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Independent mortgage brokers upbeat about first-timers

NEW YORK – Oct. 20, 2016 – The Lenders One Cooperative – a national alliance of independent mortgage bankers, correspondent lenders and mortgage product suppliers and services – polled participants at its annual summer conference on key trends in the mortgage industry. Overall, most (58 percent) are concerned about the impact of the November presidential elections, but they’re optimistic about the rising influence of first-time homebuyers.
Despite the uncertainty an election year brings, 66 percent of respondents believe first-time homebuyers will offer the greatest opportunity to drive business growth in 2017. The second greatest opportunity lies in increasing rental prices that are pushing buyers to purchase homes instead of continuing to rent (20 percent).
On the flip side, 39 percent of respondents believe that higher interest rates could have the greatest negative impact on the mortgage industry’s growth in 2017.
Consumers demand technology innovation
The survey suggests that borrowers want more online and/or mobile access to information to improve the loan process, according to nearly half (47 percent) of respondents; and 64 percent believe adopting new technologies would help lenders stay competitive in an increasingly commoditized industry.
TILA-RESPA Integrated Disclosure (TRID): One year later
TRID went into effect on Oct. 3, 2015, and lenders have now had a year to understand TRID’s impact on the loan process.
The majority of survey respondents (58 percent) identified the top TRID-related challenge as process and workflow changes concerning loan estimate delivery (within three business days). Consolidation of existing documents into the two new disclosures (loan estimate and closing disclosure) was also a concern for a small number of respondents (8 percent).
“While the mortgage industry is often adjusting to regulatory and compliance uncertainty, the issues around TRID have become clearer, enabling lenders to proactively manage workflow challenges and set strategies to better meet consumer needs through technology integration and innovation,” says Bryan Binder, chief executive officer of Lenders One.
Market pulse heading into 2017
When asked to characterize the housing market for 2017, most respondents (64 percent) anticipate a modest to heavy sellers’ market:
Heavy buyers’ market (9 percent)
Modest buyers’ market (27 percent)
Modest sellers’ market (43 percent)
Heavy sellers’ market (21 percent)
© 2016 Florida Realtors®  
Source: Florida Realtors Feed

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