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In a year that's seen the implementation of numerous regulations, a recent survey released by recruiting firm Hammerhouse LLC finds more originators are concerned about the overall shape of the market than they are about the regulatory environment.
According to results in Hammerhouse's 4th Annual Survey of Originator Opinions, 44 percent of originators polled said the biggest challenge for the industry in 2014 will be "adding new relationships to support a purchase focused business" with purchase volumes still too weak to support the market.
In other expected hurdles, 23 percent said they're worried about increased competition over a declining business segment, while 21 percent cited concerns about the next phase of regulation being implemented.
Despite skyrocketing loan closing costs over 2013's fourth quarter, the smallest share of respondents—12 percent—said margin compression and loan costs represent the biggest challenge ahead.
Given these obstacles and the continuing decline in mortgage volumes, 69 percent of originators expect overall volume to drop in 2014, though more than half still say they expect to exceed their own personal 2013 production numbers (56 percent admitted to not making their goal last year).
"This year is where originators and lenders must come to terms with the new realities of the mortgage industry," said Drew Waterhouse, managing director at Hammerhouse. "The discrepancy in industry versus personal expectations relative to origination volume deserves close monitoring as it could signal a coming reality check."
