Altisource Releases Report on the State of the Originations Industry
Mortgage origination professionals (29 percent) cited increased purchase business competition as the biggest challenge in today’s mortgage market; 25 percent said margin compression due to regulatory mandates and 24 percent pointed to elevated interest rates. With the increased purchase business competition, there are fewer loan transactions for which to compete. This is primarily driven by a tightened inventory of existing and new construction, which helped drive home price appreciation. The combination of higher interest rates and higher home prices has impacted affordability, which has made it harder for consumers to upgrade to more expensive housing and limited the inventory of starter homes. As the available purchase business declines, capturing this business relies on the originator’s ability to quickly respond to requests and originate loans faster, with great customer experience.
When looking at the most promising market opportunity, the mortgage origination professionals surveyed ranked construction loans as the most promising (25 percent) and non-QM loans (not including jumbo loans) (20 percent) as the second most promising. Construction activity should increase over the next year due to the robust demand in the overall housing market and the historical shortage of existing housing supply. The non-QM market is predicted to grow by 400 percent over the next year1 and while this growth only represents an increase of
“The survey uncovered many industry insights, including risks and challenges present in the market,” said
Click here to download the full report, “The State of the Originations Industry.”
Michelle D. Esterman
Chief Financial Officer
Britt E. Gottlieb
Senior Manager, Communications
Source: Altisource Portfolio Solutions S.A.