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The New Originations Landscape

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Th e M Rep o RT | 17 Feature providing great customer service and utilizing technology to make the process of getting a mortgage more transparent and efficient," the CEO asserted. Brandt Schumacher also cites favorable changes in the lending environment for the return of nonbank lending. "A drop in rates increases af- fordability and opens up home- ownership for some additional borrowers," the Prospect COO explained. "FHA tends to be a first-time home buyer product, so the drop in MIP also increases affordability—again, driving homeownership to additional groups. This has nothing to do with whether the lender is a bank or non-bank. The growth in non-bank lending is not a result of non-banks' relative lending standards. For the vast majority of lending, all lenders are selling the same agency and government products—which dominate the U.S. mortgage market." Technology Pushes Nonbank Lenders Forward N onbank lenders tend to gain favor when mortgage markets and consumers regain their confidence. But attract- ing attention is contingent on a nonbank lender's willingness to leverage technology and embrace innovation before its larger competitors. This is one area where nonbank lenders tend to stand out from the competition, industry leaders claim. "Things will continue to evolve where technology will make it much easier for consumers," said Ciardelli with Guaranteed Rate. "They won't have to spend as much time talking to loan of- ficers, but they can do a lot of the work themselves with Guaranteed Rate. Our site gives consumers the control to choose their own rate, run their own automated under- writing approval, and securely upload their documents. This digi- tal tool puts consumers in control of their mortgage lending." Quicken Loans, which received several J.D. Power awards for customer service in mortgage originations over the past few years, considers tech-innovation a hallmark trait of competitive nonbank lenders. "We provide clients with industry-leading tools and tech- nology to make the process more user-friendly and efficient," noted Bob Walters, chief economist for Quicken Loans. "The MyQL app allows clients to check the status of their loan and submit docu- ments over their mobile device, and our technology platform helps get the majority of our clients closed in 30 days or less." Prospect Mortgage also sees borrowers leaning on nontra- ditional lenders as a means to obtain improved online capabili- ties and tech solutions. "Many lenders have been focused on tools that help them gain in productivity or market share rather than tools that truly help the bor- rower," Brandt Schumacher with Prospect added. "A strong web con- tent strategy that aids the borrower in understanding their options and the mortgage process is criti- cal. Web-savvy borrowers will seek out lenders that make it easier for them to make informed decisions about options like renting versus buying and different loan products." The Re-emergence of Nonbanks—A Risk Proposition or Just What the Market Needs? E ven when less traditional lenders draw fans with tech- nology, they still attract negative knee-jerk reactions from those who automatically equate this type of lending to weak lending. But professionals in the space shoot down the notion that their companies embrace excessive After A Mild retreAt, NoNbANks ANd less trAditioNAl leNdiNg PlAtforMs steP UP their gAMe By Kerri Panchuk Rob HiRt RPM Mortgage Raj date ethos Lending joe andeRson Caliber Home Loans

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