The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

Inside Look: RealTrends 2021 Brokerage Compensation Study

Steve Murray, senior advisor to RealTrends, gives an exclusive first look at the 2021 RealTrends Brokerage Compensation Report.

Logan Mohtashami on trends in forbearance exits

In this episode of HousingWire Daily, Logan Mohtashami discusses several hot topics in the housing market, including recent trends in forbearance exits and future homebuyer demand in the midst of inventory shortages.

How lenders can prepare for increasing regulatory pressures

As compliance becomes an increased focal point for mortgage lenders and investors, staying ahead of state and federal regulations can be the difference between a flourishing business and one mired in fines.

MortgagePolitics & Money

Mergers and acquisitions to surge in 2019

Too many lenders chasing too few borrowers

Mergers and acquisitions activity picked up significantly in 2018, a trend that is expected to continue into 2019 as the lending environment grows even more difficult.

As the lending market turns toward a down cycle, mergers and acquisitions are set to heat up, according to STRATMOR Group Senior Partner Jim Cameron.

“Lenders who are well-capitalized and well-run have an opportunity to be ‘consolidators,’ even while struggling lenders face the prospect of becoming reluctant – if not involuntary – ‘consolidatees,’” Cameron said in the company’s December 2018 Insights report.

There were a total of 11 deals announced in 2016, but that quickly sped up, rising to 28 transactions by November 2018, and more expected to come by the end of the year, according to the report.

“These are tough times in the mortgage business,” Cameron said. “There are too many lenders chasing too few borrowers, and because rates are not expected to decline any time soon, there won't be a refi rally to bail out lenders. We are experiencing an intense period of industry consolidation that will extend well into 2019.”

“One popular school of thought is that rapid consolidation will continue throughout Q1 and into Q2 2019 and that margins may normalize in the late spring and summer next year,” he said. “But we can't count on this. A lack of meaningful growth in the purchase market may delay the recovery period for the industry well beyond next summer.”

Cameron explained that today’s lending conditions are as challenging as they have been since the last recession, however, there are still strategies lenders can take to stay on top during this difficult season.

He explained some of these other options include optimizing cash from operations, raising equity capital and becoming a broker.

A recent analysis from HousingWire shows that one type of lender is doing fine, even excelling, as others continue to eliminate hundreds of mortgage jobs – mortgage brokers.

United Wholesale Mortgage recently announced it saw a 52% annual increase in volume in the third quarter. This increase was significant, especially when numbers from Inside Mortgage Finance show the majority of lenders saw either negative growth or growth less than 10% in 2018.

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