AS LAST YEAR'S REFINANCE MARKET BECOMES A DISTANT MEMORY, A BIG CHUNK OF origination volume has disappeared. What can mortgage lenders do to fill the gap? Maybe the better question is, what old mistakes should they avoid?
Some lenders were very diligent about keeping their origination staff focused on purchase business all throughout the lengthy refi boom. This is paying off now in spades. Purchase business is defying forecasters with its remarkable resilience.
As this issue goes to print, new-home sales in March climbed by 12.2 percent to a record high 1.431 million units. January and February new-home sales were also revised upward by a total of 106,000 units, providing the latest evidence that higher rates have yet to put a crimp in the torrid pace of home sales. Greenwich Capital Markets Sales/Trading Desk, in commenting on the March home sales numbers, noted there is a chance that new-home sales will show a decline when April's numbers are released, or there could be a downward revision of this March number. But the Greenwich Capital analyst wrote, "Still, an April pullback (or a march revision) in this notoriously volatile series would likely leave the selling pace at an extremely elevated level, with solid job growth and accompanying income gains continuing to underpin demand for new homes."
This month's issue focuses on what lenders are doing to train and motivate their originators...