Blog post was written by Dave Stephan, Inlanta’s TPO Manager.
I’m pretty sure when Charles Darwin was kicking around the South Pacific in the HMS Beagle back in the 1830’s, he didn’t think someone was going to write about his theory of evolution and mortgage banking some 190 years later.
While there is much to learn from Darwin’s theory, we know this – If something doesn’t continue to evolve, it can fail to grow and flourish. At Inlanta, we’ve been building a theme for 2018 around evolution. We’re fortunate to be on the horizon of our twenty-fifth year in business and throughout that time, we’ve been witness to our own growth and evolution as well as the industry around us.
Twenty-five years ago, there was no real public internet, no email, no LP or DU, credit scores were barely in use, and fax machines were pretty much the height of technology. Paper 1003’s and verifications were the norm. Dot matrix printers noisily churned out closing docs and a 30-Year Fixed could be had at a cool 8%…
While evolution is necessary, it also serves a purpose– survival of the fittest. Countless ideas and companies have come and gone the way of the dodo bird in the last 25 years. Much like the catastrophe that wiped out the dinosaurs some 65 million years ago, the Great Recession was a meteor that changed the path of the mortgage industry forever. We saw the near extinction of the mortgage broker and wholesale lending, with large banks dominating the landscape.
But now, another twist. The regulatory fallout from the impact of the financial crisis has caused the largest banks to rack up approximately $138 billion in fines between 2010 and 2014 and, for the first time, non-bank originators are capturing more market share than their financial institution counterparts. For 2018 and beyond, rising rates will mean even less refi opportunity and fierce competition for purchase business.
So, back to the earlier idea that if something doesn’t continue to evolve, it can fail to grow and flourish. The question is, how has your institution’s mortgage lending program evolved? Inlanta’s Third Party Origination (TPO) program can help you take advantage of every mortgage opportunity, including FHA, VA, and USDA Rural Development and help you be a survivor in today’s competitive marketplace.