What mortgage lenders predict for 2022

What mortgage lenders predict for 2022
Written by Publishing Team

Home finance companies will monitor all players in the real estate sector as they carefully head into 2022 as they continue to gain momentum, according to Last Arizent Survey.

More than half, or 54%, expect department stores, where residential property purchases are centered with related services, to be the biggest potential disruption to the industry in the next three years, and residential mortgage companies are in the midst of working out how to position themselves in light of this shift. .

The respondents to the Arizent mortgage survey came from non-bank institutions (29%) and banks (42%) and also included mortgage brokers (15%), mortgage insurers (7%), mortgage technology providers (5%), and government professionals and property insurance. (2%).

“Some mortgage companies don’t have the ability to offer multiple products, but increasingly what they will do is offer multiple additional services around their core offering that those companies can use,” said Allen Price, Senior Vice President, BSI Financial. “It’s matches like this that we will be seeing in 2022, with the point of view being a one-stop shop. Everyone is moving to this kind of model.”

Other potential disruptors include all-cash buyout programs (25%) and “iBuyer” companies that provide algorithmic real-time bids for online properties (21%).

However, since the time of the survey, Zillow, one of the biggest players in iBuying, has announced its exit from this market Because of the evaluation challenges this year. But some of the mortgage professionals interviewed for this article said they expect iBuying to rebound next year. In light of Zillow’s failure, iBuyers still in the game will likely make adjustments that address algorithmic pricing concerns and bring them back in full force in 2022, Price predicted.

“I think they are going to prove this thing and solve the evaluation piece,” he said.

If this happens, the potential for real estate companies to become business partners in the mortgage industry can increase in cases where real estate companies do not have internal financing units. In the coming years, Price said, they can serve as referral partners for lenders, and look to providers to help manage housing-related cash flows.

“It remains to be seen how important it is in the marketplace, but the iBuyer model is definitely a disruptor and it is here to stay,” Price said.

The extent of growth that will emerge among real estate innovators in the coming year may depend on how public policy affects the market, supply and financing of low-cost homes.


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