In STRATMOR Group’s January
Insights Report, Senior Partner Jim Cameron borrows from Abraham Maslow's famed
“hierarchy of needs” theory to offer mortgage lenders a real-world approach to
shaping their strategies in 2024.
In his 1943 paper, “A Theory of
Human Motivation,” Maslow identified five levels of human needs, from the most
basic to the most advanced. Cameron’s InFocus article, “Maslow and Mortgages -
The Path to Actualization in Today’s Market,” outlines a similar hierarchy that
recommends lenders get back to consistent profits before embarking on their
longer-term strategic goals.
Cameron poses a question to the
industry: Can a hierarchy similar to Maslow's human needs define the stages of
need in today's mortgage lending space? He then outlines his “Mortgage Lending
Hierarchy,” a transformative, five-stage journey towards self-actualization for
lenders to fulfill their vision, mission and purpose.
“In today’s environment,
lenders that are losing money on production must first focus on shorter-term
tactical measures,” Cameron writes. “Once lenders have demonstrated that they
are squarely in the black, generating consistently positive cash flows, then
they can identify and execute longer-term strategies.”
STRATMOR’s outlook for 2024 is
cautiously optimistic, according to Cameron. “We see the pace of consolidation
quickening in the first and second quarters, followed by a modest rebound in
profits during the spring and summer,” he writes.