The mortgage origination industry continues to face increased pressure through rising interest rates, decreasing production volume, inventory shortage, and process inefficiencies. Though profitability and production expenses vary from quarter to quarter, an overall trend of declining production income has been observed over the past three years – with Q4 of 2018 posting the lowest production income in three years at $-200.
Leading lenders are combating this challenging environment by focusing efforts and capital in areas that can effectively reduce noncompliance risk and drive profitability.
Where should lenders focus decision-making and capital planning in 2019 and beyond?
Additional contributors: Moravia Henry, Siwen Tang, and Brian Karp.