A webinar by Origence discussed the possibilities of growing mortgage lending digitally during these uncertain times.
“Nobody really knows for sure … of where the mortgage industry is going and what the full effects of the pandemic are going to have on our industry,” said Andrew Weiss, VP, Platform Strategy, Origence.
He noted despite interest rates being near-record low, purchases are struggling, and servicing will be hit very hard. However, he said the outlook for origination is “less clear.”
“Is it going to be a short-term blip and then a robust recovery? Or is it going to be a long-term problem? Nobody really knows,” Weiss said.
Freddie Mac’s latest Primary Mortgage Market Survey revealed the average interest rate for a 30-year fixed-rate mortgage came in at 3.28% on May 14. This is essentially unchanged from the prior weeks 3.26%.
He added that lenders in today’s environment need to prepare themselves to do a full volume of business digitally, and “you have to think about the challenges that have been brought on.”
Weiss said the mortgage industry has lagged behind most of society when it came to using technology, adding the “bar has been set very high” when it comes to using technology, mentioned companies like Carvana that allow consumers to buy cars without ever seeing them.
“The mortgage industry is a little more like 1990 before the interest was so pervasive than it is 2020,” he said. “Hoping this pandemic will be the catalyst for change.”
During the webinar, Weiss asked those in attendance their thoughts on the share of buyers beginning the application process online. Of those polled, 37% said more than 75% of borrowers start the application process online.
“We’re clearly seeing … most borrowers are starting online,” Weiss said.
To hear more from the webinar, please follow this link.