A Deep Dive into the HousingWire 2024 IMB Summit
Earlier this month, we attended the inaugural HousingWire IMB Summit in Dallas where nearly 300 mortgage banking executives gathered to discuss topics and initiatives that move the bottom line - M&A activity, margin compression, channel balance, new products and their tech stack.
Here are some of our biggest takeaways from the event:
1. The Housing Market Outlook: Cautious Optimism
The summit started with a look at the housing market’s future, offering a cautiously optimistic outlook for 2024 and beyond. While originations are expected to rise modestly—perhaps by 5-10%—it’s important to acknowledge that we won’t see a return to the explosive peaks of 2021. The message was clear: the worst may be behind us, but growth will be slow and steady.
2. Refinances: Not the Same Boom
There was considerable discussion about refinances. While there will be an increase, we certainly won’t see a repeat of the 2021 boom. Large servicers are primed to capture the majority of refinances, meaning IMBs should not expect a windfall. Instead, the emphasis was placed on differentiating through niche products like non-QM loans, reverse mortgages and single-family rental (SFR) loans. This diversification is critical for IMBs as they navigate a more competitive landscape.
3. Competing in a Challenging Market
A recurring theme throughout the Summit was the need for IMBs to innovate and find new ways to stay competitive. The conversation moved beyond just offering competitive rates; the focus was on delivering exceptional customer experiences, leveraging social media for promotion and supporting loan officers (LOs) in growing their reputation and skill set. With fewer LOs in the market (down to 90,000 from a peak of 250,000), recruiting and retaining top talent has become more important than ever.
4. The Importance of Fast Closings
One of the most actionable insights for our company was the emphasis on speed in the closing process. With rates dropping, buyers are often wooed away by better offers from competitors if closings drag out. For IMBs, ensuring a fast, smooth closing process is not just important—it’s essential. This is where we come in. CSS can make a huge difference for our lender partners by providing an accurate appraisal and seamless title and closing experience that supports our partners in retaining their borrowers.
5. Mergers and Acquisitions on the Horizon
Mergers and acquisitions (M&A) were another hot topic. With 28% of IMBs still losing money and smaller players facing increasing challenges related to technology and recruitment, consolidation is likely on the horizon. Experts predict an uptick in M&A activity over the next 12 months, which will shape the future of the industry.
6. Technology and Efficiency Gains
On the technology front, there was continued interest in eNotes, with adoption rates increasing. The FHFA also discussed the potential for AI to transform the housing industry, although specifics were limited. One thing remains clear—IMBs must continue to find ways to operate more efficiently to stay profitable, especially after enduring several quarters of financial losses.
7. Regulatory Changes and the Election Impact
The summit also touched on how the upcoming election could affect the housing industry. Regulation remains a wildcard, with potential changes to the CFPB and FHFA depending on the political outcome. Tax reform, including possible changes to mortgage interest deductions and 1031 exchanges, could also impact the industry in significant ways.
As we move forward, it’s clear that IMBs need to be agile, innovative and customer-centric to thrive in a slower, more competitive market. For CSS, our focus continues to be supporting our partners with fast, efficient closings and providing the tools to help them stand out in an increasingly crowded field. It was a great reminder that, even in uncertain times, those who adapt and evolve will find a way to succeed.
Ashley is the CEO of CSS and oversees all aspects of the company’s strategy and operations.
Corporate Settlement Solutions is a single-source provider of real estate title, closing, valuation, flood and recording solutions.
Our team is highly engaged in delivering results that make our customers more efficient, effective, and profitable.
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