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Millennials Will Drive the Next Homebuying Wave; Give Them the Mortgage Experience That They Want!

Blog Millenials 1

Great discussions with mortgage and banking executives from all over the country (Part II)

By Steve Butler, AI Foundry

Recently, I attended two executive conferences where I met with mortgage and banking executives from all over the country. My first stop was the California Mortgage Bankers Association (MBA) Conference in San Diego, and later that week I attended the Executive Roundtable for Residential Finance Transactions in the Digital World.

While my last blog outlined the first wave of findings from these two events, there were two other important trends discussed by the attending economists and industry executives that I wanted to point out.

First, the economists shared a lot of data on mortgage market trends, which indicated that interest rates will stay low – and trend lower – over the next several years. This may stimulate the refinancing market. At the same time, an all-time spike in new rental home starts over the last several years could also be good news for the mortgage sector.

Also, economists did not see indications that millennials will not be buying homes, but rather that they will move to home ownership later than previous generations did. With rental rates rising and interest rates remaining low, many millennials will soon be starting their adult lives by getting married, having kids and buying homes.

However, as many of us know (and have ready) millennials research products and make buying decisions in a much different way than the traditional home buyer. This is a group has digital savvy and is used to on-demand, instant transactions from companies like Uber, Venmo, Amazon…and now, Rocket Mortgage. Many millennials are not used to the traditional mortgage application process and will search for a digital alternative that gives them the speed and instant gratification that they are accustomed to. However, that gratification needs to be real and not just an illusion, or you will lose their business quickly. For example, you don’t want to tell them that they are pre-approved for a loan when they are not really pre-approved.

This is where AI Foundry can help – by helping banks and other lenders create a new mortgage experience that is 1) digital-based 2) much faster than the traditional process 3) free from errors and negative surprises for the buyer. Our AI technology can improve back-end operations and allow lenders to significantly speed mortgage processing to create a better experience for the borrow and improve efficiency and reduce costs for the lender…a true win-win!

We need to make sure that the lending industry does not fall behind the technology curve when compared to all of the other products and services that millennials can get on their phones today. Now is the time to use AI and machine learning to take the complexity and stress out of the mortgage process so that lenders can help the next wave of home buyers, which will help the industry grow in 2019 and beyond.

How can you get ready for all of the technology changes that are coming to the mortgage industry? We created a new eBook that explores trends in the market and offers a forecast for the future. Download your copy to learn how artificial intelligence and machine-learning can help improve your business.

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