TheMReport — News and strategies for the evolving mortgage marketplace.
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24 | M R EP O RT FEATURE W hile 2020 was certainly a strong year for mortgage originations—even during a pandemic—there were many lessons learned that will assist lenders and consumers in 2021 as more and more families want to fulfill their dream of sustainable homeownership. Throughout 2020, record-low mortgage rates drove borrower demand that sus- tained mortgage origination volume all year long. Many experts expect this low interest rate environment to continue in 2021. According to the Mortgage Bankers Association's Forecast, mortgage originations are expected to be around $2.75 trillion in 2021, which while lower from 2020 would be the second-highest mortgage market in the last 15 years. This year should be another banner year for homebuyers and mortgage originators. Unlike every cycle before it, origination volume reached a very high level in 2020 despite the large spike in delinquencies due to the pandemic impacting our economy. Typically, such a spike does not happen in tandem with high origination volume. On one hand you have employed borrowers who are able to take advantage of the low interest rates to purchase a home or refinance an existing mortgage. On the other hand, you have families facing financial hardship and unemployment who need access to homeowner assistance pro- grams, such as forbearance and payment deferral, to help them keep their homes. In the midst of disruption, the mortgage industry was able to quickly adapt to manage their resources between helping consumers purchase homes or refinance existing mortgages while assisting other families in need with participating in programs to keep their homes. Navigating this unprecedented year left us with quite a few lessons to help guide us into 2021. Here are a few areas that industry participants should keep in mind. 01 Staffing & Technology Needs Evolve R egardless of industry or sector, staff- ing and technology remain critical factors in being successful in providing an exemplary customer service experi- ence while managing volume that is 5 Lessons Learned To succeed in the year ahead, a narrow focus on tech, training, and these other top areas will be key. By Brian Gould