How mortgage companies can move from survival mode to strategic mode

00:00:00  Brook Tretter 
By then, then you're busy scrambling, hiring, training, and trying to keep up with demand. And truthfully, you're losing business. Some companies still think that strategic partners are just overflow support instead of an extension of the business that can improve quality and consistency and execution. 

00:00:19  Matt Sexton 
Welcome to MPA TV, where we bring industry leaders in to discuss topics that matter to mortgage brokers. I'm Matt Sexton, mortgage journalist here at MPA. Today our topic is From survival mode to strategic mode, how mortgage companies are building for what comes next. To discuss this topic, I'm grateful to be joined on this edition by Brook Treader, Managing Director at SitusAMC. Brook, thanks so much for joining us on this edition of MPA TV. 

00:00:42  Brook Tretter
Thanks, Matt. I'm happy to be here with you. 

00:00:44  Matt Sexton 
Let's dive right into the topic because it's, uh, been a very interesting time in the mortgage industry of late. What does it actually look like when a lender or a servicer moves from survival mode to strategic mode, and how can you tell if the shift is real rather than just a change in messaging? 

00:01:00  Brook Tretter 
You know, what we're seeing in, in conversations with our clients and even prospects is that they're looking to be more proactive rather than reactive. And they're asking, you know, how do we build an operating model that can scale as volumes fluctuate and make us more flexible? And they're looking at, you know, should they keep some of their functions internal or is it time to rely on more of a strategic partnership to provide them with greater flexibility? Whether that's outsourcing fulfillment or quality control or other operational functions. You know, the conversation has really changed in that it's, it's not just how do we do more with less, it's become more of how do we grow without sacrificing quality of the, or the borrower experience. And, you know, that's where an experienced partner can really make the difference. You know, bringing in specialized teams and controls needed to scale efficiently while allowing internal teams to stay focused on the client and growing the business. It's probably been one of the biggest signs of change that we've seen as people shifting more into a strategic mode in preparation, right? Organizations that are best positioned for the next market cycle aren't waiting for the volumes to come back. They're trying to problem solve and, and solve some of their operational challenges now. So they're putting the right people and processes and partnerships in place so that when the time comes to grow, they're ready and they're prepared to do that. 

00:02:21  Matt Sexton 
Obviously, you all work with so many different people in the mortgage industry. Given that SitusAMC works across such a wide range of players, from originators and servicers to investors, insurers, are you seeing that survival strategic shift happen at the same pace across the industry, or is it more uneven? 

00:02:37  Brook Tretter 
Well, that's a great question. The shift is definitely happening across. It's just not at the same speed, right? Originators have been feeling it the longest, and many have used the market slowdown to modernize their operations, like I mentioned. And get themselves ready for when the volumes return. They're asking, you know, how do we build a business that's, that's more flexible and can scale when the market comes back? So those priorities also depend on where they sit in the ecosystem. So like I said, originators tend to be thinking more about like fulfillment and borrower experience and expanding products where servicers and investors are looking more at, you know, data quality, compliance, risk, and operational consistencies. So, even though everyone's moving at a different pace and being impacted at a different time, they're all heading in the same direction and ultimately want the same outcomes, which is to be more flexible and execute better and stronger controls so that when the growth does come, they can take advantage. 

00:03:33  Matt Sexton 
Where does combining technology, data, and operational expertise change the outsourcing conversation compared to just handing off a function to cut costs? 

00:03:42  Brook Tretter 
Well, for a long time, let's be real, outsourcing was mostly viewed as, as, as a way to reduce costs. And to hand off work, right? But today, the conversation is more strategic, and lenders are looking for partners who can help them improve speed, visibility, quality control, and not just lower cost. So when you combine technology, data, and operational expertise, outsourcing becomes more than a staffing solution. It becomes a way to build operating models that are more scalable, more resilient, and better equipped to adapt to the market fluctuations. And really. Operational expertise is just as important as the technology. It's what ensures the work is done accurately, consistently, and in ways that meets investors', borrower, and regulatory expectations. To me, the strongest partner models have been bringing together people, process, and technology. That's what transforms outsourcing from a short-term cost savings measure into more of a long-term strategic advantage that can help improve both performance and profitability. 

00:04:39  Matt Sexton 
Let's look at it from a lender standpoint. How should a lender think about using compliance support, KPO, or fulfillment services as part of a growth strategy rather than a stopgap? 

00:04:50  Brook Tretter 
Matt, as the saying goes, stay ready so you don't have to get ready. So basically be proactive. And we're finding that companies that are investing in scalable operations proactively, they're not going to be scrambling when the volumes come back. They'll be prepared to capitalize on it. You know, functions like loan setup, processing and quality control, et cetera, they can all be designed to be flexible as demands change. And that gives lenders the flexibility every time the market shifts. You know, really one of the biggest opportunities I've yet to mention that we see and have been supporting our clients with is the rollout of new products. So whether it's HELOCs or closed in seconds or DSCRs or other specialized products that lenders often don't have the expertise in-house, They look for someone that maybe has that expertise to justify the investment, right? So instead of going out and hiring and training and taking on that cost, they look for a strategic partner that can maybe help them to roll that product out. And for us, we're fortunate in that these products, we see them in our TPR work and our teams are very familiar and experienced with those products. And it allows us to partner with lenders and help them roll out those new products to the market faster. While reducing the risk and cost of building that capability internally, and they can go to market and start seeing gains on that faster, sooner rather than later. 

00:06:07  Matt Sexton 
For a company still stuck thinking in survival mode, what's the first strategic move you tell them to make, and what tends to hold companies back from making it? 

00:06:16  Brook Tretter 
So, I don't think I would tell them anything that they don't already know, but surely I would suggest taking an honest look at their operating model. You know, ask what functions are truly strategic that they want to keep in-house and they want to own, and which ones could be better supported through a flexible partner. You know, many organizations, they wait till the volume returns before they make the changes. But by then, then you're busy scrambling, hiring, training, and trying to keep up with demand. And truthfully, you're losing business. You know, and another challenge is mindset. Some companies still think that strategic partners are just overflow support instead of an extension of the business that can improve quality and consistency and execution. You know, the companies that'll be best positioned for the next market cycle won't wait for growth before they become prepared, they're gonna use today's environment to strengthen their operating model and expand their product offering so they can scale with confidence without adding unnecessary cost, you know, and take advantage of those market gains when the time comes. 

00:07:12  Matt Sexton 
Before we wrap up today, any final thoughts you have? Because it's such an interesting time right now. Any last piece of advice for companies out there that are looking to navigate the current challenges? 

00:07:22  Brook Tretter 
No, I mean, outside of leveraging someone like us to to help them with really, it's delving into new markets, right? If the volumes aren't in your traditional products that you sell, then leverage those and see if you can get into some new markets without a lot of risk at the end of the day. And, you know, people like us, we're here and we're ready to help with that. 

00:07:40  Matt Sexton 
That's great work that SitusAMC is doing. Certainly reach out to them. They can certainly help you through this challenging time or any other time in the market cycle. That's gonna wrap things up for today's edition of MPA TV. I wanna thank Brook Treader from SitusAMC once again for joining us. And thank you for watching. I'm Matt Sexton. Staying so long, and we'll see you again next time.