The mortgage industry is one of the most important financial sectors in the United States. In order to help support the industry, the federal government has a variety of government-sponsored entities and programs to encourage home ownership and mortgage lending. Here’s a quick rundown of these programs. In addition to lending money to people who need it most, the federal government also offers tax breaks and other benefits to mortgage lenders.
The mortgage industry is gradually embracing technology to streamline the mortgage process. The technology adoption is enabling industry players to make improvements in mortgage origination, underwriting, and loan servicing. More companies are using third-party technology providers to streamline the mortgage process. There are also more non-bank lenders entering the mortgage business, and bundled home buying services are becoming more popular with consumers.
As more regulations and new financial technology emerge, mortgage companies must adapt to this new reality. Customer service, for instance, must become more efficient and cost-efficient. For example, if a customer calls to ask about a home loan, an agent will typically have to search through thousands of documents. Similarly, mortgage firms must demonstrate their compliance with dozens of different rules and regulations.
In the purchase mortgage market, mortgage originators with a strong network will be more successful. A pure-play wholesaler, such as United Wholesale Mortgage, became the second-largest purchase lender in the United States last year, originating $87.2 billion in purchase mortgages – up 103 percent from the previous year. Moreover, it is expected to continue growing its share in the purchase mortgage market by 2022.
With the growth of the mortgage industry, mortgage lenders began competing for talent. They offered bonuses and guarantees to attract new employees. Moreover, many lenders established training programs for new hires. Consequently, the mortgage industry has become overstaffed and overhead costs are starting to weigh on lenders’ bottom lines. Unlike last year, mortgage rates are now increasing.
A job in the mortgage industry can be a rewarding and fulfilling career. Working in the industry allows you to make a difference in people’s lives by helping them achieve their dream of homeownership. However, changing careers is never an easy feat, and mortgage jobs are no exception. But with the right training, you can become a successful mortgage professional.
A year ago, the mortgage industry was booming. Rock-bottom interest rates combined with the fad for home offices had boosted home buying. Last year, the industry recorded a record $4.4 trillion in loan volumes. That figure includes $2.7 trillion in refinancing activity. However, since home prices have risen, mortgage rates have shot up. The result has been a tight refinancing pipeline for lenders.
Several regulatory agencies oversee the mortgage industry. The main goal of these agencies is to strengthen the housing market by ensuring that everyone can afford a home. Lenders must follow standards in order to earn federal approval, and the agencies have many ways to enforce their compliance.
