NMP - December 2016 - 30


MBA's 2016 Annual Convention

DECEMBER 2016 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

30

his is the 17th
time since 2008
that this survey
of senior
mortgage
banking
executives has
been
conducted and
distributed. It is completed twice
annually, at the Mortgage Bankers
Association (MBA) Annual
Convention in October and at the
MBA's National Secondary Market
Conference each May.
My conference experience this
year consisted of attending the
Capital and Secondary Market
Committee Meeting, lunching with a
Fannie Mae executive, meeting for
an hour with the president of Ginnie
Mae, breakfasting with two new
potential clients and completing 29
surveys over three days. I've been a
full-time observer and student of the
mortgage banking industry since
1977 when I worked for MGIC and
wrote a weekly newsletter on the
secondary market for a decade
plus. The Boston convention was
my 35th in 39 years in the industry.
As there are many new recipients of
this report, it is worth mentioning
that in 1996, I became the first
public major critic of the GSEs
within the ranks of MBA's
membership. Note that the
referenced speech from the October
1996 Annual Convention is available
to curious readers upon request.

T

The purpose of this survey is to
capture some basic production data
and gather the opinions, ideas,
values and expectations of senior
mortgage banking executives on
many of the business and industry's
key issues, topics and concerns. A
second purpose of this series is to
bring senior executives further into a
public discussion of key industry
issues and topics without drama
and despite the sometimes
controversial nature of the
underlying issues.
For this year's convention, 29
meetings were arranged and an
equal number of surveys were
completed. The surveyed group
consisted of 13 CEOs/presidents,
eight EVPs, five SVPs and three
VPs. Excluding the
CEOs/presidents, all of those
surveyed this year work in capital
markets, production or operations.
Of the firms represented in the
survey, nine will produce more than
$10 billion in 2016, another 10
originated $2-$9.9 billion, and 10
produced less than $2 billion. The
smallest firm, a brokerage, did $75
million, and the largest was the
largest ... you know who!
The executives surveyed
represent 15 banks and 14 nonbanks. Included were two
homebuilder-owned firms, one
mortgage brokerage, a realtorowned firm, five private equity-fund
owned companies and another
owned by a hedge fund. One of the

firms runs an Internet-based call
center. Twelve of the firms originate
through one channel, 10 produce
loans in two channels, and seven of
the 29 originate in retail,
correspondent and broker
wholesale. Several others run
ancillary call center operations.
The surveyed group is carefully
structured to be representative of
the lending industry in terms of the
size of firms, their reach and scope,
physical location, product menu and
operating channels. All efforts are
made to mimic the membership
profile of the MBA.
The 70-question survey was
drafted in the weeks before the
conference, tested, and run past
several industry folks for
completeness and clarity. Input into
the questions was sought and
received from past and present
members of RESBOG and MBA
officers, and from several past
chairmen of the Capital and
Secondary Market Committee.
Except for the advance test group,
all the surveys were completed face
to face during meetings at the
convention held Oct. 23-26, 2016.
About 40 minutes was required to
complete each survey. I had
scheduled a meeting virtually every
hour from breakfast to dinner on
Sunday, Monday and Tuesday.
My survey process starts with
recording the responses to the
questions, then compiling the
information in a spreadsheet,

preparing a report of findings, and
distributing it to those surveyed and
other interested parties.
Information extracted from the
questionnaires has been used for a
years-old serial-"The Corner Office
Outlook"-which was published
periodically in Mortgage Banking.
The August 2016 issue contained
the 10th article in a series I coauthor with Tom Millon, CMB/CFA
and CEO of the Capital Markets
Cooperative, sponsor of this year's
survey. It was based around issues
and topics contained in the survey
from last May.
As for the survey group, it
consists almost exclusively of longstanding industry associates, clients
and friends. The common
denominator is that all are industry
veterans. Many of those surveyed
have participated in this bi-annual
survey since its inception. Most are
close industry contacts who have
helped me stay abreast of intraindustry issues, trends and
developments over the course of
decades. Only one of the 29
executives was surveyed for the first
time and no new firms were
included in the survey group this
time around. Note that more than a
half-dozen changes in the surveyed
parties were made over the past two
years to adjust for the major secular
shift to independent mortgage
banks (IMBs).
Although some of the questions
are time specific and appear on


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Table of Contents for the Digital Edition of NMP - December 2016

Contents
NMP - December 2016 - Cover1
NMP - December 2016 - Cover2
NMP - December 2016 - 1
NMP - December 2016 - Contents
NMP - December 2016 - 3
NMP - December 2016 - 4
NMP - December 2016 - 5
NMP - December 2016 - 6
NMP - December 2016 - 7
NMP - December 2016 - 8
NMP - December 2016 - 9
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NMP - December 2016 - Cover3
NMP - December 2016 - Cover4
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