New reverse mortgage originator competition numbers aren't as scary as they might seem at first glance. The inaugural issue of Reverse Market Insight's new ReverseIQ newsletter explains why a deeper look at this phenomenon can help companies plan their response to this current trend and weather the storm of competition.
Aliso Viejo, CA (PRWEB) August 28, 2008 -- Where do you find the good news when reverse mortgage volumes increase only 5% and the number of new originators explodes by 86%, as they did in the first half of 2008? Ask Reverse Market Insight.
The headline stories tell you that combination of statistics is alarming and spell certain pressure for any originators looking to reverse as a growth engine. But, as they always do, RMI has looked inside those numbers. They conclude these new competitors are likely to be less of a threat than the numbers indicate. "While many will divert some incremental loan volume away from the larger, more established competitors in the marketplace today, many more will struggle to rise above the lowest volume thresholds," said John K. Lunde, President of RMI.
RMI followed over 1,300 new originators who entered the market between the second half of re2005 and today, discovering many leave the business entirely and a huge share of the companies never rise above the 2-5 loans per month level. "Of the new competitors in Jul-Dec 2007, 22.6% did no business just six months later, and trends suggest almost a 50% fallout rate as they approach 1-2 years seasoning," said Topher Thiessen, VP at RMI.
RMI's complete analysis of these topics is available through a free subscription to RMI's ReverseIQ newsletter, with registration available on their website at http://www.rminsight.net.
About RMI -- Reports, KPIs (key performance indicators) and Metrics are useless unless they are rooted in a solid understanding of your business. RMI's unmatched experience with and exclusive focus upon the reverse mortgage industry allows for trusted solutions to your most difficult problems. Providing the complementary services of Market Intelligence, Business Intelligence, and Reverse Mortgage Consulting, RMI offers unique expertise and unparalleled excellence in strategic decision making for the reverse mortgage industry.
# # #
Trackback URL: http://www.prweb.com/pingpr.php/Q291cC1Qcm9mLVN1bW0tU2luZy1QaWdnLVNpbmctWmVybw==
|
