A few thoughts on the “Second Wave” of the Digital Revolution
HousingWire ran a great article by Phil Shoemaker recently (you can see it here). I really felt it did a nice job summing up what we’re seeing in the run-up to 2020. Basically, the author builds nicely on the trends I think many of us are seeing (e.g. Another similarly stable year for origination volume; continued low-interest rates and the continuing battle against margin compression):
1) The industry will continue to consolidate: Obviously, this is great news if you’re looking to sell your business and great news for the many folks who’ve been competing for market share and aren’t selling.
2) Wholesale lending will continue to boom. The broker is back, and better than ever! TPO and independent originator businesses will continue to cash in on continued low-interest rates and a steady origination volume.
3) Fintech will increase. Obviously, this is our focus here at LodeStar. We especially agree that, as we move into 2020, the focus will be less on latching on to the newest, latest shiny technology (such as blockchain or AI) and much more about meaningful upgrade and integration among existing parts. As you know, this has been the point we’ve been pounding on for some time.
If the past two or three years have been the tip of the spear in terms of adapting better LOS or loan application technologies, we believe 2020 will be the second wave of the digital revolution. This will be the year that the industry takes a step back, has a look at the bigger picture and asks “How can we make all of these disparate technologies and solutions work better together?” The same has been asked about the entire real estate transaction for decades. It’s one of the most important issues for us to address.
We believe that, in 2020, we’ll start to answer that question. And it will start with a good look at ourselves and what we demand from our technology.
Using collaboration in that process:
On a related note, we’re preparing our 2020 conference dance card. After all, there’s a lot to be learned about collaborating by…well, collaborating. It’s very likely you’ll find us at MBA Secondary, Source Media’s Digital Mortgage Conference, the MBA Annual and several more conferences throughout the year. LodeStar did a lot of partnering in the effort to promote integration in 2019, and we’ll continue to look for new partners this year, too. If you have suggestions about great conferences or even potential partnerships or integrations, just reach out at firstname.lastname@example.org. We’d love to hear from you!
Until Next Week,
P.S. If you made it this far in the article I would love to hear from you! As we are building out this blog, I am always looking for feedback and some potential collaborators moving forward. You can reach me at email@example.com