RealKey’s 2021 Predictions for the Mortgage Origination Industry: Prediction #2
In our previous blog post, we revealed our first of three predictions of the trends and transformations that we believe will take place within the mortgage origination industry in 2021. Coming out of 2020, a year of unprecedented socioeconomic upheaval brought about by Covid-19, organizations have had to learn to shift gears on the fly and operate in a far more agile manner than ever before. The coming year will be one in which mortgage lenders, originators, and underwriters will be required to deliver digitally-driven experiences and achieve operational excellence in order to compete and survive. To succeed in this new era of digital disruption, companies must be ready and willing to harness new technologies that allow for greater efficiencies and enable differentiation within the home buying and refinancing process.
Our first prediction is related to the real estate market correction and new market creation we believe will occur in the coming months. Today, we reveal our second of three predictions as discussed below. We will post our third and final prediction next week.
More Demands on Brokers and Lenders Due to Continuing Low Interest Rates, which are Fueling Increased Home Sales and Refinancing Activity
The current housing bubble will continue for at least the next few months, until the economy supports increasing the current artificially low rates that are driving a record number of refinances and new home purchases. The spread of Covid-19 will likely slow down, but the effects the pandemic has already had on our daily lives will continue for some time. Many people will continue to work remotely for the foreseeable future, which has been a driving force for homeowners to move to more affordable housing in the suburbs. With rates continuing to remain at record lows, existing homeowners will increasingly look to refinance their home loans.
With both of these factors driving mortgage loan demand, MLOs and lenders will continue to face tremendous difficulty in keeping up — yet they will want to process as many loans as possible before rates increase again. As a result, they will need improved efficiencies in processing and closing loans so that they can close more loans with less time and effort.
With these factors as the economic and social backdrop for 2021, RealKey is positioned to play a key role in providing mortgage brokers and lenders with much faster, more efficient ways of handling the huge increase in demand, which helps them maintain a competitive advantage. Processing and underwriting efficiency is critical in these scenarios, and RealKey provides differentiated tools to close more deals, faster, and with less effort, while also reducing ramp-up times for onboarding new hires as needed.