Housing News Podcast: Home Point Financial’s Phil Shoemaker talks broker expansions and what’s to come in 2020
The Housing News Podcast is a weekly wrap of the top news stories by HousingWire CEO Clayton Collins.
Each week, HousingWire interviews financial services experts who can help make sense of the latest headlines, sponsored by our partners at Arch MI.
This week, Phil Shoemaker, the executive managing director and chief business officer at Home Point Financial, discusses three housing trends to watch for in 2020. According to Shoemaker, the housing industry will see a boost in mergers and acquisitions, as well as broker expansions. Additionally, Shoemaker says the industry is likely to see an increase in technology in 2020.
Here’s more detail on the topics of discussion this week:
In Q2 of 2019, independent mortgage banks and mortgage subsidiaries of chartered banks reported a profit of $1,675 on each loan they originated. Not only is this profit significantly up from just $285 per loan in Q1, but it also marks the highest profit since Q3 of 2016 when profits hit $1,773 per loan. Despite this growth, Shoemaker says lenders will struggle amid increased competition in 2020, leading to an increase in mergers and acquisitions.
In his 2020 forecast, Shoemaker says the nation’s mortgage brokers are expected to continue picking up market share and a large number of loan officers are projected to make the migration from distributed retail, which he expects will grow the broker channel.
Financial technology is transforming the mortgage industry by making the origination process more convenient and secure for borrowers. As more lenders begin to offer fintech solutions to consumers, data from LendingTree suggests that borrowers are now closing on homes faster than they were in previous years.
And here are links to the topics discussed:
1) 3 housing trends to watch for in 2020
2) This is how fintech solutions are speeding up mortgage closing times