Key Takeaways for Mortgage Loan Officers - MBA CREF21

By inflooens on March 22, 2021

key takeaways for mortgage loan officers

 

Professionals need opportunities to connect at common forums, and the same goes for people in the Mortgage Industry. This has never been more true before, as we have struggled in being isolated for the better part of the last year. Conferences provide a great platform for industry peers to meet and share ideas, network, find solutions to industry issues, and gain new information from different parts of the country or the world. One such event for the Mortgage Industry is the Mortgage Banker’s Association Commercial Real Estate Finance Conference (MBA CREF). This year it was held as a 2-day online event on 3rd and 4th February 2021. It was also interesting to see the conference combined with the MBA's annual Commercial/Multifamily Housing Servicing and Technology Conference. Needless to say, with big names from the mortgage industry involved, there are important takeaways for Mortgage Loan Officers and stakeholders in the industry. Let’s look at some of the key discussions from the event.

Useful information for Mortgage Loan Officers

The two-day virtual conference saw lenders, investors, and servicers discussing challenges facing the mortgage industry, tax changes, GSE reform, affordable housing, and other legislative and policy matters.

Inclusive Lending

Diversity, equity, and inclusion was the theme echoing in the conference as MBA Chair, Susan Stewart said expanding minority home-ownership and affordable rental housing “is the single best way” for the mortgage industry to combat injustice and build strong communities. Minority lending is a big discussion as it is associated with higher GDP, with even President Joe Biden calling for more equity in lending. Accessibility to housing loans and home-ownership for groups with limited affordability will also open up new markets for lenders and help in expanding the horizon for the mortgage industry. These potential home-owners are typically underserved and face an uphill task when applying for a mortgage.

financial inclusion is good for the economy

Image 1: Financial Inclusion is Good for the Economy Image Source: https://blogs.imf.org/2020/07/01/digital-financial-inclusion-in-the-times-of-covid-19/

With the rise of FinTech lenders, the gap is gradually closing and it has drawn the attention of the mortgage industry to this previously untapped section of the market. FinTech providers not only are capable of better service with tools like some of the best Mortgage CRM platforms but also make applications easier with more elasticity. This is because mortgage loan officers and lenders utilizing technology such as Mortgage LOS Platforms have higher profitability, as has been discussed in our previous blog. These platforms allow them to leverage intelligent mortgage pricing systems and business intelligence and cater to borrowers more efficiently including those with low access to finance.

Suburbs over Cities

This trend has been in the coming for some time now and the COVID-19 pandemic has accelerated this move. More people shifted to suburbs because of a lower cost of living and housing prices as the market saw a slowdown last year. The trend drove up prices for single-family homes in suburbs and actually fuelled the mortgage industry. Experts suggest that the trend could continue in areas where the cost of building houses is low and may not hold for a longer time in high-cost areas.

Such trends are important for mortgage loan officers to understand to cater to potential borrowers with informed advice. Some of the best mortgage CRM platforms, like inflooens, have features for predictive analytics built-in. These help in forecasting market trends based on data and also allow lenders to relay the information to all mortgage loan officers across markets at once. Trend prediction is not limited to the macro-level and can be used to the level of individual customers during the loan application and origination process. Such tools keep ground teams updated and enable them to provide better customer service.

Mortgage Industry and Technology

Micheal Evans, Executive VP at Fannie Mae, said at the conference that, “We’ve got to be in a situation where we are constantly thinking about the data. Anything we can do to think about the digitization of data is going to allow us to be able to do our jobs better and continue to build our ability to be more resilient in the data.”

It seems that the world is running on data and the mortgage industry is one of the important generators and users of data technology. With a global fintech market estimated to reach $305 billion by 2025 and 3 of 4 customers using fintech services, technology in financial services is here to stay. Though the industry has been slow in adopting technology like mortgage CRM and LOS, conventional systems are now being left behind for reliable and efficient platforms that can provide an array of benefits. To know how technology is disrupting the mortgage industry read our earlier blog. Technology has enabled faster processing, less documentation, and higher profitability for lenders. FinTech startups, like inflooens, are providing the best mortgage CRM platform solutions that help all stakeholders from mortgage loan officers to customers and decision-makers in lending institutions.

fintech market statistics

Image 2: Fintech Market Statistics

Looking Forward

Looking at the discussions at MBA CREF21, it is clear that technology can be a major factor in solving pain points for the mortgage industry and mortgage loan officers. Lenders should rely on the best mortgage CRM platform like inflooens for their fintech needs. The next MBA CREF conference is set to take place in San Diego from the 13th to 16th of February.