Last month’s black Monday was blue skies for lenders

by Donald Horne11 Sep 2015
While there are companies that do not market on rate, one result of the market taking a plunge on August 24 was a stampede of people coming to lock in rates when they dropped.

“In our case, it was actually a good business day,” says Maria Fregosi, the chief strategy officer for Home Point Financial, “because it motivated people to lock in rates.”

The battle for client loyalty shouldn’t be about rate, says the veteran who first got her feet wet on Wall Street, but should involve a meshing of mortgage and capital markets.

“When I met Willie Newman – who is our current CEO – he was working on the mortgage side of the house,” says Fregosi. “He and I shared a similar outlook, that if we could have the capital markets more closely aligned with the mortgage world, we could accomplish more together than as two separate entities. So I shifted over from the investment banking world over to the mortgage banking side – and I’ve never looked back.

“It’s tough to compete where the rates are,” continues Fregosi, adding that companies should focus on product, and not get caught up in rate battles. “That’s not what we’re about – rates.”

But if it isn’t about rates, what do lenders need to do to gain an edge on the competition?

“Service,” Fregosi told MPA. “That and education. The mortgage continues to not be the easiest process in the world, so we want to make sure that we continue to educate the broker and the consumer every step of the way. And that goes for the new TRID rules coming in to place, making sure our loan officers will be able to easily go through the process, and explain it to the consume.”


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