 According to National Mortgage News (v. 29, #42: 7/18/05), “a ‘price war’ of sorts is raging in the nonconforming sector.” Despite continued strong volume, industry executives report that nonconforming and sub-prime loan products are starting to see the same type of price competition that reduced conventional loan margins to virtually nil in 2003.
This clearly isn’t good news for the overall mortgage industry, but it can be good news for select lenders. Historically, when production declines, the first act for almost every lender is to expand product offerings and shift production to more profitable products. That’s the easy step and the one where most lenders stop. To take advantage of this market cycle, you should also focus on 1) identifying, creating and taking advantage of unique opportunities to increase production, 2) improving processes to ensure better customer service, and 3) streamlining operations to reduce costs while further controlling risks. These steps have always been the difference between lenders who lose market share during tough times, and lenders who take advantage of tough times to grow market share.
At Del Mar Database, we know that your success drives ours, and we’re committed to providing you with the tools you need to grow your business and gain market share in a downward trending market.
We’ve recently released two powerful new products targeted to boost your ability to grow your business: CommissionTrac™ and BusinessTrac™. Both have been used extensively in real lending environments, and lenders have reported that these tools helped them increase production, reduce costs, and improve profitability. Please take a look at the details on both of these new products contained in this newsletter.
We’re also just weeks away from the largest DataTrac® upgrade in Del Mar Database’s history. We’ve invested nearly a year of effort and significant resources into this project, and we believe that you will immediately recognize the benefits.
We are committed to providing you with technology solutions that give you a competitive advantage. Over the past year, while your competition has been downsizing, the majority of our clients have reported measurable growth in both loan production and overall profitability. We’re excited to be partners with the most successful lenders in the industry.
Thank you,
John Walsh, President, Del Mar Database
jwalsh@delmardb.com
|
