|Our CEO, Rocky Butani, attended the American Association of Private Lenders (AAPL) 11th Annual Conference in Las Vegas 2 weeks ago and provided some key takeaways to share with all the subscribers to our Industry Newsletter.
AAPL chose not to hire an economist to speak at the event because of market uncertainty. Even the best economists can’t be certain of what the future holds. Although things are looking good now, many lenders are expecting a wave of defaults and foreclosures in 2021.
Lots of NPL Buyers
More lenders and investment firms are ready to buy non-performing loans in anticipation of the tidal wave of defaults which has not come ashore yet. A few companies have created online marketplaces to facilitate NPL trades.
Institutional Capital is Back
Some of the large institutional capital providers that halted loan buying in March are now back in the market and ready to buy funded loans from lenders. Some of the larger national lenders that offer a correspondent program are aggressively marketing to increase loan volume.
Loan Program Diversification
As a result of the market shake-up, loan volume is way down for many loan originators. To make up for lost revenue, many lenders are open to partnering with larger lenders to diversify into new loan programs and regions.
High Demand for Technology & Marketing
This year a lot of lenders have made big changes to their technology systems and many are now ready to explore new options. Many lenders are also spending resources to rebuild their websites, create content and advertise to generate leads.
Thanks to a proposal made by AAPL and Geraci LLP, the Securities & Exchange Commission has expanded its definition of “accredited investors” which should benefit mortgage funds with capital raising efforts.
AAPL has created a benchmark data survey for the private mortgage industry to collect data and share with all the participants every quarter.
For additional insights about the conference, watch Rocky’s video on the PLL Social Network App. If you haven’t signed up yet, continue reading to learn more.