Generative artificial intelligence or gen AI had its breakout year in 2023. While overall AI adoption holds steady at 55%, over 2 in 3 companies are planning to pilot gen AI technology. This is because of its incredible versatility, putting it at par with once the internet and more recently the cloud in terms of its business potential. Mortgage processing too is a prime candidate for gen AI metamorphosis given its data-intensive nature, providing plenty of material for gen AI models to train and learn. How Does Gen AI in Mortgage Processing Work? At its core, gen AI works by analyzing past inf ..read more

Real estate-owned (REO) foreclosures are among the most significant trends in the mortgage industry, especially in a strained market. It signals an economy where inflation and other market pressures are making it difficult for borrowers to make regular payments. High foreclosure volume is often a predictor of an eventual market crash, which is why it is so important to know what is REO foreclosure and how to keep its numbers in check. This is an especially critical concern for mortgage industry leaders in 2024, as we exit pandemic relief measures and battle a volatile post-pandemic economy on ..read more

As we come out of a turbulent few years, the mortgage industry – and the national economy as a whole – isn’t entirely out of the woods. Housing prices continue to remain high and changing home buying patterns among emerging demographics present new challenges. In this climate, lenders need well-articulated, technology-supported strategies to successfully navigate economic volatility, the risk of delinquency, and even rising foreclosures. 1. With more banks exiting, you stand to gain from less competition and greater profitability Challenging market conditions are causing many banks to exit the ..read more

Women have been historically disadvantaged when it comes to the US mortgage and housing sector, with American women not allowed to finance real estate purchases without a husband or male co-signer until the 1970s. Despite this, women have made massive strides in just five decades and today comprise a sizable portion of the home purchase industry. The women in leadership gap in the mortgage industry is also shrinking, although there is still a way to go in this direction. For International Women’s Day 2024, we bring you interesting and vital insights shaping the role of women in the mortgage se ..read more

Title companies are custodians of large amounts of sensitive data, from payment records and tax information to social security numbers. This makes it crucial to implement data loss prevention strategies that can act as a bulwark against cyberattacks. Worryingly, instances of cyberattacks against title companies are increasing. In a 2022 survey, 86% of respondents said that the volume of threats they have faced remained the same or grew in the last two years. The increased reliance on digital technology has contributed to this trend. Automation platforms, cloud data storage, and employee portal ..read more

A strong mortgage quality control (QC) function is essential for lenders not only for compliance risk mitigation – it also helps improve loan portfolio performance and inspires greater investor confidence. In the aftermath of the 2008 financial crisis, QC is deeply embedded in the industry’s regulatory framework. From the Fair Housing Act (FHA) to the Home Mortgage Disclosure Act (HMDA) and the False Claims Act, there are several regulatory prerequisites to bear in mind when evaluating a prospective customer for a mortgage. And, the compliance burden is steadily increasing – for example, Bank ..read more

As servicing costs continue their upward trend, businesses need to adopt mortgage process automation services from experienced vendors such as Nexval to offset the impact on their bottom line. This has never been as important as it is in 2024. In the last four years, the cost-to-service ($ per loan) has increased by over 9%. Servicing expenses for distressed loans are particularly high, going from $1,226 in 2020 to $1,994 in 2022. On top of that, the mortgage servicing rights (MSR) market is going strong, adding to servicers’ operational burdens. By taking proactive steps to drive servicing ef ..read more

As servicing becomes increasingly more digitized, there is a need to prioritize building a people-first digital framework. Already, mortgage servicing technologies like automation, chatbots, analytics models, and document management are transforming the lending process. Research published in The Review of Financial Studies shows that technology can speed up lending processes by as much as 20%. This has led to a dramatic uptick in interest in digital servicing solutions, with a specific focus on cognitive technologies. In this context, banks and non-banking financial institutions must invest in ..read more

2023 saw a significant increase in delinquency rates, with commercial mortgage delinquency, in particular, rising in December for the third month in a row. Changes in property market fundamentals and shifts in home buying patterns have resulted in the continued risk of high default rates in 2024. As a result, lenders must invest in proactive risk management in the servicing stage to manage their bottom line. Read More: 7 Factors to Consider When Choosing a Risk Management Platform Bear in mind that rising origination costs and staffing expenses are already adding to mortgage risks. Without p ..read more

As the mortgage industry gears up for 2024, it is vital to pay attention to the emerging trends of this year. As inflationary pressures ease, nearly a third of the American population expects mortgage rates to fall in 2024. This could lead to a rise in origination volumes, in stark contrast to this year. Digital mortgage platforms can help lenders maximize this opportunity. At the same time, loss mitigation measures are necessary so that businesses can keep pace with a dynamic economy. Here are the trends, technology movements, and potential threats for mortgage lenders to address in the next ..read more