TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/106030
take 5 M // What lending trends and market developments are you anticipating in the year ahead? BRANT // The origination market Going Beyond 'Good Enough' Appointed president of correspondent lending and loan servicing for Prospect Mortgage in November 2012, Amy Brandt is on a mission to "raise the bar" in the mortgage industry, and she's sharing her perspective on successful lending strategies and emerging risk management initiatives making a difference in the marketplace. 16 | The M Report remains robust, although still heavily fueled by refinance activity. The recently reported housing starts increases and generally improving pricing trend data are positive signs for the purchase mortgage market. As this trend strengthens, it will translate into purchase loan origination becoming an increasing portion of the market. The sooner this trend takes hold, the more positive it will be in terms of overall stability in the industry. The question for 2013 is whether the purchase market will continue to gain steam. M // Among the wide array of policy and regulatory concerns within the financial services industry, what issues are at the forefront for Prospect's correspondent lenders and servicers? BRANT // The overriding con- cern of most lenders and servicers in the marketplace is likely keeping up with the pace of regulatory change. Compliance has always been a top priority for Prospect. Given the shifting regulatory environment of the industry, not only do companies need to have an adaptable and robust compliance process and infrastructure, but they also need to make compliance a part of the core culture of the organization. That's the way we've approached it. M // As non-bank lenders make strategic changes in response to the shifting economic environment, what opportunities for growth are emerging? Conversely, what facets of the lending industry will face the greatest challenges in the nearterm? BRANT // The small/mid-market lender remains the most underserved in the industry. However, because of its high affinity with local markets (borrowers, real estate, and local conditions), it constitutes an area of high opportunity for lending during the course of 2013 and beyond. We have a strong belief in the strength of this lender base and will selectively serve it in areas and geographies that comport to the company's overall risk profile. M // How is Prospect maximizing risk-management practices, and what new tools for compliance are generating success in today's lending environment? BRANT // As a correspondent loan buyer, Prospect has embedded critical risk management techniques and systems into its operations. We believe that risk management starts with a quality, in-depth assessment of those we do business with. Hence, our correspondent approval and ongoing monitoring process is highly developed and is supplemented with a risk-based/weighted approach to how we look at products, transactions, and subchannels of delivery. M // How have your previous experiences with Vantium Capital and WMC Mortgage impacted the leadership methods you are utilizing to help your team and Prospect's correspondent organizations remain future-focused while operating in an unpredictable marketplace? BRANT // Previous experience has taught me that you must remain extremely vigilant and ready to adapt to change. To support excellence in the face of continual evolution, leaders in our business must build a strong culture that can deliver world-class customer service while successfully managing compliance, regulation, and credit quality. No one in the mortgage business should ever be comfortable that what they are doing is "good enough." Instead, we have to incorporate the invaluable lessons from the past into the current realities and strive for ways to constantly raise the bar. "No one in the mortgage business should ever be comfortable that what they are doing is 'good enough.'" —Amy Brandt, Prospect Mortgage