The dovish message of the Federal Reserve grew a little louder late Tuesday, as current Fed chairman Ben Bernanke said that the government's largesse is likely to continue for some time -- even after unemployment rates fall to below 6.5 percent.
No evidence of asset price misalignments at this time
November 14, 2013
Janet Yellen, vice chair of the Federal Reserve Board of Governors, appeared every bit the monetary policy dove that investors expected during her first big hearing in front of the Senate Banking Committee as Fed Chair nominee.
Yields on Fannie Mae and Freddie Mac mortgage securities fell to their lowest level in over a month after the Federal Reserve shocked the market by deciding not to cut back on its monthly purchases of Treasurys and mortgage backed securities.
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.