2021 Originations Report

EXECUTIVE SUMMARY

This annual Altisource® Originations Report features the results and analysis of recent in-depth survey findings compiled by Echo Research, an independent market research firm. It was conducted online among 200 professionals in the U.S. mortgage industry between August 17 and August 29, 2020. The purpose of this report is to help lenders optimize their operational and marketing strategies by giving them a look at the elements shaping the mortgage industry today. It also reveals how other originators plan to increase growth and efficiency this year. 

COVID-19 has altered the industry and the world significantly and will continue to do so into 2021. Though the pandemic continues to affect health and the economy, people and industries 
have quickly adapted to the new and evolving normal. Mortgage companies and vendors banded together to adjust processes so they can continue serving customers. At the same time, historically low interest rates led to an all-time high in mortgage lending for new loans and refinancing. While that was great news, many lenders have been unable to meet the massive demand due to capacity issues, which is why they are outsourcing and working with third-party service providers. 

The pandemic heavily influenced some of the results of this survey. For example, respondents cited regulatory constraints as the biggest challenge facing them today. They chose technology as the second biggest challenge, yet they also selected technology enhancements, like automation and e-closing options, as the most important factors for differentiating organizations in a competitive market. For the most promising market opportunities, they chose home equity and FHA loans. 

Customer service and outsourcing also stood at the forefront. Professionals expect customer experience to not only be a differentiator in 2021 but also an opportunity to make mortgages more attractive. Increasing outsourcing for core services ranked highest again this year for biggest operational efficiencies lenders are considering in today’s lower-volume market. Now is the time to utilize technology, improve customer experience and implement outsourcing to help your company stand apart. There are plenty of opportunities to do so, and this report highlights some of them.

Regards,
Steve Greenfield  
General Manager, Mortgage and Real Estate Solutions, Altisource