RISMedia's Real Estate Magazine

MAY 2016

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/668992

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Page 28 of 118

24 May 2016 RISMedia's REAL ESTATE Amidst these favorable economic fundamentals for mortgage bank- ing, there are regulatory implemen- tation and enforcement actions that are creating challenges for mort- gage bankers as they plan to cap- ture the upside of the 2016 mort- gage market. What growth strategies are avail- able to mortgage lenders that REAL- TORS® should be aware of in 2016? Branch Acquisition – This tactic leads to rapid acceleration of originations and borrower growth. Branch acqui- sition is also used for market en- try, or to expand a branch's lending footprint in target geographies. For example, Castle & Cooke Mortgage, LLC, an independent mortgage bank- er, part of Castle & Cooke, Inc., has already acquired three new branches in three different locations since the beginning of 2016. When a branch is sold, the acquiring mortgage frm has to transfer the employment re- cords of the MLOs within the NMLS. This process is usually seamless, and shouldn't affect the real estate agent/mortgage banker relationship. Horizontal Merger between Mortgage Banking Firms – One example from 2015 is the merger between two non-bank lender peers: LoanDepot acquiring Mortgage Master after ac- quiring iMortgage, Round Point Mort- gage and a few other lenders in the previous two years. While mergers can go smoothly, REALTORS® may fnd a varying degree of delays when communicating with the new corpo- rate structure of their preferred mort- gage lenders. Emerging Mortgage Trends and Their Impact on Your Brokerage Business by Dave Garland I n 2015, purchase mortgage originations were estimated around $900 billion 1 , or 14 percent higher than purchase mortgage originations in 2014. This year, $998 billion in purchase mortgage originations are expected, a number that's predicted to steadily grow and surpass $1 trillion in 2017. At the same time, the U.S. economy is expected to grow 2.2 percent, the unemployment rate will hover around 4.8 percent, and the 30-year fxed mortgage rate will stay relatively low—between 3.7 and 4.1 percent. In addition, housing sales are strong, and the Mortgage Bankers Association forecasts housing starts around 1,233,000 in 2016.

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