A large regional bank with more than $10 billion in assets wanted to capitalize on recent changes to the federal government’s Home Affordable Refinance Program (HARP), which helps homeowners refinance their mortgages to lower rates even if they owe more than their home is worth. For the bank’s direct lending unit, HARP was a tremendous opportunity to grow its mortgage loans.download pdf
“Why spend your time and energy trying to create a new wheel when it already exists and others are continually refining it?”
Incumbent lenders and traditional financial institutions are NOT on the verge of mass extinction. For financial institutions to succeed in today’s consumer lending marketplace, the answer is mass adaptation.
Some industries seem to not only accept competition, but also use it to their advantage. Retailers are masters at this, while most banks and credit unions struggle with the concept...