What Are The Latest Trends Of The Mortgage Industry?

By: Michael TetrickFeb 03, 2022

The mortgage industry saw several new trends, innovations, and solutions in 2021. Mortgage technology has made significant strides since the beginning of the pandemic, which could not have been accomplished otherwise.

The digital transformation that impacted mortgage lending is one of the most influential and overarching mortgage trends of 2021. Mortgage technology (mortgage tech) allows mortgage lending to be easier, quicker, more accurate, and more streamlined than ever before.

Some of the trends in mortgage technology include automation (AI), machine learning, application programming interfaces (API), omni-channel capabilities, augmented reality (AR), virtual reality (VR), and more. The recent advancements in mortgage tech offer lucrative mortgage solutions that all mortgage companies should take advantage of.

For example, with mortgage automation, the stack of paperwork required for a mortgage loan can be processed by a machine for a fraction of the time and price. Automation also allows lenders to deliver higher levels of customer satisfaction, increase engagement, and create mortgage lead generation.

Therefore, embracing the latest trends is paramount for mortgage companies. With artificial intelligence, machine learning, and various other digital platforms and services available, adapting to these trends can help you stand out against the competition in the mortgage industry.

How Does Tech Transform The Mortgage Industry?

Technology is making a significant impact on mortgage lending. With mortgage tech, mortgage loan processing is streamlined, simpler, and easier. Here are some of the main trends in mortgage technology that are transforming lending and the industry as a whole:

  • Automation – Automation has made a big impact on mortgage lending in recent years by helping mortgage companies increase productivity, cut costs, save time, and serve more people without lowering quality. With the use of automation, mortgage lenders can rely on machines to carry out processes accurately and efficiently.
  • Blockchain – Blockchain is one of the most influential mortgage trends that emerged in 2021. Blockchain is a distributed ledger that is one of the most secure and accurate databases in the mortgage industry. Lending companies are able to easily integrate Blockchain into their existing digital architecture for a seamless and secure system.
  • Data Science – Data science is another one of the main mortgage trends that is transforming mortgage lending. Using data science mortgage tech allows us to have valuable insights, analysis, predictions, and forecasts about future mortgage trends, mortgage solutions, and even mortgage lead generation.

Recent Technological Innovations To Impact The Mortgage Industry

The mortgage industry has taken on a technological transformation recently, especially in 2021. The technology transformation and innovation that occurred could not have been done without the problems brought on by the pandemic.

The pandemic caused just about every industry and sector to take on digital adoption at a rapid pace, which was especially true of the mortgage industry. It forced mortgage lending to digitize and create innovative technology. While the circumstances that prompted mortgage technology advancement were horrific, there was a technological progress as a result.

Now, mortgage companies can take advantage of technological innovations and new mortgage tech. Mortgage companies and lenders that were hesitant to invest in mortgage tech were forced to do so to stay relevant and competitive. Here are some of the main technological innovations to affect the mortgage industry as a result of the pandemic:

  • Artificial Intelligence
  • Machine Learning
  • Augmented Reality
  • Virtual Reality
  • Self-Service Capabilities
  • Omni-Channel Communication
  • Blockchain
  • Collaboration With Fintech Companies
  • Application Programming Interfaces

3 Trends That Have Shaped The Present & Future Of The Mortgage Industry

The mortgage industry has experienced several transformative shifts and changes in 2021. Understanding the mortgage trends occurring helps mortgage companies and lenders improve their services, boost efficiency, and increase mortgage lead generation.

The main trends shaping the present and future of the mortgage industry are largely based in mortgage tech. Here are the 3 main trends that have shaped the present and future of the mortgage industry:

  1. Artificial Intelligence – Artificial intelligence is one of the most influential mortgage trends, specifically in mortgage technology. AI mortgage solutions include using chatbots for mortgage lead generation, advising, organizing, processing, and analyzing loan documents. This saves mortgage companies time and money on overhead costs.
  2. Machine Learning – Similar to AI, machine learning has played a huge role as one of the main mortgage trends in mortgage tech. Machine learning is helping to improve mortgage loan processing services considerably. Machines offer beneficial mortgage solutions by taking over various operations in lending decision-making, loan modification options, and more.
  3. Application Program Interfaces – The increasing adoption of application program interfaces (API), is another one of the main mortgage trends of 2021. API helps mortgage lenders improve efficiency significantly by automating workflows while also maintaining data accuracy and ensuring regulatory compliance. Companies that use API are able to streamline their back-office processes for a seamlessly efficient and accurate system.

Why It's Important To Know The Trends Affecting The Mortgage Industry

The mortgage sector has been historically slow to embrace change. However, as a result of the pandemic, change was necessary. Mortgage companies and lenders must embrace the current mortgage trends and mortgage technology to create smart mortgage solutions and increase mortgage lead generation.

If you would like to learn more about the latest trends of 2021 that shaped the mortgage industry, Rely Services can help. As a company that specializes in Mortgage BPO, we know mortgage technology inside and out, and we help our clients maximize efficiency with our services. Contact Us Here to learn more!