One more for the Worry List: How high will costs go?
There’s another item on my list that may not (directly) be making headlines, but it’s in the news and the industry board rooms every day. Right or wrong, good or bad, the increased oversight and regulation of the mortgage industry will mean increased costs. Increased costs (especially where rates and prices are impacted so heavily by factors beyond the control of most mortgage lenders) usually mean worse operating margins. Compressed margins mean…well, you get my point.
My hope for the next few years is that mortgage bankers prove to be the resilient and creative businesspeople they’ve been in the past. I’m not encouraging creative ways around the new regulations, but rather, means of compliance that don’t crush the margin. Perhaps that involves technology. Perhaps that involves new business alliances and models. Whatever the case, innovation will be a necessity for the mortgage industry.