In the wake of deregulations by Donald Trump, the mortgage industry will need to gear itself up for a couple of changes. Banks may soon start following fewer rules and regulations when it comes to lending out money to people. This will mean that processes like underwriting will need to be independently put under strict scrutiny as compared to before.
This will probably need upgrades on an immediate basis to cope with the deregulations for banks that haven’t taken to new-breed platforms as yet.
We can start off by having a look at some of the deregulations that could be brought in, and also the ways in which the underwriting processes could adapt to changes in order to make life simpler for everyone.
Even before becoming the president, Trump had made his intentions clear during election campaigns. He had said that he would take on some of the reforms of Wall Street and also the Consumer Protection Act, which had been adopted with a Democrat approach.
A high-tech approach to resolve operational worries would ensure there is some sort of financial stability in the markets and people do not have to see another financial crisis like the previous one.
One reason that had irked Trump was the fact that banks were more than eager to lend out money to people that did not need the money, but were not ready to service who actually needed to borrow the money.
While the President’s plan might be like music to some people’s ears, it will definitely not be the same for people working in banks. Unlike before, if the new plans and vision fall in place, banks will not be the final deciding factor in who they choose to lend out money. Instead, there will be a common set of rules and guidelines which will apply to all and sundry.
Let’s have a look at one of the better mortgage software solutions.
Customized mortgages are now being adopted by bigger players. We also see now the advantages of such an approach. While smaller players may have adopted this method to attract customers who were still reeling from the effects of the financial crisis, bigger players had chosen to carry on with their traditional methods and lost out on quite a bit of market as people were better off trying to close their loans faster in smaller number of instalments which also saves them money. Given below are some of the reasons why customized mortgages should be offered.
- Better compliance standards by customers: With the option of choosing mortgages on their own terms, there is no reason why a customer will not be able to repay the loan and this has already been experienced.
- Win-win situation for both involved parties: When such a deal is agreed upon, it is done after mutual consent on both sides as compared to before, when customers could choose from only a handful of deals on offer.
- Improved technology beckons: While it sounds good to offer customized packages and garner more customers, it means that there will be access to a greater amount of data. Greater data means having technology which can handle things like emotional drivers, behaviors, interests, and needs. With all these things in place, most customers would find the offers a bit too good to resist.
While these reasons are more than good enough to go ahead and offer customized mortgages, companies must remember that their underwriting systems will have to be top notch in order to deal with compliances of the highest standards. This would help them stay clear of the general problems that are associated with lending out money.