TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/113472
take 5 Lending a Higher Level of Service Promoted to president of United Shore Financial Services, LLC, in January, Mat Ishbia captured the industry's attention for his emergence as a market leader and his accomplishments while at the helm of the organization's lending subsidiary, United Wholesale Mortgage (UWM). Under Ishbia's guidance, the company's wholesale mortgage business set a record pace for growth, and though a commitment to traditional difference makers—like integrity and quality—have served him well, Ishbia's success story hinges on his fanatical attention to better, bolder service strategies. M // Nationally, what lending trends both positive and negative are you observing in the mortgage marketplace? ISHBIA // At this point, one of the major trends in the marketplace is serving clients both from a wholesale perspective and an originator's perspective. The industry has been tarred with negativity from the subprime collapse and the public's perception that it is very difficult and cumbersome to get a loan. This negativity surrounding our industry has deterred many consumers from refinancing their mortgage or from using traditional financing. However, this trend is slowly starting to turn as prospective borrowers have a better understanding of their options. 16 | The M Report One of our main goals at UWM is "Lending Made Easy." Our objective is to make the lending process more transparent and efficient for the broker so the customers have a positive lending experience and can pursue the American Dream. We believe that once borrowers understand their options and have lenders that provide transparency to the process, borrowers will be confident in their ability to obtain loans. Additionally, we are starting to see more originators leaving the big banks and returning to their roots in the wholesale channel. We see big lenders and credit unions coming back in the broker side of the business as many realized regulations create barriers to entry but do eliminate the wholesale channel. When the regulatory turmoil started a few years ago, many people worried about the future of the mortgage broker in the lending process and decided to exit the wholesale channel. However, as the regulations have become clearer, we have seen many of these individuals return to the wholesale channel as it continues to offer better customer service and product options for their customer base. M // Among the wide array of policy changes affecting the financial services sector, what key concerns are at the forefront for UWM, and what new initiatives are emerging within the company to address these issues? ISHBIA // The immense amount of regulatory changes facing all lenders is among the industry's most significant challenges, and from the Consumer Financial Protection Bureau (CFPB) to state-law changes, our industry is grappling with more policy changes and uncertainty than ever before. In my view, these changes should be welcomed by all as they place an emphasis on transparency in the process and the borrower, which will lead to a stronger mortgage industry. To comply with changes and stay ahead of the curve, a company must make a major investment in compliance. We have done so, and will continue to do so, at UWM. Companies unwilling or reluctant to make this investment will simply not survive. We view this as a win for the consumers, as only those lenders focused on transparency and strict regulatory compliance will be able to provide mortgage loans. M // As lenders make strategic changes in response to the country's shifting economic environment, what opportunities for growth do you anticipate during the next 12 months? ISHBIA // I think the next 12 months provide huge opportunities to all lenders, regardless of whether they are tied to a bank. As long as companies embrace the regulatory changes and proactively improve processes and systems, they have a chance to gain market share and a large customer base. Obviously, some large wholesale lenders have exited the business in the last 12 months, which has opened the door for other lenders to pick up market share if they are focused on customer service, loan quality, and regulatory compliance. The quality of brokers we see now is significantly improved from years ago, and we think it is going to continue to get better and better as the brokers that don't embrace the compliance changes and this new lending world will not survive. Those brokers that survive and embrace the changes will prosper.