We constantly get “recruited” by large mortgage banks that want JVM to affiliate with them (b/c they want our volume, reputation and/or trade secrets).
The pitches always fascinate us b/c they often tout their nebulous “support” (something we don’t need) and growth, but who isn’t growing in this market?
(all we ever want is extremely low interest rates, extraordinarily strong underwriting support and short turn-times)
This is why it was refreshing to be contacted a few weeks ago by a mortgage bank that is entirely focused on innovating in order to compete in a post-refi world.
The mortgage industry is going to all but collapse in one to two years when rates either bottom out or go up, bringing this massive refi boom to a screeching halt.
Everyone knows this but smart companies are innovating like crazy to prepare for this inevitability – at the expense of volume right now.
What they are doing is using tech, AI and virtual labor to cut costs to the point where they can deliver top notch service AND the lowest rates in any type of market.
During boom times, like both the mortgage and real estate industries are experiencing right now, most firms focus only on the present and often get killed when the future arrives – usually much sooner than they expect.
The above subheading is also a link to an excellent article that illuminates 50 companies that failed to innovate – and most flamed out as a result.
Here are a few examples:
- Kodak. They completely missed the digital photography revolution b/c they didn’t want to give up their lucrative film sales.
- Nokia and BlackBerry. They missed the smartphone revolutions.
- Blockbuster. They were rolling in cash when they arrogantly told Netflix to go pound sand in response to Netflix’s merger proposition in 2000.
- Yahoo. They lost out on “search” to Google.
- Xerox. They all but invented the personal computer (PC) and completely missed the massive opportunity it presented.
- IBM. They continued to focus on mainframe (large) computers and missed the PC revolution.
- JCPenney and Sears. They completely missed the online retailing revolution.
There are numerous other examples including Netscape, MapQuest, Atari, Circuit City, Borders Books, Sony, MySpace, and RadioShack.
So, times are booming.
We all should either save a lot of money so we can effectively retire when the next slowdown comes, or we should be focused on innovation like never before.
I like working, so I plan to stay firmly ensconced in the innovation camp.
Call me in 2022 and I’ll let you know how we did. 😊
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167