Looking to Survive Subprime?

Sensing an opportunity in a turbulent mortgage banking industry, Vermillion Consulting, Inc., and Mortgage Banking Services Direct said Tuesday that the two niche-market management consulting firms have formed an alliance that will seek to teach subprime lending companies how to survive current market conditions. Call it the newest growth area in the management consulting field, which has long thrived on providing expert insight — or useless recommendations, depending on who you speak to — to industries facing tough challenges. Leaders at each company said their collective effort comes as a response to current industry conditions that have claimed more than 50 lenders at last count, according to the site Mortgage Lender Implode-o-Meter. Dale Vermillion, head of the consulting firm that bears his name, claims to have worked with more than 250,000 mortgage professionals and consulted directly with more than 120 mortgage companies nationwide. David Lykken, who heads up the mortgage-industry focused management consulting outfit MBSD, previously ran two regional mortgage banking companies. Both men said they plan to share with clients their knowledge from more than 50 years of combined industry experience on subjects ranging from sales conversion and differentiation, to investor relations and mortgage technology. “Because of the lending practices employed during the market boom, we have been anticipating the current market conditions for two yearsâ€? said Vermillion. “David and I not only understand the market we are entering into, but have been through similar markets before in our careers and have a lot to share with mortgage professionals to help them succeed in this tumultuous and changing market. “Instead of focusing on what may happen, we want to teach companies and their employees how to not just survive, but thrive, in the current market conditions,” he said. “Sub-prime lenders are unaware of the numerous ways they can maintain profitability, even as the market contracts,â€? said Lykken. “The primary goal of this alliance is to provide new information to the industry that will enable them to become more efficient.â€? For more information, visit http://www.mbsdgroup.com or http://www.dalevermillion.com.