How the COVID-19 Pandemic Kick-Started Digital Innovation in Mortgage

iLeads Mortgage Market Minute

Welcome back to iLeads Mortgage Market Minute, where we bring you the latest, most relevant news regarding the mortgage market. We hope you enjoyed last week’s edition where we talked about Is The Housing Market Already Rebounding From COVID-19?. This week we’re bringing you:


How the COVID-19 pandemic kick-started digital innovation in mortgage*

Leaders from Wells Fargo, CitiMortgage, loanDepot and Tata Consultancy Services discuss the tech solutions that got a boost

The social protocols mandated by the COVID-19 pandemic have jumpstarted the mortgage industry’s pursuit of digital solutions to keep origination volume in motion. Three origination leaders discussed the innovations during a HousingWire webinar on Friday: “Social Distancing Paves Way for Digital Proximity.”

Origination leaders on the webinar included Jason Cramer, managing director and head of fulfillment at CitiMortgage, Tammy Richards, chief operating officer at loanDepot, and Rakesh Sheth, head of consumer direct sales and business insights at Wells Fargo. Karthik Kumar, global head of mortgage practice at Tata Consultancy Services, moderated the webinar.

“This crisis has inspired creative thinking to its highest order,” Kumar said. “And our own U.S. mortgage industry has been quite innovative – not just the active exploring all the possibilities of video-based closings, remote online notarization regulators and investors easing restrictions, but enabling remote working by a mammoth and diverse workforce.” Read more in-depth here.


Here’s The Only Reason Mortgage Rates Have Moved Lower Recently*

“Because they were so much higher than they should have been in March and April…” Seriously, that’s the reason mortgage rates have been able to move lower even as Treasury yields and MBS prices suggest moderately higher rates. We discuss this in greater detail in the video and in the Day Ahead. Read more in-depth here.


First annual home value drop in nine years predicted*

CNBC’s Diana Olick discusses the future of home prices.


Mortgage forbearance requests slow to a trickle, Black Knight says*

7.2% of mortgages back by Fannie Mae and Freddie Mac have suspended payments

Requests for help from borrowers have slowed with the total number of mortgages in forbearance at about 4.8 million, Black Knight said on Thursday.

Only 7,000 mortgages entered forbearance this week, Black Knight said.

“Volumes of forbearance plans have flattened, and in fact new inflows have slowed to a relative trickle,” the mortgage data firm said in a statement.

The overall share of home loans with suspended payments stands at 9%, Black Knight said. Broken out by investor types, 7.2% of mortgages backed by Fannie Mae and Freddie Mac are in forbearance. That’s a total of 2 million mortgages.

The forbearance share for home loans backed the Federal Housing Administration and the Veterans Administration was 12.6%, or 1.5 million mortgages. Read more in-depth here.


Fintech and cybercrime: how to survive an evolving landscape*

7.2% of mortgages back by Fannie Mae and Freddie Mac have suspended payments

The pace of digital transformation across the financial landscape continues to quicken, but how do banks and fintechs stay ahead of the threat?

According to Accenture’s 2019 Ninth Annual Cost of Cybercrime report, financial services incurred the highest cybercrime costs among all industries studied in 2018.

This report revealed several statistics, including that:

  • Banking had the highest average annual cost of cybercrime by industry in 2018, at $18.37mn.
  • The average number of security breaches rose in 2018 to 145, representing an 11% increase over the previous year and a 65% increase over the previous five years.
  • Globally in those industries surveyed, the annual cost of cybercrime rose by 12% to $13.0mn in 2018, up from $11.7mn in 2017.

Read more in-depth here.


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