The mortgage industry is undergoing massive disruption.
The FinTech industry is growing incredibly, and even the largest financial institutions have started employing automation in relevant cases. However, before the Covid-19 crisis, mortgage providers were ‘apparently’ not so inclined to pursue digitization.
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.
The mortgage industry continues to grow as more and more Canadians are looking to purchase homes. But despite this rapid growth, the mortgage industry is still lagging and is slow to adopt new technologies like automated underwriting software.