Can I Sign Nevada Banking Presentation

Can i industry sign banking nevada presentation simple

good morning how's everybody my name is Anthony Shea the pleasure to be here with all of you this morning we are certainly in fascinating interesting and scary times tomorrow's not yet here today and today is a little bit scary and a little bit shaky but man is the prize going forward just tremendous I'm gonna talk to you a bit about that today take a look at this ad there's a little bit of everything on there I thought it's a good example for us to set the mood this morning I actually started in the mortgage business six years before this ad I took my first loan application in 1986 with a typewriter it's hard to believe that I'm standing here in front of you talking about digital mortgage this morning and it's still my generation if we can just think had 10 years 15 years this is where all the excitement is building in our industry and other industries that are coming in to our sandbox one of the things that's really common at loan Depot is we understand that we must do some of the hard work business models will become more complex why because customers demand it it is just too confusing ninety-five percent of all of the products that you see on this page has been replaced by a smartphone it's not where you start it's where you finish today through the lens of the consumer they see a lot of stuff such as this it is the most complex the most stressful transaction a human being goes through in its lifetime and I think it's really important for our industry to understand despite the business pressures and higher interest rates is some of the price competition we have to focus in on the prize and that is we got to figure out how to delight that customer this is the tease at the least it is for us 96% 97% and 97% customers are telling us very clearly they need help they lack the confidence to choose the best vendor they feel frustrated and they will love to have a group of trusted vendors they can select from and I think what's really interesting here is the fact that four out of five are asking a lender to recommend a trusted realtor how can that be indeed very interesting times that we're in what customers want is they want a simplified experience and prefer less brands to get them through that transaction they actually would prefer one brand but today does not exist many companies will be chasing to answer that question to delight the customer very few will succeed lots of capital will be burned trying to satisfy that outcome what and how on the left is sort of a mock-up of what's happening today not exactly but you get the point it has been that way for decades right realtor drives the transaction they create the intimate relationship lots of driving around showing homes having discussions and then when is appropriate that hub where the local motive that pulls the real estate transactional train starts getting others involved and certainly as a lender and being a lender for over 30 years we understand that's the number one source of business for us to the right sort of the modern approach and that is with the power of the smartphone and technology advancements AI all of the things that are about to come our way customers in control and they will become more powerful as we move forward and that will continue to disrupt not only our industry but the way we do business I love this page because it now starts to talk about who if you look at some of the notes that I put on the left again it's not where you start but where you finish and look at the bottom right there I also think it's just a matter of time not a matter of if it's more a matter wind everyone's going after the same core customer you have big brands big companies making bets to add products and services in the two main components the real estate services and lending you have both parties looking at each other we're friends when will that turn into foe if you look on the right that's more of a traditional thought process of a lender we wait until somebody tags us in in a traditional mortgage model the institution or the company relies on field loan officers that carry the franchise value and has the relationships with Realtors and over the course of last four decades mortgage companies kill each other by recruiting each other's loan officers and it's still the case today well there's some new players in town they are way up funnel from us us meaning lenders you got contemporary digital brands that are now serving the customer in many of them becoming very powerful by the way green sky just IPO they have a market cap north of 3 billion homeadvisor last time I checked has a market value north of 10 billion lots of power there are lots of brains lots of intellect understands digital there's no doubt there are widen their products and services here we go here are some of the big names written has a mortgage company Keller Williams has a mortgage company and I'm sure everybody's seen the news three weeks ago Zillow now is about to have a mortgage company offer pad has a mortgage partnership with actually us loan depot and we all know about realtor.com an open door again they're widening their products and services they're getting more complex you have to get more complex because that's what the customers want this chart is more at the heart of this conference and that is a digital mortgage but I wanted to speak to all of you today to give you a glimpse into sort of how we view our positioning in our strategy going forward it has to be more than a digital mortgage the digital mortgage creates efficiency a better experience and it's really needed in our industry to drive down labor cost I'm sure most of you know that labor costs on a per funded loan basis in our industry increased in the last decade post dodd-frank we as an industry half we have to figure out how to push that back down this chart is extraordinarily powerful I call it a cross here the horizontal line the vertical line the horizontal line is a different type of complexity than the vertical line different challenges almost requires two different management teams or two different companies and this is the challenge of disruption take a look at all the products and services up above and the reason why it's there is simple that's what the customers are telling us they want in a perfect world that's what they want no one's providing that as of yet how many companies will do that going forward five years ten maybe fifteen I bet I'm gonna see it in my lifetime from the other companies are coming in to mortgages welcome to the jungle lots of stuff we do as a mortgage company however the complexities in the confusion of our industry blocking and tackling is gonna get easier because of the digital age and technology but if you read some of the comments well not comment but some of the compartments that I put in that vertical line you see how heavy it is to run a scaled mortgage bank and the question for most mortgage companies any sort of scale is do you build some of these things internally and make the investments and control your own destiny or do you pick some of these items and leverage vendors the answer is yes to both but for each individual company the variation in the ratio is uniquely different everyone has their own unique views of building it internally or to buy off-the-shelf for the last ten years we start alone depot in 2010 the defensiveness from traditional loan officers has always been I provide great service technology would never replace that I think they have all wrong who ever said that was a multiple-choice question its answers see all of the above customers want the convenience the ease the control they have utilizing technology they want to be the boss in communications but darn it when they want good service you better be there and our business is local a house is local Turin is local so blending a digital solution with the right digital tools along with local expert service in our opinion is the formula I wanted to share this not in a way of a commercial for our selves and our number-one competitor I think bills on states tomorrow at the exact same time so make sure you boo them for me this is interesting let's take a look at the refinance market in 2011 five years ago these two companies did 1 out of 30 reef eyes fast forward to the first three months of this year these two companies now have a massive position one out of every five I think the question here and the brainteaser is when does that ratio and trend stop it went from 1 out of 30 it's now one out of five pretty interesting stat and now let's look at the purchase market it's lagging about five or six years behind and it's certainly trending up also one out of almost 200 in 2011 and now one out of every twenty two so something to be said here about both of these companies becoming more complex why will we take on the headache of running a mortgage company and add additional products and services because the combined market share of these two companies I believe is only at 7% why don't we focus an increase that 7% to 10 or 15 why would we now focus on other items I can answer for loan Depot and that is we got to listen to our customers and they are telling us very clearly what they are looking for so let's bring us back to 1991 I know there are some folks in this room that didn't even exist in 1991 so consider this some education for you we think that moving forward the model the brand the marketing prowess and the companies with the right Protestant services to delight and keep a customer instead of just being a transactional hunter is ultimately going to win and win pretty big now will that happen in 15 years maybe half that time maybe in five years I think that's the interesting times that we're all in being in this business now 433 going on thirty four years it's absolutely fascinating the era that we are in we have enough challenges with housing cycles regulatory pressures compliance CFPB for the first time in this cycle post dodd-frank we have very little mortgage liquidity fueling products into our industry as you know ninety percent of this year's fundings is still backstop by Fannie Freddie FHA and VA now we have digital disruption we have a company such as ello with a hundred and sixty million monthly unique visitors we have real estate companies getting into mortgages we have tons of capital flowing into companies like open door and offer pad we have luxury car trade ends when you want to buy a new BMW but we have no trade end programs for real estate I think that's going to be very very interesting to watch to see how companies changes from a service model to more of a balance sheet model so I want to thank you for giving me the opportunity this morning I hope I set the right tone for this mortgage conference thank you very much for having me have a great conference [Music]