging, and if you want a primer on how lenders are protecting themselves from interest rate risk, here you go. Yesterday the MBA’s Marina Walsh observed what lenders are doing now to survive. In no order: reducing the cost of sales, revisiting existing office leases, taking advantage of predictive analytics, critically examining their business lines, ramping up new products or looking at geographic expansion, retaining servicing, further staffing adjustments, and reducing middle management. Take your pick, or do them all, but every lender is doing something as the days of raising margins to slow volume are long gone. In fact, many lenders who have retained servicing are selling it to maintain their cash flows, despite servicing income being a huge part of whatever profits were to be had in 2022. The mortgage servicing rights (MSR) market has opened 2023 with billions of dollars on t ....

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Here in Southern California for the California MBA’s Legal Issues and Regulatory Compliance Conference, the topics include RESPA, marketing services agreements and Section 8(a), and compliant low income and affordable housing lending. Speaking of which, Here’s a lousy headline to wake up to: “KeyBank Promised to Increase Low-Income Lending, Then Did the Opposite.” In other news lenders are watching, I don’t care if you don’t believe in climate change. And you don’t care whether or not I do. The point is, insurance companies, pension funds, private MI companies, and investors in mortgage-backed securities do, and the pricing and availability of mortgages, and insurance, in those areas is changing as well. Yet people are flocking to areas plagued by fire, hurricanes, and bed lice. (I threw that last one in to see if you were reading.) (Today’s podcast has an interview with Evergreen’s Robert Lipston on why now is the time for ....

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