The future of mortgage lending: how tech has simplified the process

Here’s what you need to know ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ [Better] [Better]( This week’s mortgage rates [Better]( Source: US average mortgage rates from [FreddieMac]( --------------------------------------------------------------- Better Mortgage Interested in today's rates? [See Better Mortgage rates]( --------------------------------------------------------------- #FundFact In October 2022, Better Mortgage achieved $100B in digitally funded loans- making it the first fintech lender to do so¹. In the news Fintech lenders are modernizing mortgage lending Fintech lenders are modernizing mortgage lending Technology has modernized the way people buy homes; especially in the mortgage process. For years, getting a mortgage meant driving to a bank branch, filling out endless piles of paperwork with a pen chained to a table, spending hours dishing out your finances with a loan consultant, another trip to the bank… Today, the reality of getting a mortgage looks a little different. The mortgage lending industry is undergoing a major renovation, and fintech lenders have played a large role in the evolution of an antiquated process. Fintech lenders refer to lenders that “have a complete end-to-end online mortgage application and approval process that is supported by centralized underwriting operations.” ² These innovative technologies have made it possible for aspiring homebuyers to apply and get pre-approved for a mortgage loan from the comfort of their couch on a mobile device in minutes. Integrating technology to automate, simplify, and speed up every step of the mortgage process is the future of homebuying. In fact, 99% of lenders believe that technology can help improve the mortgage application process, and 70% of lenders believe technology can reduce closing time³ and improve lending decisions. That’s likely because the numbers show that’s exactly what adding technology to the equation has done. The Federal Reserve Bank of New York found that fintech lenders were able to process mortgage applications nearly 20% faster than other lenders, and were able to decrease the default rate by about 25%⁴ But the tech really isn’t all about benefiting the lender; more than half of the homeowners who used an online application appreciated the streamlined process with reduced closing time.⁵ Data from 2020 shows that sixty-one percent of homebuyers used an online application and online portal to electronically sign documents.⁶ The lending process will vary across the board from company to company, but there are distinct areas where fintech and traditional lenders differ: Improved customer experience Improved customer experience Because fintechs are able to quickly synthesize vast amounts of data at once with algorithms and API's, they are able to reduce human error and more accurately determine the creditworthiness of borrowers. That means borrowers can get to funding faster! These lenders can also use data to continue to build on an even more efficient and streamlined mortgage process that puts the needs of borrowers first; affording them savings on time and money. Automation Automation Fintech lenders are able to automate tasks like data entry and document processing, allowing loan consultants to dedicate even more time to working with borrowers to help understand their mortgage needs. A traditional lender may require paperwork and in-person signings, costing the loan consultant and borrower their time. Automation allows for faster loan processing, and therefore, fintech lenders are able to make a decision and get to closing faster than a traditional lender that could take days, or even weeks, to process your loan. Enhanced risk assessment Improved customer experience The use of technology and data can also help lenders identify areas of improvement in their process and reduce the risk of loan defaults, which helps prevent borrowers from taking on loans that would be financially risky for them. Fintech lenders' use of algorithms to analyze data allows them to make better risk assessment and underwriting decisions. If lenders continue to optimize their processes, they have the potential to reduce costs and increase the overall efficiency of the mortgage lending process. --------------------------------------------------------------- Better Mortgage Go from locked to conditionally approved in 24 hours with Better Mortgage [Get started with One Day Mortgage⁷]( --------------------------------------------------------------- In the news What can homeowners do to save on homeowners insurance? What can homeowners do to save on homeowners insurance? This year, we’ve seen insurers raising rates, and according to [Insurify’s 2023 Homeowners Report]( they’re predicted to climb an additional 9% throughout the remainder of the year. The increase in rates comes amidst pressure from climate events and inflation across the country. Given these rising rates, shopping around for a lower rate on your homeowners insurance policy is more important than ever. If you find a lower rate, you win and save. And if you don’t find a lower rate, you have nothing to lose! --------------------------------------------------------------- Better Cover Don’t have time to shop around? We do. [Get a quote with Better Cover]( --------------------------------------------------------------- Quiz What regulator is responsible for enforcing the Fair Housing Act? - Department of Housing and Urban Development (HUD) - Consumer Financial Protection Bureau (CFPB) - Federal Housing Administration (FHA) - Federal Real Property Council (FRPC) Press Play Follow us on social to stay up to date with the latest mortgage tech, tips, and tools: Watch on [TikTok]( • [Instagram]( • [Facebook]( • [YouTube]( [Better] [Better] [social]( [social]( [social]( [social]( [social]( ¹Source: [Business wire]( ² Source: [Federal Reserve Bank of New York]( ³ Source:[Forbes]( ⁴ Source: [Capacity]( ⁵ Source: [Forbes]( ⁶ Source: [Forbes]( ⁷ Source: Better Mortgage’s One Day Mortgage promotion offers qualified customers who provide certain required financial information/documentation to Better Mortgage within 4 hours of locking a rate on a mortgage loan the opportunity to receive an underwriting determination from Better Mortgage within 24 hours of their rate lock. The underwriting determination is subject to customary terms, including fraud and anti-money laundering checks, that take place pre-closing and which may trigger additional required documentation from the customer. Better Mortgage does not guarantee that initial underwriting approval will result in a final underwriting approval. [See One Day Mortgage Terms and Conditions](. © 2023 Better Holdco, Inc. and/or its affiliates. Better is a family of companies. Better Mortgage Corporation provides home loans; Better Real Estate, LLC and Better Real Estate California Inc License # 02164055 provides real estate services; Better Cover, LLC sells insurance products; and Better Settlement Services provides title insurance services; Better Connect, LLC dba Better Attorney Match provides real estate attorney connection services; and Better Inspect, LLC provides home inspection services. All rights reserved. Home lending products offered by Better Mortgage Corporation. Better Mortgage Corporation is a direct lender. NMLS #330511. 3 World Trade Center, 175 Greenwich Street, 57th Floor, New York, NY 10007. Loans made or arranged pursuant to a California Finance Lenders Law License. Not available in all states. Equal Housing Lender [Equal Housing Lender]. [NMLS Consumer Access]( BETTER MORTGAGE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, PROMOTIONS AND BENEFITS AT ANY TIME WITHOUT NOTICE. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. 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