Competitive Landscape

"According to SourceMedia's most recent origination numbers, the top five lenders account for almost 50 percent of the market and all indications are that's going to increase. So the small to medium-size lenders need to focus on what they do best and that's the human interaction with the broker or borrower. They need to invest in a very robust point of sale and outsource their processing, because that's not what they specialize in and it's not what's going to differentiate them in the market. And in this type of market, you need a differentiator."
— Tony Garritano, National Mortgage News

"The biggest issue we're dealing with is the competitive nature of the industry and the pullback in housing. There's a dumbbell effect, where you have a number of very large lenders who are getting bigger and traditional small to middle-size mortgage companies who are being squeezed pretty heavily. You make a difference by providing a high level of service, and viewing your operation from the customer's point of view."
— Paul Swan, Nationwide Advantage Mortgage

"The goals and needs of mortgage customers are very diverse and we'll start to see more defined market niches emerge. The big lenders aren't maneuverable, where smaller lenders can focus to meet consumer needs. When lenders focus on the niches that differentiate them, they will develop products, technology and sales messages that ultimately will expand the mortgage market. Lenders focused on ITIN (using income tax identification numbers instead of Social Security numbers) in lending to the Hispanic market are an example of this. We are in the part of the mortgage industry cycle where there is opportunity for the small lenders to grow."
— Lee Decker, Overture Technologies

"One of the key questions in the industry today is: Can small to medium size lenders survive in a market where the big players are getting bigger and if so, how are they going to be able to do that? I think small lenders have the advantage of being nimble and they have sales and marketing distribution in their local markets. If they do a good job on customer loyalty and retention, they can continue to do well without having to sell out."
— Craig Focardi, TowerGroup

"I don't know that many of the community banks have ever really fully leveraged the mortgage opportunity with their customers. Any community bank that goes into it with the ambition of making great sums of money is going to be disappointed. The ones who go into it thinking, 'How do I give my customer the best experience, the most convenient and empowering process?' and their employees are very disciplined at selling other bank products and services will ultimately achieve real value from it."
— Tim Rood, The First American Corporation

"Technology also can help them find a valuable segment of the business or a local marketplace. Lenders segement by product, but not necessarily by borrower attitude and behavior. It's a place where there's plenty of room for improvement."
— Jeff Lebowitz, MORTECH-LLC.