On The Market

232: Better, Faster, Cheaper Mortgages Could Be On the Way w/Major Finance CEO

Jul 8, 2024

Major Finance CEO discusses cost-saving innovations in the mortgage industry, including new loan products for first-time homebuyers. Faith Schwartz reveals tech solutions to reduce origination costs by $13,000 and government push for AI advancements. Impactful for real estate investors and professionals.

39:34

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Episode guests

Major Finance CEO

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Episode notes

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Quick takeaways

Tech-first solutions can reduce high mortgage origination costs, benefiting both borrowers and lenders.

Innovative loan products like home appreciation mortgages offer financial flexibility to first-time homebuyers and investors.

Deep dives

Evolution of Mortgage Industry Amid the Pandemic

Innovations in the mortgage industry are driving more access to affordable housing and homeownership, potentially lowering borrowing costs for investors and homeowners. The fluctuations in interest rates, high inflation, and supply chain disruptions have led to challenges in affordability and access to housing. The industry experienced significant changes during the pandemic, shifting towards digital processes and adapting to volatile market conditions.

Intro

2min

Challenges and Adaptations in the Mortgage Industry

7min

Exploring the Future of the Mortgage Industry and Real Estate Investment Options

2min

Efficiency and Technological Advancements in the Mortgage Industry

13min

Positive Impact of Government Regulations in the Mortgage Industry

3min

Efficiency in Mortgage Companies and Innovative Loan Products

11min

The mortgage industry has just been through one of its biggest booms and busts, but some tech-first, cost-saving innovations could improve things for borrowers after this current cycle. During the low-interest rate environment, transactions were at record highs as borrowers rushed to refinance or buy homes at rock-bottom rates. But, once interest rates shot up, the volume stopped, and those in the mortgage industry saw their incomes plummet. Many had to raise prices to keep the lights on, making originating a mortgage even more expensive for borrowers. But things are changing—for the better.

Faith Schwartz from Housing Finance Strategies is here to unveil some of the groundbreaking changes the mortgage industry is making and how it could make getting a mortgage more accessible and cheaper for first-time homebuyers and investors. Faith even shares some new loan products we didn’t know about, from mortgages that help low-money-down borrowers to products that allow access to equity without refinancing or using a HELOC (home equity line of credit).

With mortgage origination costs around a whopping $13,000, Faith walks through the new technology that could dramatically reduce this high price for borrowers and lenders. Plus, an AI and high-tech push from the government could completely flip this often archaic system. If you invest in real estate, want to invest, or work in a real estate-related service, this will seriously impact you!

In This Episode We Cover

Tech-first solutions that could make originating mortgages cheaper and faster

The massive boom and subsequent bust that led to today’s struggling mortgage industry

Why originating a loan is SO expensive, and the fees that could be eliminated in the future

How the Federal government is creating new policies that help struggling buyers

New loan products that can assist first-time homebuyers and those with untapped home equity

And So Much More!

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