Teresa Bryce Bazemore is president of Radian Guaranty Inc., Radian Group Inc.’s principal mortgage insurance subsidiary. As president, Bazemore is responsible for all domestic and international mortgage insurance business operations.
Almost a decade after the housing crisis, many responsible potential homeowners remain locked out of the market. But recently there have been a pair of hopeful developments that may be key to opening doors to homeownership for qualified first-time and underserved buyers. Fannie Mae and Freddie Mac have unboxed two long-anticipated initiatives designed to make credit more available to deserving potential buyers without compromising standards. Importantly, these are not politically driven affordable lending programs.
Many people want to own a home of their own, but it does not seem within their reach. Equipped with the proper information and support, the possibility of responsible and sustainable homeownership is not as remote as it may seem.
Millennials will continue to enter the housing market in growing numbers in the coming years, and those who work in housing need to recognize and embrace the most important ways the Millennial generation differs from previous generations of homebuyers. Their diversity is at the top of the list.
The mortgage industry is leveraging technology like never before, streamlining processes across the spectrum of lending, servicing, investing and real estate. The combination of regulatory pressure and consumer expectations have set a high standard for efficiency and transparency, requiring a significant investment of time, money and talent to hit the right notes for both.
Ironically, the monkey on the mortgage industry’s back for the past 10 years — increasing regulation — is the very thing that forced companies to find efficiencies in every part of the process, which serves them well as they look to engage tech-savvy consumers. Even as the enforcement of some of those regulations is now in question, the long-lasting benefits of investing in automation will stand.
Mortgage banks have traditionally been slow to embrace new technologies, and while the technology that has improved efficiency, security and customer experience in a multitude of other industries (transportation, education and retail, to name a few) is finding its way into the loan production process, a lot of opportunity still exists in other stages of the mortgage life cycle.