TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/81279
FEATURE ANALYTICS money in ways that aren't very efficient. What we're noting is that . . . because of the new standards, much of the financial resources are being committed to people. So, when examin- ing profits on the operational side, we're seeing redundancy . . . where there are multiple people in the same function, with checkers to check and double-check the checkers. Going forward, those issues need to become automated for sustainability, and as the technol- ogy keeps advancing, it's important that lenders turn around and invest in the proper tools. We're seeing a lot of dialogue in the origination community about the outsourcing of quality con- trol and assurance, as well as underwriting; that's one of the most heated areas in the marketplace. MREPORT // Looking at the near future of the industry, what operational improvements are critical for success as regulatory and market challenges continue to evolve? duction in the total origination market when we move back to a purchasing environment, and one of the things I'm focused on with clients is starting the preparation process for those events now. Though we're currently focused on quality MCGUINESS // When I look at future projec- tions, I'm concerned about what happens when the refinancing boom slows down. Numbers for 2013 and 2014 demonstrate that, by all appearances, we're going to have a very robust refi market accompanied by low inter- est rates through the end of next year. But what happens then? The statistics are out there, and we see a re- to meeting regulatory standards and other mar- ket fluctuations, there needs to be simultaneous dialogue about getting that done in the most efficient way possible. It's critical that we start maximizing efficiency in conducting processes now in order to get in front of what's next. control and we're enjoying a robust market, we may be taking on much more cost than our infrastructure is able to accommodate in a more competitive market. If you've got major operational overhead due MREPORT // What new initiatives can your clients anticipate from Lenders One this year? MCGUINESS // Lenders One and our parent company, Altisource, have been able to develop some different dimensions, and we now have the ability to present products and resources directly to our clients. We still believe in our preferred vendor and preferred investor model, but we also believe that we can give our members a more robust choice in who they do business with. So, that's what led us to establish the new certified loan program, which we just launched at our annual conference in Chicago. We're currently working to integrate our clients, and the program will give our sellers rapid warranty protection on loans, which shields them from buyback risks associated with buyer misrepresentation or fraud. The inner mechanisms have a strict, built-in quality control component that helps provide additional safety. "When I look at future happens when the refinancing boom slows down. " — Jeff McGuiness THE M REPORT | 67 I'm concerned about what projections, ORIGINATION SERVICING ANALYTICS SECONDARY MARKET