Tuesday, April 22, 2008

iEmergent: mortgage market forecasts

In an effort to enhance lenders’ marketing efforts, Des Moines-based iEmergent, a market research, forecasting and advisory services firm for the financial services, mortgage and real estate industries, has introduced its suite of Market Manager reports. iEmergent's primary product lines are derived from unique market metrics that calculate where and what types of lending opportunities exist, enabling lenders and brokers to anticipate and forecast mortgage opportunity.

Founder and president Dennis Hedlund says his company’s reports are based on years of advisory work his company has done for major lenders and mortgage data going back into the early 90s. He says that lenders need more information about the markets they hope to compete in and historical analysis will not suffice.

“These are exceptional times,” Hedlund said. “[Markets like] Seattle or Columbus get a terrible rap for low growth and lack of opportunity, but within all of these markets there are opportunities. Lenders need to look underneath their markets. The opportunities are like diamonds everywhere, but it’s not like 2004, when you put out a shingle and someone called you for a refinance.”

Unfortunately, Hedlund says that most lenders are still thinking about the transaction, tactically instead of strategically. During the refi boom, lenders were forced to seek out efficiency. They opened offices where their businesses took them. Now, they are faced with a different environment and must make informed decisions as to how to grow their businesses.

“Many of the institutions I’ve worked with in the past haven’t utilized this level of forecasting, which goes down to the community level,” he said. “They felt that all you needed to know was what happened last year. The problem is that even if you know what happened in the last 3 years it won’t really help you much this year.”

In response to that iEmergent is making available a number of market analysis reports that provide mortgage lending forecasts, market comparisons and measurements. With the reports, financial institutions can identify and quantify the current potential lending opportunities in markets throughout the United States, the growth rates of mortgage lending in the future and how those opportunities are changing in individual markets.

Where is the opportunity in today’s market? Hedlund had some tips: Look to Dallas, Kansas City, Washington D.C. and Chicago.


Dennis Hedlund said...


We might have miscommunicated a little when we were talking and comparing different mortgage markets. Seattle has actually been a very strong and solid market throughout the current troubles and should continue to get a good rap. We should substitute St. Louis or Pittsburgh for the Seattle Market. Like most cities in Ohio and Michigan, they suffer a bad rap from the conventional wisdom, even though there are solid lending opportunities in many local communities within those metro markets. Unfortunately, the local pockets of opportunities are rarely, if even, mentioned in national press coverage. Thanks for bringing attention to the issue of new perspectives in market intelligence to others in the mortgage lending space.

Dennis Hedlund - iEmergent

Rick said...

Thanks, Dennis. I checked my notes and that was me. Thanks for the correction. I hope you'll keep us in the loop as the markets continue to change.