Four Reasons Why Outsourced Mortgage Fulfillment Warrants a Fresh Look

2020-08-03T19:15:03+00:00May 18th, 2019|

Even in the best of times, mortgages can be challenging for community lenders. Fannie Mae reduced its 2019 volume estimate, and the 2020 outlook isn’t much better. Average origination costs have hit a new high – $10,200 according to research by the Mortgage Bankers Association and Stratmor – squeezing margins even more. Factor in increased competition – and the added tech investment – from money-center banks and fintechs, and it’s safe to say we’re confronting some stiff headwinds. Recently, three mid-size banks examined their situations and concluded exiting the mortgage business was their best option . As one CEO summed it up: "We have been in the mortgage banking business for many years and have weathered unfavorable mortgage banking environments in the past. Unfortunately, the current poor operating environment is coupled with fundamental changes in the mortgage banking industry, such as more burdensome regulations, required investment in expensive technology, fierce competition,