If there’s one thing that the real estate and financial industries have in common, it’s that they’re constantly evolving. Throughout the pandemic, we’ve seen incredibly low interest rates, huge disparities between demand and supply, skyrocketing home prices, and a huge jump in refinance originations. It was a test of agility for all of us.
So what should you be prepared for in 2022?
According to Mike Fratantoni, Chief Economist at The Mortgage Bankers Association (MBA), interest rates are on the rise, and the effects will be felt industry-wide. The largest change being a massive 62% decline in refinance originations. Unfortunately, the predicted 9% increase in purchase originations is nowhere near enough to offset that loss.
Across the board, the MBA estimates that we’ll see a 33% decline in mortgage originations. As the market shrinks, you’ll have to work even harder to earn your share. We know where you should start.
When strategizing for 2022 and beyond, make sure you factor in a significant investment into digital and mobile tools. A streamlined and comprehensive digital suite will be one of the largest differentiators in the mortgage purchase business.
Our reasoning is simple: Millennials
Millennials—the first generation to grow up with mobile phones in hand—have put off marriage and buying a home longer than any generation prior. But as they hit their 30’s, they’re beginning to take that home-buying plunge, creating one of the fastest-growing segments in real estate.
It’s no secret that millennials are attached to their cell phones, but did you know that 98% use mobile banking applications? Gen Z tops them with a whopping 99%, meaning online and mobile banking will only become more important as these generations age. Think about it, when was the last time that you actually visited a brick-and-mortar bank?
Due to the pandemic, many homebuyers experienced a digital mortgage origination process for the first time, and unsurprisingly, they liked it. According to Forbes, lenders who offered an online application process received 50-80% of their applications through their digital portal. For the generation who grew up alongside Amazon Prime, the lack of digital options could cause them to shop for mortgages elsewhere. Instead, you should meet your borrowers where they are.
So even though in-person services have become slightly more acceptable after the rollout of vaccines, re-evaluating your digital tools should still be a priority. Consumers have seen what we’re capable of when forced to go digital, and they’ll expect that (and more) moving forward.
Don’t stop at simply checking balances and online payments. Dream big. Consider how you can improve direct communication between borrowers and their point of contact within your lending organization. How about implementing an internal tool that allows employees to manage leads and accept loan applications? What about a tool that allows your team to manage the entire origination process from their iPhone or iPad? The possibilities are endless. But if the software you use doesn’t serve your employees, your customers, your referral partners (e.g. real estate agents), and your leads, you’re definitely missing out on true optimization and growth.
This is where StreamLoan comes in. At the front end, StreamLoan’s digital solution makes the mortgage application process easy, fast, and accessible for borrowers. Forget faxed (or even emailed) documents and long, in-person meetings with hundreds of wet signatures. With our platform, borrowers can use their smartphones for applying, signing, and everything in between.
On the back end, your employees will find a consolidated and easy-to-use platform where they can manage leads and referrals, as well as accept loan applications and direct message current clients. By improving communication and collaboration, our clients see a 20% increase in efficiency on average.
If you’re unsure where to start, check out our blog: Five Ways to Evaluate Your Digital Mortgage Origination Process.
The StreamLoan Solution
Looking to realign your sales effectiveness with a smarter digital mortgage origination process?
StreamLoan helps mortgage lenders attract more applicants, provide a better applicant experience, and automates collaboration among lenders, borrowers, real estate agents, and other counterparties .
StreamLoan offers mortgage lenders a private-label app delivered as a mobile-first and fully responsive web, B2B SaaS workflow platform to automate the end-to-end process.
Learn how our platform can drive value to your top and bottom lines by requesting a demo today.