The Diverging Market
What Will the Mortgage Industry See?
Origination: Lending outside qualified mortgage rule may help lenders replace lost home refinances
Home purchase volume is expected to increase slightly but this trend will likely be prominent in 2018, as originators may continue to struggle to replace lost refinance volume and their compliance and risk management processes become more robust.
Cost Competition: Fannie Mae and Freddie Mac tech help lenders expand credit box
What this means to lenders and borrowers? Lenders will be able to improve the borrowing experience for home buyers and make full use of the credit box.
Mortgage Loan Service: Market Consolidation
Mortgage debt is expected to grow 4% in 2018, following the 3.2% growth in 2017. The largest residential mortgage services will get even larger, benefiting from consolidation and the outsourcing of service rights acquired by companies without their own platforms.
Always Room for Improvement: Technology and Automation will drive the digital mortgage advances
Digital mortgage technology as we all know is the current ‘buzz word.” It helps consumers take a more hands-on-approach to the mortgage process, lenders are stepping up their adoption of automation and learning through artificial intelligence abilities. Which means a fully end-to-end digital solution which is still in the infant stages.
What Valley West Mortgage strives to better the way we operate our mortgage business from start to finish, from origination to funding to servicing and keeping our clients happy.
Compliance and Regulation: Fannie Mae and Freddie Mac
Shifting policy stances and renewing focus on housing finance reform could make 2018 a breakout year for Congress to finally resolve the conservatorship which began on September 6, 2008. This conservatorship in response to the substantial deterioration in the housing market that severely damaged Fannie Mae and Freddie Macs’ financial condition.