The only way to capture and measure trends is through primary scientific surveys - done every year. Purchase 2010 report.
THE COST OF NOT KNOWING
BEND, OR. - MORTECH, LLC, the premier provider of research on lender attitudes and behavior and their use of technology, informs research clients on industry change through its annual study, MORTECH.
“Current market conditions illuminate the risks of poor industry intelligence and lack of knowledge about lenders’ collective behavior,” said Jeff Lebowitz of MORTECH, LLC. “For example, we documented that starting as far back as 2003, one in twenty lender respondents specialized in non-prime loans. The percentage of lenders specializing in non-prime grew steadily to one-in-five in 2006. Having been tormented by interest rate spreads compressed by excess industry capacity, lenders were combing the land for non-prime product. Their instinct usually is to grow their way out of a problem.”
MORTECH quantified the overcrowding in the non-prime market space. The study showed the number of bankers shifting production to non-prime increased 50 percent annually between 2003 and 2006. The growth in the absolute number of lenders, most with little non-prime experience, signaled a potential catastrophe by excess competition in that sector of the mortgage industry.
MORTECH documented that lenders radically changed their production mix. At the same time, MORTECH research showed that these lenders did not build their management systems to control the change. In 2007, less than one in three lenders had a system to assess the attendant changes in rate and pipeline risk. MORTECH showed that there had been no increase in the number of lenders with risk management systems since MORTECH 2001 was reported.
“Lenders rushed into the non-prime business without being able to see the structural risks they would encounter,” Lebowitz continued. “They did not have the eyes with which to see the shape of the market and how it was changing.”
The current study, MORTECH 2010, is designed to give a holistic look at the market through scientific research design. MORTECH, LLC has begun to publish study chapters detailing how lenders are reacting to regulatory reform and to the structural changes caused by the liquidity squeeze of 2007.
“In our scientific sample of more than three hundred mortgage lenders, senior managers give us their perspective on how their businesses have changed,” Lebowitz states. “From the information collected from these interviews, we give our research sponsors a timely analysis of how lenders perceive business conditions and what will be their greatest challenges over the next twelve months. We have the data to compare today’s operational and technology responses with what they were in more normal times.”
The cost of not quantifying industry change is always greater than the cost of acquiring and assimilating such critical input from MORTECH, LLC.
For more information on MORTECH 2010, Contact Us.
Recently
Improving Loan Volume, Borrower Experience at 2012 MBA National Technology in Mortgage Banking Conference & Expo What: In today’s technology-driven world, borrowers demand the control afforded by an online lending experience that allows them to shop and compare all aspects of home purchasing and refinancing. This panel session will explore how lending institutions of any size can best prepare themselves to accommodate a tech-savvy generation that expects instant gratification as well as a transparent, user-friendly online shopping experience. Attendees will gain a greater understanding of how to use technology to deliver a consistent, positive consumer experience while providing timely disclosures and adhering to compliance requirements. Who: Jeff Lebowitz, owner, Mortech LLC will show how quality and market share combine to affect lenders’ ROI. When: Monday, April 23, 2012, 3:15 – 4:30 p.m. MST Where: Arizona Biltmore, Phoenix; Frank Lloyd Wright Ballroom, Salons A-B _________ Investing in quality improvement is just common sense. Isn’t it?
Approaching quality requires understanding how a change impacts the entire operation.
Quality as Strategy – The Basics
- Quality as perceived by customers (not vendor or lender) is correlated with increased profitability
- Customer experience is related to profitability through a complex chain of events
- Customer service requires new concept of lending
- Lenders are more focused on compliance and costs than on customer experience
- Perceived quality, absolute and competitive, can be confirmed only through systematic surveys.
For more than twenty years, MORTECH, LLC has built a reputation for identifying and verifying strategy using sound statistically reliable survey techniques. With our proprietary database of potential respondents, we can quickly survey customer and non-customers to validate your strategy and that of your competitors. When it comes to analyzing and supporting quality-as-strategy in your firm, we should be your first call.
To discuss your requirements, call Jeff Lebowitz at (203) 738-9429.
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MORTECH, LLC is the premier provider of research on lender attitudes, behavior, and their use of technology. MORTECH briefs its research clients and prospective sponsors on how its annual study gives them a new view of how the mortgage industry is changing.
A Technology Response to the Great Recession
It’s no secret how difficult it has
been for mortgage lenders to survive
the credit crisis of 2008 and the
Great Recession caused by lack of liquidity.
The greatest impact on the average
lender from the recession is a scarcity of
loan volume... 
A Technology Response to the Great Recession
It’s no secret how difficult it has
been for mortgage lenders to survive
the credit crisis of 2008 and the
Great Recession caused by lack of liquidity.
The greatest impact on the average
lender from the recession is a scarcity of
loan volume...
MORTECH, LLC
2600 NW Champion Circle
Bend Oregon 97701
(203) 738-9429
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