Mortgage Lenders Looking to be Profitable in Current Refinancing Trend

1. Mortgage Lenders Looking to be Profitable in Current Refinancing Trend According to the latest weekly survey data published by the Mortgage Bankers Association, the homebuying has increased by 8% and refinance by 43% from the last week, a 109% rise from the same week the previous year. Joel Kahn, Associate Vice President of Economic and Industry Forecasting, also mentioned that the mortgage market has been strong in 2020 with 30-year fixed mortgage rates hitting its lowest since September 2019. Moreover, refinances for both government and conventional loans were high as lower rates gave an incentive for borrowers to act. These trends suggest that we will continue to see the mortgage rates to stay low for most of 2020. That would help the home buying market as well as refinancing activity, and we might expect the loan applications to be higher as compared to the early part of 2019. Several forecasts also mention that the refinancing trend is likely to stay until the first half of the year 2020. It will not only help U.S. homeowners to add that additional buck in their pockets, but lending entities such as Banks and Mortgage Lenders will also be able to see some extra profits in their business. How will this refinancing trend be beneficial for Banks and Mortgage Lenders? Refinance boom means two things for lenders (and mortgage divisions of banks)- Close refinance loans faster and Terminate the existing loan before

2. funding of refinancing. Banks and mortgage lenders must maintain accuracy and keep turn-time low at every point in this process. While terminating a loan adds to the duration of the refinance loan lifecycle, it is a must. Taking on these high volumes is not a cakewalk; Lenders need to put in significant preparation. They need to staff up additional resources in anticipation of the volumes, which in turn adds to their fixed costs and hampers their bottom-line. However, if lenders can ensure scalability and flexibility in their operations, then it could save costs and reduce the pressure on profit margins. Even technology plays a significant role in lenders being able to capitalize on this high-volume trend. They need the technology that automates their processes, intelligently reduces redundancies, maintains accuracy, and performs necessary quality checks. While most of the banks and mortgage lenders are now investing in technology platforms/software that helps them in fulfilling these needs, it is highly impossible to have all this in-house. Choosing a technology-based service provider Banks and mortgage lenders should choose a technology-based service provider who can fulfill all their requirements so that they can continue to focus on their core activities. A service provider who has access to the best of technology and maintains high-quality standards in compliance will help hasten the origination process as well as quicken the existing loan termination process. Having such a service provider partner will help in providing scalability to the banks and mortgage lenders. It will also allow flexibility to take on more volumes and add additional profits. How can Visionet help Banks and Mortgage Lenders in this Refinancing trend? Visionet’s loan document processing solution VisiLoanReview (VLR) reduces the loan cycle time and quickens the loan termination process. VLR has an API based integration with Encompass®, a digital lending platform by Ellie Mae, which makes it easier for lenders to close loans faster and maintain over 98% accuracy without any manual effort. VLR helps lenders to automatically pick up files from the efolder in Encompass, process them and push the processed data back to Encompass within merely 15 minutes. As the records become available on time, this helps

3. the pre-underwriting quality check process. The amount of time an underwriter needs to spend on the file reduces significantly. Similarly, to accelerate the loan termination process before funding a new one, VLR aids the Lien/Assignment Release process while maintaining regulatory compliance. Visionet can process 20,000 pages/hour, and VLR- Encompass integration is definite to make your lending process a lot simpler and faster while making sure that all regulatory compliance guidelines are met. At Visionet, we believe that this is the time that Mortgage Lenders, Banks and Credit Unions can make the most of the growth opportunities available. We all witnessed how the rise in mortgage volumes in the second half of 2019 added substantial profits for lenders, and now it is time to build on that to register a continued success streak. Do make the most of the ongoing refinance trend and take on more loan volumes. For any help or to schedule a demo of VLR, feel free to reach out to us