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With nearly 30 years of mortgage lending experience but a fresh perspective as Inlanta’s new Third Party Originations (TPO) Manager, I continue to be amazed at the resilience of our trade. In the last 10 years the mortgage industry has seen more changes and faced more headwinds than many industries do in a lifetime, and yet we are on pace to originate nearly two trillion dollars in 2016, the first time since 2012.

More encouraging signs are on the horizon – a robust purchase market with average prices finally edging above pre-2007 levels and the first increase in Freddie/Fannie loan limits in 10 years! The agencies announced that limits on a single family loan rose from $417,000 to $424,100 effective January 1, 2017.   While not a huge increase, the new limits are helpful as conforming rates generally are lower than jumbo rates and underwriting more consistent and flexible so a few more transactions will get done. No announcement yet on the FHA/VA side, but we should hear something in the next couple weeks.

While we do face some rate uncertainty and volatility in 2017, it appears the market fundamentals are relatively sound for a solid year of growth. Take some time to consider how your organization is poised to participate in the 2017 mortgage market. Some questions you may want to mull over are:

  • Are there any gaps in your current mortgage product offerings?
  • Do you currently originate any government loans? FHA or VA?
  • If you are in or adjacent to more rural areas, do you originate USDA RD loans or are you familiar with the program?
  • How has your mortgage area been dealing with TRID and the current regulatory environment?
  • Do you feel comfortable that you are on top of the latest mortgage regs?
  • How much time do you now spend on mortgage compliance and regulatory issues?
  • Do you have plans to grow your mortgage volume/department in the near future?
  • How do you feel about the technology your institution is using in the mortgage department?
  • Do you have a handle on the actual profitability of your mortgage area?
  • Is your mortgage production easily scalable?
  • Is your institution looking for more direct fee income?

If the answers to these questions leave you with concerns, Inlanta  Mortgage’s TPO program can help by providing services to help you efficiently originate FHA, VA, USDA and Conventional mortgages without the back office expense or compliance worries.  Always glad to answer any questions, just email me at davestephan@inlanta.com.

 

Article by Dave Stephan, TPO Manager at Inlanta Mortgage