The MReport Webcast: Tuesday 8/11/2015

With the costs of originating and servicing a mortgage at record highs and customer satisfaction rates at all-time lows seven years after the financial crisis, the Collingwood Group contends that the mortgage industry is ripe for disruption, according to a white paper released Monday.

With no fundamental changes to the origination process in decades, the lost efficiency, increasing costs and decreasing profits, combined with ever-merging regulatory hurdles, have left a gap in the mortgage industry to be filled by disruptors, who are innovators creating new business models to better serve the industry. The new innovators describe themselves as technology companies providing business solutions from the customer's point of view, as opposed to incumbent lenders who view themselves as mortgage companies who use technology as a business requirement.

Normalizing housing market conditions such as home sales increasing, prices rising, credit access easing, and private capital gradually returning appear to be eminent signs of a full recovery. However, contradicting data such as tight credit, high delinquencies, and taxpayers still backing most of the mortgage market reveal otherwise. Urban Institute addressed the looming questions surrounding the housing market health, determining that no single indicator can gauge market health and it is far from healthy levels reached in 2001.