RegFi Podcast
Streamlining Mortgage Origination Through Digitization
Nov 20, 2024
Anne Canfield, a Partner at The Majority Group with extensive experience in housing finance and public policy, discusses the impact of digitization on mortgage origination. She highlights how technology can streamline processes and reduce costs significantly. The conversation dives into legislative changes that could foster digital mortgages, including past acts like the E-Sign Act. Anne also shares insights on the challenges faced by Fannie Mae and Freddie Mac amid potential political shifts, addressing the future of mortgage affordability.
30:15
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Quick takeaways
- Digitization can dramatically lower mortgage origination costs and expedite processes, benefiting both lenders and low-to-moderate income applicants.
- Legislative changes are needed to access income verification databases, which could enhance mortgage efficiency and affordability while ensuring consumer consent.
Deep dives
Digitization in Mortgage Processes
The mortgage process can be significantly streamlined and made more cost-effective through digitization. Currently, the average cost of originating a mortgage is steep, exceeding $10,000 for non-bank lenders and around $17,000 for banks. Using digital solutions like smart documents and a government database for verifying incomes can reduce these costs substantially, potentially down to $25 per loan. This method would not only expedite the verification process, saving weeks of back-and-forth for underwriters, but also open up opportunities for more low-to-moderate income applicants to secure mortgages.
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