Top 5 Factors Reshaping the Home Mortgage Market in the United States

April 9, 20220
Pierpoint Mortgage | Broker & Lenders | Top 5 Factors Reshaping the Home Mortgage Market in the United States

Mortgage demands have risen in the United States, both to a boom in home purchases during the COVID-19 pandemic and low-interest rates that have made refinancing attractive over the last two years. Even if interest rates rise, banks, non-bank lenders, and mortgage companies are likely to continue to see solid demand from the buying market.

According to a recent analysis from the Mortgage Bankers Association, the sector is predicted to originate more than $2.5 trillion over the next three years, a figure that is at least 40% more than the average annual originations between 2010 and 2019.

Meanwhile, the mortgage sector has been increasingly implementing technology to improve the front-to-back process of obtaining a mortgage, intending to improve the overall customer experience.

Investors can help to improve the origination, processing, underwriting, and loan servicing processes, as well as increase consumer access to home-financing and home-buying services.

Here are five dynamic developments that are transforming the mortgage market and that investors in this sector should be aware of:

More portions of the mortgage process are being streamlined thanks to third-party technology and data suppliers

According to a recent study commissioned by the Consumer Financial Protection Bureau (CFPB), an increasing number of third-party technology and data providers are streamlining more parts of the mortgage process.

The study found that the industry is increasingly turning to mortgage companies other than lenders to provide the technological solutions necessary to originate, process, and track mortgages. This suggests that greater standardization is taking place within the mortgage market and highlights how nonbank entities are continuing to play an important role in its overall functioning.

Nonbank lenders are gaining market share

Nonbank lenders accounted for 43 percent of the mortgage market in the third quarter of this year, up from 34 percent in the same period last year. This uptick is attributed to continued growth in refinancing activity and increased demand for jumbo loans, which are mortgages that exceed the conforming loan limit established by Fannie Mae and Freddie Mac.

The market share of non-bank lenders has been steadily increasing over the past few years as these companies have been able to provide more flexible products and faster turnaround times than traditional.

Digital platforms that are more efficient are being introduced by next-generation “sub servicers”.

There’s a new player in the mortgage servicers market and its name is Next-generation “sub servicers”. These firms are introducing more-efficient digital platforms that are designed to make it easier for borrowers to keep up with their payments and for lenders to manage their portfolios.

This increased efficiency is coming at a time when mortgage companies are under pressure to provide more transparency and better customer service.

Home-buying services, including mortgages, are being bundled by companies

It seems like every day a new company is announcing its plans to bundle home-buying services, including mortgages. And as the housing market starts to heat up again, this trend is only expected to continue. But does this mean that buying a house is about to get a lot easier?

Probably not. It’s worth taking a closer look at exactly what these companies are offering before you decide whether or not to sign up. Oftentimes, the bundled services are nothing more than marketing.

Nonqualified mortgage (non-QM) lenders are making a comeback in the mortgage market

Non-QM lenders are making a comeback in the mortgage market as homeowners look for ways to get around the tighter lending restrictions put in place after the housing crisis.

These lenders are starting to offer mortgages to people who may have been shut out of the market in the past, such as self-employed borrowers or those with less-than-perfect credit.

Non-QM lenders offer mortgages to borrowers who don’t meet the usual requirements set by Fannie Mae and Freddie Mac system, such as a 20% down payment.

This is good news for anyone who is looking for a way to buy a home but doesn’t want to deal with the rigid requirements of traditional lenders, as well as for the economy at large, as it helps to expand homeownership.

Note: Investors searching for ways to improve the borrower’s experience in this rapidly changing market should be aware of recent industry changes, as well as aspects of the mortgage process that may be improved further and what the next potential innovations are.

To make the consumer experience smoother and faster, mortgage companies Los Angeles have implemented technology to improve the process of receiving a mortgage.

Concluding Lines:

To conclude, it is important to understand that there are still many uncertainties in the market, especially as new Fannie Mae and Freddie Mac guidelines are released. Despite this, lenders can take advantage of current conditions and make money at low rates. Borrowers should seek quotes from multiple lenders to get the best deal because of the following reasons:

  • The low-interest rates are one of the most important factors reshaping the home mortgage market in the United States.
  • The tightening of credit standards is also a major contributor to market changes.
  • The increased demand for rental housing is a significant factor, as well.
  • The growth of the sharing economy has an impact on mortgages, as well.
  • And finally, technological advances are having an impact on how mortgages are originated and serviced.

The services provided by PierPoint Mortgage are truly beneficial to you!

PierPoint Mortgage is the best mortgage provider in the market. We provide a variety of services to meet your specific needs. We are always up-to-date on the latest trends, so we can work efficiently for you and get you the best mortgage possible. Our goal is to provide you with an excellent mortgage experience, so don’t hesitate to contact us today, and we’ll find the right mortgage for you based on your requirements and budget!


PierPoint Mortgage, LLC, was founded in 2003 and have been offering brilliant services ever since. PierPoint Mortgage is a nationwide mortgage broker that has over 50 years of mortgage experience.


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