We’ve aggregated key takeaways from all September’s big events to help you stay well-informed on the latest trends and hot topics in the industry. September 2019 was a whirlwind of major industry events, including MBA’s Risk Management Forum, ABS East, Digital Mortgage 2019, the 2019 Five Star Conference and Expo, and ACUMA 2019 Annual Conference. We know you probably couldn’t hit them all, but keep reading to find out what you may have missed.
1. AI and automation driving change
The first technology automation hit mortgage markets 25 years ago, but there is still great potential to leverage automation and AI to facilitate improvements in process for borrowers and lenders. Nearly half of respondents at the Digital Mortgage Conference think AI will have the greatest impact on underwriting, while 24% anticipate a greater impact to customer acquisition. At ABS East, panelists discussed the demand for automation in the Broker channel, which has lagged behind the industry over the past decade. With the rise of Broker-focused tech, the wholesale-market share is expected to nearly double in the next year.
2. Greater investment in customer experience needed
Recent survey findings show borrowers expect a one-stop shop for buying, financing, improving, and selling their homes, and they want channels of communication to all parties – realtor, loan officer, contractor – to be digital. While consumers are demanding digital experiences, few in the financial services arena have developed and executed a complete end-to-end digital strategy.
3. Digital processes helping reduce risk
Presenters at MBA’s Risk Management Forum confirmed that mortgage fraud is on the rise – but advanced tech solutions are helping stop fraudsters in their tracks. Lenders and servicers are using loan data to identify and halt fraud schemes, proactively manage default risk and monitor portfolio trends.
4. Shifting real estate market trends
Lenders, realtors, iBuyers, lead providers, and Big Tech are competing and also collaborating to acquire and serve customers. Single-family rental and investment continue to evolve. Assets can be increasingly harder to come by, but rumor has it that REO could be on the rise.
5. Regulatory reform finally underway
Housing finance reform was top of mind, with the administration’s plan for GSEs and QM Patch being in the forefront of the discussion. Advocacy groups in the industry have called for changes to the QM framework prior to expiration of the QM Patch.
Although adoption of a new accounting standard does not exactly fall under the topic of Regulatory Reform, FASB’s CECL (Current Expected Credit Loss Model) is receiving a great deal of attention as the first wave of adopters are slotted to go live in January 2020. Presenters at ABS East discussed the impact of CECL, concluding that the Model will likely result in increased use of CRT and securitization.