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.
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.
The COVID-19 pandemic has put a significant load on the mortgage industry as lenders are facing immense pressure while handling existing clients and entertaining incoming requests. The governments have rolled out different relief plans for borrowers, making the situation even more difficult for the lenders to keep their businesses alive and effective.