Over the last several years, non-bank mortgage originators have established a much larger market share. Additionally, non-bank servicers have more than doubled their ownership of servicing rights in the last 10 years. This gives non-bank lenders and servicers significantly greater access to more consumers and provides an opportunity for student lending to make an impact.
More than ever, non-bank mortgage lenders are looking for stickiness with their customers after their initial origination – and student loans are a great opportunity for this. Student loans can be offered over 4-5 years of matriculation, even on through graduate school, and there remains a large market these days for student loan refinance. Either of those products can help non-bank mortgage lenders stay relevant with their customers after their initial product.
There’s a lot of seasoning behind student loans, and the loans perform extremely well. Additionally, the application process for students has become seamless and digitized.
CampusDoor has developed the leading platform for originating student loans, and for the non-bank mortgage lenders coming onboard, the process is very established. Lenders using CampusDoor’s platform can join the marketplace in as little as 30-45 days.
While the industry prepares for the refinance boom to come to an end, there’s pressure for rates to move upward, which will pull production back. As volumes begin to drop and margins begin to compress, originators are looking for a way to expand their product offerings. Student lending offers an entryway into consumer finance that non-bank originators have not had access to historically.