John Brodrick
As 2019 begins, there is ongoing speculation within the industry about the downsizing and consolidating of mortgage operations. The expectation of rising interest rates and continued competitive price pressure may bring new challenges in 2019.
As the incoming chair of the Massachusetts Mortgage Bankers Association (MMBA), I am privileged to work with, and advocate for, residential lending institutions across the commonwealth – talented organizations and people serving homebuyers and homeowners. The challenges facing the mortgage industry are ever changing, and the MMBA leadership is committed to providing timely and relevant ideas and exchanges for conversation as ongoing resources to our members. From my 30 years of experience in mortgage banking and 10 years as an active member of MMBA, I have learned that the mutual sharing of ideas and information between professional colleagues helps us all to grow and prosper.
As we look ahead to 2019, regardless of an organization’s efficiencies, we can expect they will likely be impacted by such issues as rising interest rates, high home prices, new regulations, increased cybersecurity requirements, artificial intelligence and advances in technology.
Whether closing 100 loans in January or 300 loans in June, fixed operational costs and overhead remain the same. Equally important, in order to be a lender of choice, steady performance – in such areas as speed of loan processing and high-quality customer service – and adherence to compliance must always be front of mind. Combining the cyclical nature of the mortgage business with an upcoming year where change is likely, lenders may face a range of challenging decisions.
Fortunately, there are steps mortgage lenders of all sizes can take to prepare. In my experience as an involved member of the MMBA, a former owner of a multistate mortgage company and – best of all – my position with Eastern Bank as mortgage banking director, I have often seen strategies for achieving success and navigating change developed as a result of focusing on high value-add and productive activities. Many of these strategies may be discovered, discussed and realized through the educational and networking opportunities available with membership in the MMBA.
As an example of such a strategy, in 2016 Eastern Bank engaged in a partnership with another large mortgage lender, Embrace Home Loans, to perform certain processing support services on our behalf. While we continue to use our highly skilled and professional loan officers, sales support, quality control and compliance teams, the partnership has created efficiencies by moving certain costs from fixed to variable. This allows us to provide the best of service to our mortgage customer, offer an expanded product mix and shorten the time from application to closing – all critical elements in today’s competitive home buying environment.
In addition, we have access to a fully developed suite of technologies – digital application, LOS, pipeline management, reporting suite, imaging – to ensure the bank’s loan officers, leaders and compliance staff are provided the most effective, highest-performing tools. As a result, the bank receives the benefit of emerging technologies without a capital investment.
Helen Keller once said, “Alone we can do so little; together we can do so much.”
Combining a bank’s resources – from loan officers and vendor management and compliance teams to senior leadership and a brand invested in its communities’ prosperity – with the resources of a skilled mortgage operations provider or another industry partner will create a team that is, simply put, greater than the sum of our parts.
As you consider how best to achieve your mortgage banking objectives in 2019, I offer the idea of strategizing holistically as something all of us in the industry might consider. I encourage you to be involved with the MMBA, which provides ongoing education and networking opportunities, and advocates on your behalf with legislators and regulators. Check out upcoming MMBA events and meetings at massmba.com. Let’s ensure 2019 is a year when together we are greater than the sum of our parts!
John Brodrick is the senior vice president of Eastern Bank and the incoming chair of the Massachusetts Mortgage Bankers Association.
