Mortgage lenders around the country are dealing with a turbulent housing market because of the Federal Reserve’s recent rate hike, the ongoing crisis in Ukraine, and the ongoing economic recovery following the pandemic. Lenders are also preparing for expected margin compression in the next year, as falling purchase demand, fueled by rising interest rates and property prices, collides with reducing refinance activity and market latent capacity. Lenders trying to improve their efficiency and profit may not see a clear road forward with the prospect of more rate hikes looming and rising geopolitical uncertainty on the horizon.

To reduce inflation, the Fed has begun to reverse the economic stimulus measures implemented beginning in 2020. As a result, the interest rate hike in March will not be the last. The Federal Reserve has announced six more rate hikes for this year, with the chance of more in 2023.

As a lender, you want to improve your processes, procedures, and people. Therefore, you should also consider how to improve and optimize your tech stack and what solutions you might employ. Lenders now have access to modern, cloud-native technologies that will make it easier, more flexible, and adaptable to scale their mortgage operations.

Capital markets and secondary teams such as the lending business seek the most advanced, bespoke digital solutions because they want to operate faster, smarter, and more profitably. Finding a platform that allows their function to be automated makes it easier to develop as a company while eliminating the need to increase hiring significantly–hence the risk of overhiring. To read more on the situation of the economic climate in the lending business, click here.

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Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid.

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