Current Environment Offers Big Opportunities for Mainstream Lenders to Seize Market Share
Vantage Production sees distinct signs that regulatory and business environment favors mid-tier and growing mortgage bankers
October 13, 2015 –Red Bank, NJ – The current market environment of increased regulation is putting significant pressure on the largest banks and has created a growing opportunity for mainstream mortgage bankers, according to Vantage Production LLC, a leading provider of advanced automated marketing and sales acceleration solutions for mortgage lenders.
Sue Woodard, president and CEO of Vantage Production, personally originated loans and managed mortgage production for decades. She has witnessed numerous market cycles, but few with as much potential for mainstream and non-bank lenders as the present one. With several of the largest banks exiting wholesale lending and scaling back FHA originations, she believes mainstream mortgage bankers have an unprecedented opportunity to grow market share and influence across the country. As CNBC reported earlier this year, non-bank mortgage lending soared from 14 percent of the market in 2011 to almost 38 percent at the end of last year, and the trend continues, Woodard noted.
“Very large banks that formerly dominated are leaving the field for a variety of reasons, some of them regulatory and others of them financial,” Woodard said. “But the market won’t sustain a vacuum, and many companies are moving to seize market share within their existing operating areas, while others are focused on expanding into new territories.”
“The largest lenders attracted a lot of attention from regulators and consumer groups, which created a more attractive scenario for others that are less visible and beneath the radar. We are seeing many of these companies ramping up their recruiting efforts in order to grow nationally or regionally,” she said. “To recruit the best talent, they need to provide the tools proven to lead to success, such as automated sales and marketing programs, to help their originators make more loans.”
Mortgage loan originators (MLOs), Woodard added, are more discerning than ever when it comes to the marketing assistance provided by potential employers. That does not mean that compliance takes a back seat, however. “We have learned from the experiences of the mega-banks that regulatory enforcement can be swift and harsh. Lenders are most vulnerable on the front end, especially when representations and offers made to potential borrowers are not strictly controlled,” she said.
“Advanced CRM and sales automation enables lenders to standardize messaging, marketing campaigns and borrower presentations for complete regulatory compliance. But beyond that, it gives lenders the ability to instantly provide auditors with precise and complete records of what was represented to whom, and when,” she noted. “When auditors arrive, and they will, this sort of prepared response can set a much different tone for the rest of the visit.”
Another advantage mainstream companies have over the very large lenders is the big lender mindset for building technology rather than buying it, Woodard said. “Big IT departments often prefer to build custom platforms rather than leveraging those developed privately. Our flagship technology, Vantage Production VIP, would be a monumental task for any IT department to build from scratch due to its sophistication, integrations and data-centricity,” she said. “And in CRM, the content library and tools used to develop newsletters, flyers, presentations and other materials is paramount to success. Our market-tested marketing content library, as an example, would be virtually impossible to replicate for any company, regardless of size.”
The mainstream lending community is also more able to leverage the innovations coming out of the technology sector, Woodard said, due to less bureaucracy and fewer decision making layers when compared to mega-lenders. Woodard added, “The mainstream lender can remain nimble and enjoy the benefits of unit pricing, while the very large organizations tend to move more slowly and spread development costs across the entire enterprise.”
“Mobile strategies are a prime example,” she said. “When we rolled out Vantage Mobile, clients were immediately able to take advantage of having the key VIP features a mortgage originator on the go needs at their fingertips, instantly and from anywhere. It seems clear that the mainstream mortgage banker has true advantages today that were not there when the mega-banks ruled the roost.”
About Vantage Production
Vantage Production, LLC provides advanced mortgage-industry focused CRM systems, compliant automated marketing and sales solutions, compelling content for the mortgage industry and professional development programs. With solutions tailored to the requirements of enterprise lenders and loan officers alike, Vantage Production serves more than 300 leading lenders and tens of thousands of individual mortgage industry subscribers. For more information, visit www.VantageProduction.com.