The Reshaping of Mortgage Opportunities

According to the Mortgage Bankers Association, mortgage originations will reach more than 2.5 trillion dollars each year for the next three years beginning in 2022. This is a forty percent increase in annual originations since the years between 2010 and 2019.

The importance of being able to process a mortgage in a fast-paced home market where the supply of homes is not keeping up with demand is being met with the adoption of technology. This technology is helping to process parts of origination, underwriting, and loan servicing in order to expand the availability of time to the home purchaser for a more personalized experience. An advisor and the time that advisor can give is always one of the most important parts of selecting a home mortgage company in my experience.

The first way that technology is helping so that time is more aptly appropriated to the people is through the modernization of steps for document extractions and income and asset verification and compliance. Many companies offering mortgages are still engaging in labor-intensive and repetitive requests for documents needed for the mortgage process. Time delays are just one of the costs to the borrower when this happens. You have a right to know the expected timelines that a mortgage company will utilize at the start of the process. Make sure that you ask your advisor about this timeline.

The second wave of technology stems from the number of mortgage companies that focus solely on mortgages. Five years ago, banks accounted for fifty percent of the mortgages originated. Two years ago, banks only accounted for forty percent of originations. And most recently, banks are accounting for thirty percent of mortgages originated. The technology that companies like Finance of America utilizes allows home shoppers to be more competitive in shopping for a home. In some situations, borrowers may be enabled to make a cash offer through some tech-enabled financing from some lenders.

The third technological assist that is helping mortgages to process quicker is the bundling of some of the home services required to process a mortgage. Here in Vancouver, we have worked together among many reputable services for home searching options, warranty and inspection services, title and escrow services as well as movers and even insurance. Research from the National Association of Realtors indicates that 95 percent of home buyers welcome a one-stop shop process.

At Finance of America, we are always looking for opportunities to improve borrower experiences in a quickly changing environment. We are watching the Miami mortgage market as some companies are gearing up to offer crypto mortgages this year. Crypto mortgages are set up similarly to traditional mortgages and are lent out to home buyers in dollars, but are meant to appeal to people who have large crypto holdings that they don’t want to convert to dollars. The problem that the crypto companies are experiencing is logistics. Yet there is a real estate developer in southern Florida that reports to have accepted $20 million in cryptocurrency payments in the preconstruction purchases of condo units.

As always, be sure to find a licensed advisor that you know will answer your questions as well as will be there for you for the duration of your home ownership. Call 360-607-9312 or email MPattullo@FinanceOfAmerica.com for help achieving your home ownership goals and to find your best mortgage options. We have the answers that will serve you for all of your life in your home. We are your local advisor.

We lend where we live,
Mike