When ServiceLink asked borrowers to name the biggest benefit of technology in the homebuying process, 72% said convenience and ease-of-use. Borrowers are also happy to self-service and interact digitally. And as Millennials and Gen Z enter their homebuying years, technology becomes even more important.
For today and tomorrow's borrowers, the traditional mortgage experience falls far short of expectations. There are multiple documents to sign—some in-person—and lots of waiting. And waiting. And borrowers often have no idea where their application is in the lender's pipeline or if they'll have to fulfill any last-minute requests.
It has been widely reported that the housing market is in a recession. Though prices remain high, sales of existing homes were down 30% as of August 2022, as were sales of new homes. Historically, housing declines are harbingers for recessions, but is a recession imminent this time?
More than half of homes in the U.S. are at least 20 years old and likely in need of upgrades. According to a recent Freddie Mac survey of potential renovators and homebuyers, although most hold positive attitudes toward renovating, financial cost, emotional barriers and a lack of knowledge about financing options can be significant obstacles. Lenders have an opportunity to provide more resources on the value of renovating as well as financing options such as renovation mortgages. Read more.
Rising interest rates and recession fears have created a challenging market environment for lending, making it hard to predict where the mortgage markets will trend.
American Banker's Most Powerful Woman in Banking, who is also wrapping a year's service as the Mortgage Bankers Association's first Black chairwoman, discusses closing the racial homeownership gap, rebuilding borrower trust and more.
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