The April 28 episode of the Outlook for mortgage leadership starring Robbie Chrisman, host, Chrisman Commentary Daily Mortgage News Podcast. Chrisman and series host Andrew Berman explored the technology lenders use today to win, what it will take for lenders to keep winning, new business models emerging in the industry, thriving in squeeze current margins and more.
Chrisman began her career in the mortgage industry with high school and college internships at Peoples National Bank in Colorado, RPM and Bay Equity in the San Francisco Bay Area. After graduating with a finance degree from the University of Texas at Austin in 2014, he went to work at SoFi, where he became Director of Capital Markets, helping to establish SoFi’s residential mortgage division before leaving. work for TMS in Austin. , Texas. From there he went to work for FinTech start-up Riivos in San Francisco, then for Mortgage Capital Trading in San Diego. He currently writes much of Chrisman Commentary’s daily email.
- Chrisman had strong words on the recent issues of squeezing margins in the industry. “Shame on you if you weren’t prepared for this. We knew this was coming and many of you who have been through market cycles before should know that the mortgage industry is arguably one of the most cyclical industries, ”he said.
- “No matter what industry you are in, whether you’re making burgers or making mortgages, you are focusing on three things; product, price and service. You can never have all three, so choose two. When it comes to mortgages, know what you’re good at, refine yourself on it. Ultimately it’s about putting borrowers in homes and if you sacrifice that for selfish means or whatever, your credentials are going to wither, you’re going to wither on the vine. It’s not going to be good. Ultimately, this is a sponsorship-based business. “
- “In my opinion on mortgage banks, there are basically four main channels. You have your direct contact to the consumer, retail, wholesale and your correspondent and it is about reducing your costs. You know people see the same prices when they sell a loan. This is what it really took for you to produce this loan in a compliant manner so as to create a quality product while minimizing your costs. “
- “One thing that is often overlooked is that a lot of these lenders have great technology. They have a good tech stack; they’re constantly sold on the latest biggest thing, but what they’ve got is pretty good. It’s really about training your employees to know what you have and how this tech stack plays with itself. “
- Chrisman predicts that over time, the speed and cost of closing will be more beneficial to the borrower.
- “We’re talking about these technologies and at some point they’re going to become ubiquitous in the industry and those that weren’t the first to adopt them or those that got stuck in their ways and said, ‘This has worked for me in a few market cycles since. ‘ The world is constantly changing and therefore being able to be flexible and adaptable to this, I believe, hopefully, a new standard is coming and hopefully that means less than 14 days of closing.
Check out the full conversation between Chrisman and Berman below.
Click here to watch the previous episode starring Robert Pieklo.
See all interviews from Mortgage Leadership Perspectives Series on his YouTube channel.