How can Lenders Manage the Surge in Mortgage Volumes?

How can Lenders Manage the Surge in Mortgage Volumes?

Most of the mortgage lenders are experiencing exceptionally high volumes right now. They love the fact that their hands are full, but at the same time, they still need to convert the volumes to funded loans and expand their market share. Most lenders used to handling lower mortgage volumes during the year are not operationally ready to manage this sudden surge.

Joel Kan, Associate Vice President of Economic and Industry Forecasting at Mortgage Bankers Association’s recently stated that “mortgage rates continued to decline over the Labor Day holiday week, with the 30-year fixed-rate decreasing five basis points and remaining near three-year lows. Purchase activity was 9 percent higher than last year, continuing the trend of year on year gains.”

Refinance on a high

Not just that, even the refinance activity is significantly high as compared to last year. Borrowers are looking to refinance for various reasons. Some may want to cut down on their monthly payments. Others are looking to opt for different loan products, and some may wish to consolidate their debts at a lower interest rate.

We believe this trend of high mortgage volumes will continue for a while. The Millennials are responding to the rate drop quicker than anyone else. Based on the latest Ellie Mae Millennial Tracker, the share of refinances among millennials jumped 9 percent month-over-month in July, reaching 23 percent after three consecutive months of minimal movement. According to Ellie Mae, average interest rates on all 30-year notes fell from 4.39 percent in June 2019 to 4.19 percent in July 2019. The average interest rate for millennials decreased for all three loan types, with rates for FHA loans dropping to 4.26 percent, rates for conventional loans falling to 4.15 percent and rates for VA loans declining to 3.73 percent. Some claim that millennials are the real reason to drive this volumes surge.

Managing high volumes is possible

Managing high volumes is possible for lenders only because of credible service providers they are partnering with. With this surge, right from lenders’ in-house front-end team to the back-end executives of the loan processing lifecycle, all are swamped with work and are working on a stringent timeline. Additionally, the pressure of getting all of it done accurately and 100% compliant with the regulatory frameworks is enormous. That is why many of them are turning towards their proven service providers to take on more responsibility and deliver a lot more than before within the stringent constraints of time and quality. Quite rightly, most of the service providers are stepping up to support their lender clients with scalable operations team, expert mortgage professionals, apt technology solutions, 24*7 processing and most importantly ensuring deliveries within the desired timeline.

Visionet’s execution capability has enabled its lender clients gain more market share and capitalize on the volumes demand. We are supporting lenders across the mortgage origination cycle with a unique combination of BPM services for origination, title, and settlement along with the technology products for loan processing and title search. With its AI/ML-enabled technologies and strong mortgage domain expertise, Visionet is ensuring that lenders can manage this volume surge seamlessly. Recently, in September, Visionet helped a lender process 22,000 loan files, each with over 250-300 pages within one working week. We can be up and running within a week to support and deliver on your requirements.

Just drop us a line at mortgage@visionet.com, and we will do our best to support your mortgage volumes with our capacity, technology, and domain expertise.

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Thomas Lin

Thomas is a Real estate professional with over 25 years experience in the mortgage banking and financial services sector specializing in client relationship management, business process management and digital technology sales within the mortgage origination's and servicing space. He has an additional experience in default mortgage servicing and commercial portfolio / asset management. He is a strategic thinker, performance driven leader with broad origination and servicing experience, excellent communication skills, and experience in strategic planning.

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