Stonegate Mortgage not only overcame the challenging market conditions during the second half of 2013 but also posted a strong increase in originations and its servicing portfolio due to several strategic acquisitions.
Ally Financial officially exited the mortgage business by the end of 2013 but not without incurring significant losses. Ally recorded a net income of $104 million for the fourth quarter of 2013, a giant drop down from a net income of $1.4 billion for the fourth quarter of 2012.
The mortgage industry is leveraging technology like never before, streamlining processes across the spectrum of lending, servicing, investing and real estate. The combination of regulatory pressure and consumer expectations have set a high standard for efficiency and transparency, requiring a significant investment of time, money and talent to hit the right notes for both.
Ironically, the monkey on the mortgage industry’s back for the past 10 years — increasing regulation — is the very thing that forced companies to find efficiencies in every part of the process, which serves them well as they look to engage tech-savvy consumers. Even as the enforcement of some of those regulations is now in question, the long-lasting benefits of investing in automation will stand.
Mortgage banks have traditionally been slow to embrace new technologies, and while the technology that has improved efficiency, security and customer experience in a multitude of other industries (transportation, education and retail, to name a few) is finding its way into the loan production process, a lot of opportunity still exists in other stages of the mortgage life cycle.