Are You Prepared for 2021?

By: Bill Dolan, CMB, AMP

2020 definitely taught us a thing or two about being prepared and staying informed. For the majority of financial institutions, it was also a blockbuster year with record originations, historical low interest rates and inflated pricing margins.

Turning the corner to 2021, MBA’s Chief Economist and others point out that job losses seen in 2020 were unprecedented and our recovery will depend on just how long the pandemic lasts, how quickly the vaccine is distributed and how soon jobs reopen. Keeping it real, many who thought they were on temporary furlough are now reporting permanent job loss. Many of the employers have or are in the midst of filing bankruptcy and the longer the restrictions linger in place, the economic cost will remain significantly real.

As for interest rates, many economists predict rates hovering between 3% and 3.3% for 2021. MBA is forecasting mortgage originations to fall from $3.18 trillion in 2020’ to $2.49 trillion in 2021’. Within this number, purchased originations however are to reach $1.54 trillion.

Now is the time to take the necessary steps to improve your mortgage business for 2021 and beyond. What steps are you prepared to take if originations, earnings and liquidity fall? How are you creating long-term relationships with your borrowers and members, providing them with a real customer experience, helping them to gain homeownership? Why are you not gaining market share within your own footprint?

If your Bank or Credit Union are not addressing these challenges or meeting your strategic vision, don’t wait any longer. Reach out to SCA to address these and other issues vital to: enhancing your mortgage manufacturing plant, streamlining process workflows and supporting the implementation of a new POS, LOS or PPE system. SCA stands ready to partner with you to support these as well as any other needs you might have. SCA provides Compliance training, Quality Control, HMDA LAR reviews, Secondary Market Rate Lock desk services and Training to name just a few.

We also work directly with CEOs, CFOs and Secondary Market managers to address balance sheet management concerns through the SCA Mortgage Exchange. This service provides our clients with the capabilities to both purchase and sell mortgage assets through the SCA Mortgage Exchange platform.

For a free consultation to discuss these and other services SCA offers, contact Bill Dolan at (617) 694-2617.

A Happy & Healthy New Year To ALL!