HousingWire Daily James Kleimann on the mortgage M&A tipping point
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May 29, 2025 James Kleimann, Managing Editor at HousingWire, dives into the world of mortgage mergers and acquisitions. He highlights the trend where midsize firms are snapping up smaller companies and the challenges they face in a shifting market. The conversation shifts to AI's revolutionary role in mortgage appraisals, emphasizing the need for tech while maintaining personal connections with clients. Kleimann also discusses the balance between automation and relationships, showcasing the evolving dynamics of the mortgage industry and the opportunities AI creates.
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Mortgage M&A Trends
- M&A activity is increasing with midsize mortgage lenders buying smaller players.
- Supreme Lending's acquisition of Michigan Mutual reflects this trend and helps diversify into wholesale lending.
Scale Crucial for Profitability
- Mortgage companies under $1 billion annual volume struggle to be profitable in the current market.
- Companies are rethinking their business models, focusing on scale and channel specialization like wholesale.
AI Impact on Mortgage Jobs
- Many mortgage jobs have already been cut, especially processors and underwriters.
- AI is expected to significantly reduce roles by automating processing, underwriting, and post-close functions.