Did you know that there is a kind of jellyfish that never dies?
The turritopsis nutricula—a.k.a. the immortal jellyfish—has the ability to transform its matured cells into new, “infant” cells, effectively regenerating itself. It’s the phoenix of the ocean, and it’s real.
The most incredible thing about this sea creature in my opinion, however, is not its immortality, but its courage to continuously change.
The human race possesses a natural aversion to change. We like things to stay the same. Our brains are a tangle of patterned thoughts made up of neurons and synapse pathways. Just as sledding down a compact trail makes for a faster ride, the well-traveled pathways in our heads are easier for us to use. This is why it is so difficult to create new habits or learn a skill, even if it something we desperately want to do—it is like being the first one to sled down a hill. It is slow. It isn’t nearly as fun. And it can lead to a place we didn’t expect.
However, as the turritopsis nutricula has illustrated, it is also imperative if you want to keep living.
The Same Is True For the Mortgage Industry.
The residential real estate industry has been sledding down the same hill for so long that the snow has mostly disappeared. The technology being used is outdated and the processes in place are confusing, inefficient and vulnerable to fraud. Homebuyers are unaware and, as a general rule, uninformed of many of the twists and turns during the home buying process.
This unfamiliarity affected buyers’ ability to repay and, combined with loose lending requirements in 2008, led to the economic housing crisis that crippled the United States economy and even reverberated through other countries.
Mortgage Regulations Are Changing the Mortgage Process
New regulations have been made in response to the housing crisis. The Dodd-Frank Act was enacted in January of 2014, stipulating tightened lending requirements to ensure that borrowers are able to repay. The Consumer Financial Protection Bureau (CFPB) has proposed RESPA/TILA—20,0000 pages worth of compliance rules—that is set to go live in October.
This is why I believe that in 2015, the mortgage industry will be rebirthed.
These new laws require more than just switching out forms—they will require transforming the entire home buying process into a transparent, improved customer satisfaction experience. In other words, it’s time to switch to a new sledding hill.
Packing down the new processes, policies and procedures into a compact, easily navigated path will take tools that the industry as a whole does not currently have or use: modern and user-friendly technology. In the present, buyers can be frustrated and confused by the amount of complicated information they need to provide. This can happen when players in the mortgage process creates a separate set of official documents and shuffles them back and forth through email, fax or other methods. This process leads to delays, redundant workloads, and errors. It also lends itself to manipulation of vulnerable information and misallocation of funds.
Picture this: One set of official mortgage data created in a digital vault that appropriate parties can access. This helps to eliminate mistakes, double entry and delays. Informed and excited buyers deliver the required materials in a timely manner. Vulnerable data is secure. The money is monitored so that it goes where it is supposed to go. Transparency and responsibility, with ultimate liability on the lender, is the order of the day.
With buyers at less risk for foreclosure, lending requirements won’t have to be quite so tight and more loan originations will be possible. Mortgage-backed securities will be worth more to investors. With the right transparent solutions, people could be protected against certain types of fraud. All of these improvements will help boost the United States economy.
The mortgage process doesn’t need to drag down our nation. It should support it and increase opportunities.
This is my vision of the mortgage industry rebirthed.
Of course, this change can and probably will be a terrifying and painful learning process. As the French poet and novelist Anatole France phrased it, “All changes, even the most longed for, have their melancholy; for what we leave behind us is a part of ourselves; we must die to one life before we can enter another.”
I believe that technology will transform the mortgage industry in 2015. Institutions that embrace these innovations will have embraced the mindset of immortality—the courage to continuously change.
Want to make your mortgage process easier and more accurate? Contact ATS Secured today.