Bad Haircuts and the Future of the Mortgage Industry
There is a saying about a particular haircut that was popular in the 1980’s—the “mullet”, that says it represents “business in the front and a party in the back.” While I never particularly liked that hairstyle, I do appreciate its description. It suggests that there is a time for seriousness and a time for enjoyment, and that one person can pursue both without difficulty. A variation on that concept is occurring presently in the mortgage industry, but this bit of “multi-tasking” is not about a bad haircut or being serious or fun-seeking, but rather about presenting a consistent, trust-worthy presence to consumers while simultaneously working hard to adapt to a bevy of new rules and changing market conditions.
The mortgage origination business has always been about trust—trust between consumers and lenders and trust between lenders and investors in mortgage-backed securities. In the middle of last decade that trust broke down for a number of reasons and a crisis emerged. However, through it all many consumers, lenders and investors stayed true to their principles and, though weakened by the economy and the real estate market’s struggles, lived up to the faith upon which the trust of others was founded.
It is now 2013, we have put some distance between ourselves and the worst of the crisis. The economy is improving. The real estate market is making real strides to regain lost territory. The mortgage industry has faced unprecedented scrutiny, and rightfully so. Regulation upon regulation has been proposed, debated and passed. Implementation of these regulations has begun. Some have changed the way the industry functions, but mostly they have locked-in a degree of common-sense that was missing from all-three mutually dependent groups—consumers, lenders and investors.
When consumers view our business all they will see is the same professionalism, genuine concern and expertise we have always portrayed. What they won’t see however, is the hard work going on behind the scenes to ensure that this 25-year-old lender is busy incorporating the common-sense reforms that will define the industry going forward. The proof of our commitment lies, not in our hairstyle, but rather in our longevity and thousands of genuinely satisfied customers.
We welcome the opportunity to earn the trust of a new generation of consumers and investors.