Emerson was joined by Terry Schmidt, CEO of Guild Mortgage; John Hedlund, vice chairman of ICE mortgage technology; and Brian Woodring, chief information officer at Nurez.
Emerson acknowledged what he called the “elephant in the room” — industry consolidation — before turning the conversation over to Schmidt, who has been with Guild for 41 years and has overseen much of the company’s merger and acquisition (M&A) activity.
Speaking of the recent acquisition of Guild by a fund owned by Bayview Asset ManagementSchmidt said: “We’ve been in the business of acquisitions and acquisitions for a long time. It’s been a way for us to continue to grow in the retail channel, but also organically. But this came to the fore where we, as stewards of our businesses, really need to think about what the world will look like in five to 10 years.”
She added that the new owner “offers a lot more value and a lot more horsepower, (and) has a lot more capital to continue to grow and build the company.”
Woodring said he views consolidation as “the natural evolution of the industry.” He emphasized that larger companies with more capital can better deploy new technologies, improving scalability and efficiency for both lenders and borrowers.
Woodring also said that in an industry that is “resistant to scale,” artificial intelligence can help with consolidation and horsepower. “AI is 80% hype, 20% reality, but the promise is real,” he said.
“There is an opportunity for automation, and therefore to create that kind of virtuous circle, [which is] better for the lender or manager. It’s also better for the customer and better for the partner because it delivers a more streamlined experience,” Woodring added.
Hedlund said it is “critically important” for the industry to get the use of AI correct, compliant and accurate.
“Implementing any technology is a difficult decision. It’s time-consuming and you’re stuck with it,” he said. “The best approach is to think carefully about its purpose.”
Hedlund urged mortgage leaders to focus on solving real business challenges with technology, rather than simply deploying AI for the sake of innovation. “What is the ROI? Does it improve efficiency and strengthen the human element?” he asked.
Looking to the future, each panelist predicted continued automation and regulatory changes as borrowers adapt and develop expectations for high-tech transactions and interactions.
“Companies that embrace technological change will be more competitive,” Schmidt said. “The time is always now: you have to take advantage of the opportunities that are available and be prepared to deal with risks.”
#Mortgage #Leaders #Discuss #Consolidation #MBA #Convention