January 2017 - The World's Local Bank

TheMReport — News and strategies for the evolving mortgage marketplace.

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6 | TH E M R EP O RT MTECH can be shared in real time from a single source—all vetted through compliance checks, audit logs, and proof built directly into the process. In short, it's faster to retrieve and update data, and it's easier to trust it as the compliance comes from the process rather than from manual inspection. Saving time means faster transactions and saving money all around. Transparency and accuracy means all parties—homebuyers, home sell - ers, banks, title companies, brokers, etc.—can feel confident in their data while streamlining the confirmation process. What's Next? It's clear that establishing a single shared database for the financial industry can provide many benefits to both industry professionals and home buyers/ sellers alike. In order to bring something like this to life, key players have to come together and work toward an infrastruc - ture that can make it happen. Fortunately, blockchain companies are pushing this technology to the forefront across industries, bring- ing integrity used by the financial industry into areas such as gov- ernment and medical records. The technology is there; the next step is up to the real estate industry to come together and move forward. Fannie Mae: 'Significant Opportunity' Lies in Mobile Technology DEMAND FOR USAGE OF MOBILE MORTGAGE PRODUCTS HAS NEARLY DOUBLED OVER THE PAST YEAR. M obile technology has be- come increasingly popu- lar with homebuyers, according to a survey conducted by Fannie Mae, which found that demand for and usage of mobile mortgage products has almost doubled over the past 12 months. The survey covered 1,200 low- to moderate-income homebuyers who have bought homes in the last year and have a mortgage guaranteed by Fannie Mae. "This is a startlingly large increase reflecting the perva - sive and growing use of mobile technology among consumers at all income levels," wrote Steve Deggendorf, Director, Market Insights Research, Fannie Mae. "Although this research focused on low- and moderate-income homebuyers, our prior research suggests the results would be even larger for mobile usage and interest among higher-income consumers." Fannie Mae suggests, based on research, that interest in these products will only increase among consumers in the coming year, particularly among first-time buyers and younger consum - ers with a college education. Fannie Mae's Mortgage Lender Sentiment Survey, covering the third quarter of 2016, noted the growing number of lenders that were making mobile apps part of the process. Deggendorf said there is "significant opportunity" for lenders to meet demand in this space because future interest in conducting mortgage activity via a mobile device is much higher than current interest. "Though some lenders have begun building out the mobile experience for consumers, all lenders should evolve their online and mobile capabilities to address the rapidly changing consumer demand, as well as the potential for competitive shifts," Deggendorf wrote. "The potential for the competitive repositioning in the broader mortgage market value chain is high, maybe much higher than in many years, as next-gen - eration technologies and providers focus on offering exciting mobile opportunities to improve the consumer experience through digitization and by removing inef - ficient manual processes." Regulators have taken notice of the way the mortgage industry has come to more fully embrace mobile technology in the last year as the needs of consumers have changed. Comptroller of the Currency Thomas Curry, in a recent speech in which he an - nounced that qualifying financial technology (FinTech) companies that offer banking products could choose to receive a special-pur - pose national bank charter if they wish, noted that consumers want "better, faster, more-accessible products and services, and they are willing to switch providers or use multiple providers to get what they want. These consumers expect to be able to transact basic banking and financial business anywhere, anytime, from the palm of their hands." To illustrate just how lenders are embracing a more technology-based approach to meet the changing needs and demands of consum - ers, look no further than Quicken Loans. Last year, the Detroit-based lender created a "Rocket Mortgage" program, which the company bills as "a fast, powerful, and completely online way to get a mortgage" with a slogan that says simply, "Push button. Get mortgage." A commer - cial for this program, which aired during the Super Bowl in February, generated considerable contro- versy on social media but was also widely praised. OpenClose Announces Enhancements to ConsumerAssist Solution THE UPDATES ARE AIMED AT MAKING THE APPLICATION PROCESS EASIER FOR CONSUMERS AND INCREASING LEAD GENERATION FOR LENDERS. Florida-based enterprise class, multichannel LOS OpenClose announced enhancements to its borrower-facing ConsumerAssist solution, with the goal of increas - ing lead generation for lenders and providing borrowers with a supe- rior loan-application experience. Consumers will receive a straightforward, interactive customer experience with the enhancements to ConsumerAssist, according to OpenClose. ConsumerAssist can be accessed from any mobile device at any time from anywhere, providing portability and accessibility, which ultimately results in increased leads and reduced production costs to lenders. ConsumerAssist triggers real- time alerts to lenders for quick follow-up by a loan officer or customer service representative after the borrower completes an application, thus allowing the lender to engage the borrower immediately and begin the sales "All lenders should evolve their online and mobile capabilities to address the rapidly changing consumer demand, as well as the potential for competitive shifts." —Steve Deggendorf, Director, Market Insights Research, Fannie Mae

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