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Three emerging trends transforming mortgage lending


Perspectives of the Banking CIO | Saturday 03 April 2021

To meet the growing demand from borrowers, big banks and lenders are using new methods. Independent brokers, on the other hand, find it quite difficult to keep up with the competition.

Frémont, California: Many smaller lenders and brokers implement their own technology or white label through collaborations, much like the larger players. Whichever direction they take, mortgage brokers must learn to appreciate technological advancements in the mortgage process or lose customers to businesses ready to change.

Here are three emerging trends in mortgage lending:

Simplified user experiences

Borrowers, especially millennials, care more about easy paths to desired results. While it can save them money, the majority of borrowers don’t like wasting time looking for mortgages. Brokers should be ready to welcome consumers who are ready to buy immediately, with new technology that allows them to make quick and informed decisions.

Top 10 Mortgage Technology Consulting / Services Companies - 2019These developments herald a new era in the mortgage industry for brokers. Higher demands will result from advanced technology, and only brokers who are familiar with the emerging world will be able to compete.

Fully digital mortgage platforms

Most consumers will soon be able to complete the entire mortgage process without ever having to set foot in an office, thanks to new tools and protections. APIs can communicate between systems such as escrow, title and more on digital mortgage platforms. Borrowers will close loans in days, not weeks, and brokers who refuse to move quickly will become fired.

This does not mean that brokers will be completely eliminated. Mortgages are big purchases, and people need help with the process. Simply put, brokers should determine their place in a transformed mortgage environment.

Advanced predictive technologies

Most modern innovations are limited by the skills of the people who use them. The technologies of the future will know how to manage. Consumers should expect a new level of convenience through machine learning, artificial intelligence and blockchain Technology.

Soon, artificial intelligence would be able to notify brokers when borrowers are ready to act. Instead of waiting for borrowers to contact them, brokers should know when to contact them. Borrowers could close mortgages in less time thanks to blockchain’s open ledgers and more secure processes.

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