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36 As the restfulness of the holidays slips into the rearview mirror and the mortgage industry returns to face the turmoil, surprises, and victories of a new year. While the housing landscape is, for the most part, no longer under the ponderous shadow of a global health crisis, there are plenty of challenges to be navigated. e Fed's ongoing efforts to combat inflation have driven interest rates to highs not seen in years, flipping the homebuying frenzy of last year on its head even as many companies are forced to adjust their workforces in the shadow of a possible looming recession. If the past decade has taught us anything, it's that even the wisest among us don't possess a crystal ball capable of prognosticating what the months ahead will bring. But all that said, the final days of a waning year and the first days of a new one are traditionally times to pause and reflect; to celebrate victories won, internalize the lessons of goals not achieved, and formulate a plan to move forward. In that spirit, for our January edition, DS News spoke with a cross-sec- tion of industry executives (including Five Star's Editorial Advisory Board) about their 2022 victories and biggest 2023 challenges—and how they're working to surmount them. Read on for insights from representatives of BOK Financial, Carrington Mortgage Ser- vices, Chase Home Lending, Fairway Indepen- dent Mortgage Servicing, Fannie Mae, Planet Home Lending, and U.S. Bank. Samantha Manfer Chief Business Development and Brand Officer, Planet Home Lending What are the biggest challenges you are trying to solve for in 2023? How are you working to surmount those challenges? Challenge #1 - As we head into a recession- ary economy, delinquency and default rates may rise for non-QM, Debt Service Coverage Ratio (DSCR), and residential transition loans (RTL or fix-and-flip). Each non-QM, DSCR, and RTL investor must create loss mitigation policies and workflows. Solution #1 - To maximize asset values, investors need strong subservicing and servicing partners experienced in default management, THE HURDLES AHEAD DS News speaks with representatives of Chase Home Lending, Fannie Mae, U.S. Bank, and more about last year's victories and how they're facing the recessionary economic challenges of 2023. Feature By David Wharton