Altisource Releases Report on the State of the Originations Industry
January 22 2019 - 9:03AM
Altisource Portfolio Solutions S.A. (“Altisource” or the
“Company”) (NASDAQ: ASPS), a leading provider of real estate,
mortgage and technology services, today released its 2018 report,
“The State of the Originations Industry.” The report showcases
results from the annual Origination Solutions Survey, a survey of
over 200 decision makers in the mortgage origination
business.
Mortgage origination professionals (29 percent) cited increased
purchase business competition as the biggest challenge in today’s
mortgage market; 25 percent said margin compression due to
regulatory mandates and 24 percent pointed to elevated interest
rates. With the increased purchase business competition, there are
fewer loan transactions for which to compete. This is primarily
driven by a tightened inventory of existing and new construction,
which helped drive home price appreciation. The combination of
higher interest rates and higher home prices has impacted
affordability, which has made it harder for consumers to upgrade to
more expensive housing and limited the inventory of starter homes.
As the available purchase business declines, capturing this
business relies on the originator’s ability to quickly respond to
requests and originate loans faster, with great customer
experience.
When looking at the most promising market opportunity, the
mortgage origination professionals surveyed ranked construction
loans as the most promising (25 percent) and non-QM loans (not
including jumbo loans) (20 percent) as the second most promising.
Construction activity should increase over the next year due to the
robust demand in the overall housing market and the historical
shortage of existing housing supply. The non-QM market is predicted
to grow by 400 percent over the next year1 and while this growth
only represents an increase of $5 billion-$8 billion in annual
production, the appetite for this asset class is still growing and
the non-QM opportunity should be watched.
“The survey uncovered many industry insights, including risks
and challenges present in the market,” said Justin Vedder, Chief
Operating Officer, Origination Solutions, Altisource. “The biggest
challenge identified, with respect to the mortgage market, is the
economic environment today and into the near future. With that
said, originators can take certain steps to stay competitive. For
example, consider outsourcing some or all fulfillment, closing and
processing operations, join a peer network, continue to look for
new talent while also focusing on the retention of top performers,
add new loan programs but offload the risk and operational cost to
a third-party and be bold with piloting programs that will generate
higher margin revenue.”
Click here to download the full report, “The State of the
Originations Industry.”
Survey Methodology
The Default Servicing Survey was completed online among 202
decision makers in the U.S. mortgage origination business.
Fieldwork was conducted by independent global market analytics
firm, Echo Research, between July 17 and 22, 2018. The margin of
error associated with the sample of n=202 is +/- 6.9 percent at a
95 percent confidence level.
About Altisource®
Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) is an
integrated service provider and marketplace for the real estate and
mortgage industries. Combining operational excellence with a suite
of innovative services and technologies, Altisource helps solve the
demands of the ever-changing markets we serve. Additional
information is available at altisource.com.
Source: Altisource Portfolio Solutions S.A.
1
https://www.housingwire.com/articles/43458-mba-secondary-the-industrys-appetite-for-non-qm-is-growing
Investor
Contact:Michelle D. EstermanChief Financial
Officer770-612-7007Michelle.Esterman@altisource.com |
Press
Contact:Britt E. GottliebSenior Manager,
Communications617-728-6118Britt.Gottlieb@altisource.com |
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