The latest shift in the mortgage industry is the uptick in rates that began in May of this year. Lenders that plan to thrive in this new rate cycle will have to be serious about housing finance.
Mortgage industry ups and downs are nothing new, it being one of the more cyclical financial service segments. However, the latest shift, an uptick in rates that began in May of this year, is different from the marginal increases of the last four decades for two reasons:
This increase signals the start of what could be the next rate cycle.
Regulation is more prominent today than at any time in mortgage lending history.
This means that lenders will have to be serious about housing finance if they plan to thrive in the new cycle, investing in technology, consulting and outsourcing to drive the efficiency necessary to succeed.