A recent report on CNBC found that mortgage rates are at record low levels, with some U.S. lenders offering an APR of 2.75% to 2.875% to their top customers. In fact, lower mortgage rates are helping a quicker recovery in the homebuyer market.
A report from the American Banker publication indicates that the mortgage lending industry is barely coping with the surge in refinancing applications, and the ongoing social distancing measures add to its worries. Not only the U.S., but Canada as well, are witnessing a sudden rise in the number of loan applications after the recent rate cuts. Many people are rushing to make the most out of the current low-rate environment.
Big changes are on the horizon for the lending industry. While many may fear artificial intelligence (AI), this exciting technology is already changing the way we approach traditional lending.
One essential system that lenders rely on is the five C’s of credit. This system plays an important role when it comes to qualifying loans. The five Cs serve as a valuable benchmark that financial institutions can use to score a borrower.
In today’s digital age, smart contracts guarantee a new way of doing business. Maintaining compliance, data accuracy, and legitimacy is essential in almost every major industry. Smart contracts are starting to catch on as businesses realize the immense potential they have.