Normally, we are loathed to share other peoples’ content, but this is worth an exception: 10 Bold Predictions for the Future of the Mortgage Industry (link to the full article is below)
The big takeaways include: Subprime and expanded guidelines are coming, so a lot more buyers can get financing. Technology will replace underwriters and loan officers. And appraisals will become obsolete.
Realtors will need to make sure their lenders have access to the latest technology and multiple lending channels.
10 Bold Predictions:
- Fannie Mae and Freddie Mac are not long for this world – other channels will replace “conforming loans.”
- Big banks will leave the market (like Wells did in the 1990s) as mortgages become less profitable.
- Brokers will return to the market as more channels open up.
- Subprime lending will return (but not as fast and loose as before)
- Loan guidelines will expand (so we don’t turn down borrowers with $3 million in the bank and perfect credit).
- Technology will replace loan officers (already happened at JVM)
- Technology and algorithms will replace underwriters (tried this before but the data was insufficient).
- “Crowdfunders” will NOT become a big factor b/c they can’t navigate the regulations.
- Regulations will force the adoption of e-mortgages.
- Appraisals will become obsolete, as automated valuation models become more accurate.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646