Jay Plum of a major bank emphasizes the importance of mortgages as a core product, citing their sizable direct-to-consumer and correspondent channels. The bank is focusing on gaining market share in 2025, leveraging its status as one of the largest servicers. Plum explains a strategic pivot away from warehouse lending due to the Basel III rule changes, which have raised costs and liquidity challenges across the industry. Emphasizing customer service, he notes that quality service is crucial for growth in the competitive mortgage landscape.
"We're the tenth-largest bank servicer in the country. We've bought MSRs, and that's purely an economic play. The immortal role of buying low and selling high applied when we bought MSRs when they were at 3% and 4% interest rates."
"The reason we left was because of the proposed Basel III rule change. It made our MSRs more expensive, and it made things like warehouse lending a much more difficult business."
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