The article outlines the speed of the resurgence in the mortgage lending market, compared to historically slow market downturns. The article notes that the increases over the past four months in originator activity has been inspiring, and although there have been some negative indicators the overall resurgence has been one of positive growth.

The article explains that given the market conditions, gaining more customers has been a challenge for home lenders during this period. The article also points out that while lenders have been aggressive in acquiring customers, they have been able to keep their headcount levels stable by using this time to further streamline processes, foster greater cost control and improve profitability.

Additionally, the article looks at the Federal Housing Administration’s Future of Reverse Mortgage Impact Report, which identified the FHA’s reverse mortgage program as a major source of cash flow for home owners, retirees, and their families. As such, the article points out that independent mortgage bankers (IMBs) have utilized this program to expand their offer and potentially even draw new customers away from traditional banking sources.

Overall, the article highlights the resilience of mortgage lending during this pandemic, specifically focusing on the rebound of the mortgage originator system. Despite being initially caught off guard, lenders have persevered and have been able to create new strategies to survive and even thrive in a difficult business climate. As the pandemic continues, it will be interesting to see if traditional banking sources will be able to counter the new business models emerging from IMBs.

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