As the mortgage industry wound down from explosive origination volume seen in 2020 and 2021,
Thus far, two groups of industry stakeholders are emerging: those that have enough capital and see the depressed market as an opportune time to grow market share and companies that can no longer stay afloat.
As a result, merger and acquisition activity ticked up. In 2022,
So far, deals have been struck in
Stakeholders in the industry looking to acquire others keep an eye out for similar cultures and whether a company dominates in a particular region that the stakeholder is trying to expand into.
David Hrobon, principal at Stratmor,
"For most [lenders], market share growth is simply calculated by product of the acquisition. Their primary motivation is to add loan volume (scale) that will help them offset their fixed expenses and return to an acceptable level of profitability," he said.