As a mortgage lender, managing risk is a vital step in safeguarding your profits. In addition to mortgage fraud, loan buybacks, and regulatory compliance, you also have to protect your business from early payoff (EPO) penalties. Since mortgage rates have been elevated for the past few years, EPO penalties haven’t been a top concern. However, as rates begin to decline, … Read More
As a mortgage lender, your loan origination costs have a direct impact on your profitability. Unfortunately, these costs have been on the rise for some time. According to Freddie Mac, average origination costs increased by 35% over the past three years, leading lenders to report an average net loss of $645 per loan in Q1 of 2024. So, what’s driving … Read More
With the new year approaching, mortgage professionals and homebuyers alike are eager to see what 2025 has in store for the real estate market. After all, 2024 didn’t deliver the market improvements many had hoped for. For several years now, the real estate market has been stifled by persistent inflation, stubbornly high mortgage rates, and other subpar market conditions. So, … Read More
Today’s mortgage lenders are grappling with significant challenges. Not only is the cost of origination on the rise, but the ever-present risk of Fannie Mae and Freddie Mac repurchase demands is adding to the pressure. Fortunately, you can reduce your lending costs and mitigate your risk of repurchase demands by employing automated verifications of income and employment (VOE). Automation can … Read More
Over the past three years, the cost of living has increased substantially. Prices rose by 9.1% in 2022, 3.3% in 2023, and 3% in 2024. Just like American consumers, mortgage lenders are facing a cost crisis of their own. As of 2023, the average cost per loan was nearly $12,500. As loan origination costs rise, lenders’ profits are dwindling. During … Read More
2024 has been a defining year for the mortgage industry. While it began with many of the same challenges as 2023 – high mortgage rates, prohibitory housing prices, and limited inventory – it also ushered in key changes, including two interest rate cuts, several regulatory shifts, and a presidential election. As the year comes to a close, many mortgage professionals … Read More
