Market Trends of North America Mortgage/Loan Brokers Industry
This section covers the major market trends shaping the North America Mortgage/Loan Brokers Market according to our research experts:
Increase in Digitization in Lending and Blockchain Technology is driving the market
The COVID-19 pandemic caused a significant increase in sales of about 31%, which led to an increase in revenue generation as a result of a significant shift toward digitalization. Currently, thanks to technological advancements, every domain in the virtual world have grown. Lenders and borrowers were forced by the pandemic to reassess the best ways to run and conduct their businesses.
Blockchain technology has been hailed for a few years as one of the possible solutions. Mortgages will increasingly move online thanks to Blockchain technology, where smart contracts and decentralized ledgers will make mortgage transfers quicker, safer, and more affordable. To increase client financial information accessibility while safeguarding borrowers' credentials, large financial institutions are increasingly working with data aggregators.
RefiNow’s Eligibility Expansion to Drive Mortgage Refinance Volume
The eligibility requirements for borrowers for the RefiNow and RefiPossible programs from Freddie Mac and Fannie Mae have been widened by the Federal Housing Finance Agency (FHFA). Before, applicants for these programs had to have an area median income (AMI) of at least 80%. This cap is increased to 100% by the most recent FHFA notice. By these initiatives, lenders are required to grant borrowers a USD 500 credit if an appraisal is necessary to determine the worth of their home. Paystubs and a year's worth of personal tax returns are required to verify the income of the borrowers.
These schemes, which guarantee a 0.5% reduction in the mortgage interest rate, are anticipated to encourage the refinancing of existing mortgages.
