The mortgage industry is undergoing a profound transformation driven by digital innovation. A recent study by STRATMOR Group, the 2024 Technology Insight® Study, reveals a seismic shift: 48% of lenders are now leveraging Robotic Process Automation (RPA), and 38% are utilizing Artificial Intelligence (AI). This surge in technology adoption isn't just a passing trend; it's a fundamental change aimed at streamlining operations, enhancing borrower satisfaction, and ensuring competitive advantage.
The early-autumn dip in mortgage rates presented a fleeting but lucrative opportunity for lenders and borrowers alike. More than 300,000 refinances were completed in September and October of 2024—the highest volume in two and a half years, reports ICE Mortgage Monitor. Borrowers rushed to capitalize on interest rates in the low 6% range, cutting their monthly payments by an average of $320 and generating a collective $47 million in monthly savings. Amid this refinancing boom, one clear takeaway emerged: lenders equipped with advanced technology platforms outperformed their competitors by processing loans faster and retaining more borrowers.
It’s no secret that credit score plays a crucial role in a lender's decision to assess a loan. However, does a high score really represent a creditworthy applicant? In this article we’ll explore why a credit score-centric model is the equivalent of judging a book by its cover. Then we’ll look at a few metrics to underwrite loans beyond the credit score.