2020 has been an amazing year for the mortgage industry, with rates hitting record lows. 2021 too is likely to see low rates with Fannie Mae predicting that average rates for the 30-year fixed loan will remain at 2.8% through 2021 and only rise to 2.9% for 2022. Of...
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CFPB recently released rules that revamp and expand its standards for what counts as a Qualified Mortgage, swapping out an old debt-to-income limit and introducing a new subcategory of seasoned loans. Mortgage lenders can opt into the new QM as early as 60 days after the rule is published...
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The Covid-19 pandemic forced most industries to innovate and find new ways to ensure business continuity. In response to social distancing measures and recommendations to not gather in large groups, turning to digital tools was the way out to keep some semblance of normality. While the pandemic accelerated the...
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Mortgage processing is considered one of the most complex financial processes undertaken by banks and financial organizations. Several key challenges arise in such a complex and heavily regulated process. If not properly addressed, it can significantly impact the efficiency of mortgage processing. If lenders are aware of these challenges...
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According to Black Knight’s Mortgage Monitor report, 2.4 million out of 6.1 million homeowners who have been in COVID-19 related forbearance plans have exited. And it appears that the remaining 3.7 million might have a longer path to exiting forbearance, which might seem like good news. After looking at mortgage...
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Mortgage origination has all along been a human-intensive and time-consuming process where it takes 35 to 40 days to close a loan. Despite a lot of talk and work on digital mortgages, a bulk of the activity still is manual with multiple checkpoints for compliance. In recent times, low...
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An old adage states that it is cheaper to retain an existing customer than to source a new one. For years, mortgage servicers have tried to do a better job of retaining borrowers in their portfolio, but lately, for many, the efforts have been futile. Servicers generate revenue by...
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It’s clear that the servicing industry is continuing to place a laser-like focus on improving and controlling the borrower experience when servicing loans. The number of distressed borrowers in need of a mortgage loan modification is increasing every passing day due to the increase in mortgage delinquency. With high...
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The coronavirus pandemic has put mortgage servicers to the test, with record-low rates, skyrocketing unemployment, and rising delinquencies creating a surge in forbearance requests. The pandemic has really amplified the gaps in customer satisfaction, digital experience, and call-Center experience that have been a challenge for mortgage servicers for some...
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As per WSJ reports, “the current recession has made it particularly hard to determine who is creditworthy: Millions of Americans are behind on their debts and opting for forbearance plans. The type of consumer that has been impacted by COVID-19 is not the traditional default consumer. It is a customer...
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