I am very happy that my life is perfect. Isn’t yours? When I order scrambled eggs at the diner, the waitress says, “Perfect.” When I pay with a credit card at the car wash, the attendant replies with, “Perfect.” I tell the dry cleaner I’d like my shirts not wrapped in plastic. “Perfect.” Watch out for those “perfects” out there. One thing that was definitely not perfect was the ending of 2022 for residential lenders and their vendors. Just because the calendar turned a day or two doesn’t mean rates have done much, nor margins, nor revenue. Ready for a repeat of the 4th quarter of 2022 in the 1st quarter of 2023? Have vendors and lenders made the necessary cuts, in sales and operations, to keep pace with industry volumes being down 50 percent from a few years ago? How’s your “tech spend” as you enter 2023? (Let’s ask Southwest Airlines how its low tech spend worked out. Speaking of Southwest, thinking about switching and using Spirit Airlines instead? This comedian has some thoughts on that!) Vendors and lenders are competing for the business and trying to stay positive, but some are throwing hands in the air and “hoping” to make it. “Hope” has never been a great strategy, and investors are seeing a number of their clients leave their delegated UW status, and become brokers or Non Delegated correspondents. Change is constant. (Today’s podcast is sponsored by MCT and its Hedge Advisory. Comprehensive capital markets software and services that empower secondary marketing performance! Today’s features an interview with David Battany of Guild Mortgage on current trends in the capital markets and some of the new programs his company has rolled out to drive origination.)

Published On: January 3, 2023 / Categories: Mortgage News /