COVID-19 pandemic drives growing fintech demand
In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses how social distancing has spurred a growing demand for digital mortgages.
For some background on the story, here’s a brief summary of the article:
With the COVID-19 pandemic discouraging or entirely halting in-person meetings with lenders and appraisers, the adoption of digital mortgages has accelerated. Advances in technology have stepped up to address the stickiest non-digital segments of the mortgage application process.
The current situation has added fuel to a decade-long trend among banks and lenders to provide more and better digital products and services. For mortgage lenders, that means offering as much of an end-to-end experience – underwriting to approval to closing – as possible for prospective borrowers. This has grown from an electronic application to include more complex parts of the process, such as notarization and identification, employment and income verification, even inspection and appraisal.
At the same time, digital mortgage technologies – especially advances in video applications – have evolved enough to successfully balance borrowers’ need for speed with a human touch. Complex steps that often require human interaction, such as explaining final loan documents or understanding mortgage terms and options, can increasingly be done digitally.
As COVID-19 has complicated or discouraged homebuying, it also accelerated existing trends in mortgage lending. Those lenders that have already invested significantly in developing sophisticated and proven online and mobile solutions sit in the best position to benefit from the shift.
Following the main story, HousingWire Digital Producer Alcynna Lloyd covers an extended foreclosure and eviction freeze from Freddie Mac, Fannie Mae and the Department of Housing and Urban Development, a partnership between J.P. Morgan Asset Management and American Homes 4 Rent to build thousands of new rental homes, and Freddie Mac’s weekly Primary Mortgage Market Survey.
The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.
HousingWire articles covered in this episode: