Newsletter - February 2022
By now, most lenders have adopted mortgage tech that enables homebuyers to apply for loans online, but a shifting market demands even more investment in automation.
The Mortgage Bankers Association predicts the 30-year fixed-rate could reach 4% before this year is over, which will reduce the consumer interest in refinancing that made 2021 a banner year for lenders. The MBA’s forecast sees total origination volume dropping 33% to $2.59 trillion this year (and $2.53 trillion in 2023).
As lenders compete for fewer borrowers, those who invest in mortgage tech that makes the consumer experience simple and easy will come out on top – not just in 2022, but in the years to come.
Tech-savvy Millennials accounted for 37% of home purchases last year, according to the National Association of Realtors’ 2021 Home Buyers and Sellers Generational Trends Report. And as their influence over the housing market grows, lenders must evolve to keep up with their expectations.
In a survey by ServiceLink, 39% of younger consumers said they’d like to be able to complete more homebuying milestones online, such as scheduling appraisals, inspections, and closing appointments online. Zillow found that 39% of Millennial and 36% of Gen Z consumers would be comfortable purchasing a home entirely online (compared with 19% of Gen X and Silent Generation consumers).
In addition to improving customer experience, bankers who sell mortgage assets will benefit from cleaner, more accurate data as they automate more processes.
“Mortgage originations are cyclically projected to decline for the next couple of years for a few reasons,” said Brian Anderson, principal and senior director at Nationwide Ventures. “So it’s going to put a lot of pressure on financial institutions and mortgage bankers and so on to create good experiences, invest in technology and great, great files.”
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Employee Of The Month
"Congratulation to Tali for winning Employee of the Year! Tali has had an amazing year at Blue Streak Docs. From the second she was promoted to her position as the Assistant Manager in our Title’s department, she showed that she was one of the most driven, reliable, consistent, and motivated team members we have. The entire Title’s department loves her . She is always so willing to help anyone no matter what the task is and has always worked so well under high amounts of pressure. Even when we were at our busiest, Tali never let that get to her. She always had a smile on her face and worked countless amounts of overtime, helped with production at any given moment, and always worked to come up with new ideas to keep the team motivated and successful. When the position of Training Manager opened up, there was no doubt that Tali was perfect for it. Tali has really hit the floor running in her new role and just in the short amount of time she’s been in this position, she’s already shown so much care in wanting to help each trainee learn all they need to know in the most efficient and accurate way to totally set them up for success and be the best they can be in their permanent position. Trainees are already raving about how patient Tali is and how great she is at explaining things so they fully understand what they’re learning. Tali displays so much kindness, happiness, determination, willingness, and care every day, and these are just some of the many reasons why she’s our employee of the year!"