Mortgage Industry Trends

Know Your Millennial Customer

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millennial-women-finance-FHA-mortgages-men-Did you know that more Millennial women than men made FHA financed, primary home purchases in 2016? This was reported by Ellie Mae based on information obtained from their Millennial Tracker Report. Who knew such a tracking mechanism existed, but obviously it does.

Based on the report, the use of FHA financing to purchase their primary home was:

  • 41% of single Millennial women
  • 38% of single Millennial men
  • 35% of married Millennial women
  • 28% of Married Millennial men.

In both categories, single and married, more Millennial generation women used FHA financing for their home purchase than men. But, what does this mean?

From my perspective, it means that Millennials are starting to purchase homes and whether women or men, that’s good news for everybody.

Further, these borrowers are no slouches. The average FICO score among all Millennial home buyers, in December, was 746. Considering all the concerns about student loan debts it seems these Millennial are doing okay managing their finances.

Also, they are smart! They are taking full advantage of the FHA financing because of the low down payment requirements.

Millennials are a new generation of home buyers. They want their share of the American dream and are very careful about how they go about obtaining it. They are highly educated and technology savvy.

They expect high-quality service with ease of application, communication, and closing. They are not your grandfather’s borrower. (No offense to any grandfathers. I am proud to be one).

So, educate your originators and staff to know your customers, what they want and how to best service their needs. No matter woman, man, Millennial or Baby Boomer; they are all potential customers. Serve them well and you serve yourself.

Michael Vitali

About the Author

Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.
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Michael Vitali

About Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.
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