Last month involved several regulatory compliance updates and hot topics in the Mortgage industry. We’ve rounded up some key updates and how they will affect you and your financial institution going forward.
CoreLogic Projects Low Mortgage Rates Into 2021
CoreLogic released its final three-year housing and mortgage outlook report for the year on Thursday, and if numbers hold up, the data company predicts 2021 will maintain its unprecedented home sales and record low mortgage rates as the economy continues to recover.
CoreLogic chief economist Frank Nothaft said in a podcast on Friday that the term “unprecedented” best describes 2020. More importantly, he said the current environment may even holdup into 2023.
Why Is This Important to Me and My Financial Institution?
While no one can predict with any certainty what will happen to future mortgage rates, the predominant thought amongst industry experts and economists is to expect a continued low rate environment for the foreseeable future. This means the hot purchase market can be expected to continue and continued refinance opportunities for those high-rate borrowers that have sat on the sideline so far.
Next Spring Homebuying Season Could Be The Biggest In Recent Memory
With the end of 2020 less than two weeks away, Zillow released its predictions for the 2021 housing market, which includes a prediction for what could be the “hottest” home shopping season in recent memory for spring 2021.
Zillow predicts that annual sales growth will be the highest in close to 40 years. The company believes that life and financial certainty will bring more sellers into the market to meet the heavy demand. It also believes that new innovations in technology will improve overall efficiencies in the ability to purchase a home.
Why Is This Important to Me and My Financial Institution?
The hot purchase market is expected to continue. Now is the time to reach out to your real estate agent referral sources and let them know you are ready to handle their borrowers’ financing needs!
RON Transaction Increase 547% in 2020
Adoption of remote online notarization soared 547% in 2020, according to a new survey from the American Land Title Association of major vendors working in the RON space.
The increase in adoption is largely due to protocols related to the COVID-19 pandemic and the fact that 29 states have passed permanent RON legislation.
“Today, RON is being utilized most extensively in Florida, Texas and Virginia,” ALTA told its members. “Additionally, use of this technology is trending up significantly in Midwestern states. A decade ago, Virginia became the first state to enact a RON law and in 2017 Texas was the third state to approve RON legislation. Florida’s law is relatively new, having passed in 2019, but adoption there has been rapid.”
Why Is This Important to Me and My Financial Institution?
The pandemic force the mortgage industry to find a better solution to close loans and the industry responded. Even if the frequency of remote closings falls back a bit once the pandemic subsides, they are here to stay to some degree. Embracing innovative and creative solutions such as this will keep lenders on the cutting edge of delivering optimal service and options to the modern mortgage client.
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*For other news, please refer to Industry News through Mortgage HQ!
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To see a demo that will give you access to valuable training topics like these and more, visit OncourseLearning.com/Mortgage-H-Q.
About the Author
Michael Rhodes
Product Manager at OnCourse Learning
Michael Rhodes is the Product Manager for the mortgage segment at OnCourse Learning. Michael has worked in the financial services industry for 24 years and keeps up to date on mortgage industry hot topics. Michael received his Bachelor of Arts in Business Administration from Carroll University.
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