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All the big hitters from the mortgage community gathered this week in Boston to discuss and learn about what’s happening in mortgage lending and where do we go from here. In the opening session, the theme was set.
The economy is improving (or so they say) and the outlook for housing and mortgage lending is strong. In fact, in the words of David Stevens, MBA’s CEO, the economy is better than it’s ever been. Wow, that’s some statement. So, what do we lo
ok forward to in 2017 and beyond?
According to outgoing Chair Bill Emerson, CEO of Quicken Loans, there are 3 main areas for which lenders need to be prepared:
1. More Technology
2. Diversity in Lending
3. Regulations
The need for technology is evident. To continue to compete and make money, lenders needs to streamline operations and reduce the time and costs to originate loans. This is evidenced by Fannie’s Day 1 Certainty announcement. These innovations will expedite applicant information verifications while providing rep and warrant relief to lenders who use it.
Lenders need to be prepared to service the needs of a myriad of consumers from all walks of life and all ethnic backgrounds. Many of them do not use English as their primary language. How will lenders communicate and service these buyers?
Millennials are now starting to enter the housing market. They expect online, real-time access to information and applications. They will not stand for the traditional paper-laden loan approval and closing process. Do you have the technology needed to satisfy their expectations?
Regulations present the wild card. Lenders can create or adopt technological solutions to streamline the process and to service the needs of expectant home buyers, but they cannot control CFPB and the regulations they believe are required to better protect consumers.
This is an area where the industry must come together and work with our elected officials to help them understand the effects of over-regulation. This task may be a little tougher than the other two, but in the end, it just may be the one that will pay the biggest dividends.
For this reason, it is so important that lenders not only get heavily involved in the advancement of technology and in what is needed to continue the growth and advancement of the industry, but also to get out and vote in the upcoming elections. Vote for the candidates, at every level, that you believe will do the most to improve the economy, create jobs and improve wage growth, while limiting the regulatory burdens that stymie progress.
Vote responsibly my friends.
