With the drop in rates resulting from Brexit, we saw a resurgence of refinancing activity. This seemed to bode well for mortgage lenders, but not so for everyone.
A recent report from a la mode, a leading provider of appraisal software, shows that appraisal volume is actually down. Why so, with such low rates and so much refi activity? Could it be the application volume reports we’re getting are misleading as they don’t report multiple applications made with varying lenders or any fallout? Quite possibly.
So, that being the case with refi’s, and the possibility of a Fed rate hike, with housing prices increasing, could we be seeing a decline in mortgage lending activity over the next several months? Quite possibly.
If that is true, it’s important to make every deal count. With consumers making multiple apps, it’s extremely important to make the right, first impression. Put your best foot forward right up front. Otherwise, you may not get a second chance.
Determine a borrower’s potential for the loan approval quickly and accurately. Have the technology to streamline the application and approval process and get to the closing on time. Consumers don’t want the hassles of a long drawn out process with multiple requests for information. They want good rates, with fast reliable service.
There is business to be had. It will go to those best prepared to service the customer and satisfy their needs. Not just with low rates (they count), but you must do business with the technology to get the job done quickly, completely and accurately, with no delays.
Quality counts, to the consumer, the lender, and the industry. The pie may be a little smaller but you can get a bigger slice if properly positioned and prepared to do so.
What’s your action plan? The game has changed. Play different.