5 mortgage fintech developments in the news

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While the mortgage industry has been slower to adopt many technologies than other industries, there is no shortage of activity among lenders and fintechs developing new tech to make the lending and other processes more efficient.

From Bank of America launching its own accelerator focused on pre-seed fintechs with diverse founders to mortgage lender Guaranteed Rate branching out to offer home, life, auto and other insurance coverage via a brokerage spinoff, here are five fintech stories the industry is watching.

BofA accelerator targets pre-seed, diverse fintechs

Bank of America has joined the ranks of financial institutions that offer fintech accelerator programs with the launch of Breakthrough Lab, which aims to work with startups from diverse and underrepresented communities.

"We're excited to play a role in giving emerging entrepreneurs from a range of backgrounds access to the bank's vast resources and industry networks," said Rina Arline, the director of the Breakthrough Lab program.

The annual six-month program, which starts in September, will give the entrepreneurs access to senior-level mentors at the bank, who will provide advice on topics, such as partnering with larger firms and pitching their product.

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Bank of America launches its first fintech accelerator

Despite availability, lenders hold fire on new tech

Consumers want it and the technology exists to create it, but lenders remain cautious about using the latest tools to speed up the mortgage loan process, according to panelists at the Fintech Nexus USA conference.

Traditional lenders recognize the need for a faster loan process, but are concerned about compliance issues and hesitate to rock the boat. In contrast, their tech startup rivals are more open to driving disruptive change.

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Using new mortgage tech 'nearly impossible' for many, exec says

Student loans stay top of the agenda for SoFi

Diversified neobank SoFi will continue to be in the student loan and home lending businesses, although they are beset by the suspension of the federal government's student loan forgiveness program and the tough economic climate, respectively, said CEO Anthony Noto.

"As long as college education in the United States is not free, there will be a student loan market," said Noto. "It's never a question in our mind whether we're going to be in the business. It's just a question of, 'What are the actual products, and how do we best meet the member's needs?'"

Noto's commitment to student lending comes at the same time as the company dives deeper into the mortgage market with the acquisition of mortgage lending fintech Wyndham Capital Mortgage in a bid to redress its ailing home lending business.

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SoFi will 'always' stay in student lending, despite challenges: CEO Noto

Guaranteed Rate adds insurance to lending offering

Mortgage lender Guaranteed Rate is now offering home, auto, life and other insurance coverage as part of its home financing application process via its insurance brokerage spinoff, Guaranteed Rate Insurance.

"This platform is another example of how Guaranteed Rate Insurance is driving fintech innovation," said Jeff Wingate, vice president and head of insurance at the firm.

Applicants can currently obtain coverage from more than 50 carriers on GRI's digital insurance marketplace, with additional insurance products and carriers in the works.

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Guaranteed Rate's digital marketplace built on AWS and APIs

Financial crisis may inadvertently aid fintech investment

The funding woes of mortgage fintechs are likely to get worse before they get better following the recent financial crisis in the banking industry.

"I think almost every venture capital firm has a bank account at Silicon Valley Bank, and if they can't get their funds, they're not investing tomorrow," said Jason Harris, CEO at lending platform Button Finance.

However, the thirst for technology innovation in the mortgage industry may make this the right environment for new investment opportunities to emerge.

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Banking crisis adds to funding challenges at mortgage fintechs