By David Lykken
Special to MPA
When you're traveling down the road on a long trip, you sometimes run into a tough decision. You spot a sign that says, "Last Exit for __ Miles," and you wonder whether or not you should take the exit. You look at your gas tank and try to judge if you can't make to the next exit miles down the road. Should you take that exit?
That is the very same question a lot of companies in the mortgage industry are asking today. Is it time to make an exit? The amount of uncertainty companies are facing in 2015 has left many business owners wondering if they will be able to make it to "the next exit." Many organizations are realizing that now might be the best time to sell, because it may be their last chance.
For most business owners, it depends not only on the level of uncertainty being faced but also on where those business owners are in their lives and in the life cycle of their businesses. If they've been in business for a while and they've reached a certain threshold in their accomplishments, they're probably more likely to take the opportunity for an exit in 2015.
The uncertainty in 2015 isn't all bad. It is giving companies who would like to sell but can't find the right time the opportunity to make a clean exit. But, beyond that, it's giving new players the opportunity to enter the industry and small players the opportunity to grow. All in all, I'm optimistic about the future as we enter into 2015.
David Lykken is 40-year industry veteran who consults on virtually all aspects of mortgage banking. David hosts a successful weekly radio program called “Lykken On Lending” (www.LykkenOnLending.com) that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals.