Change and evolution has occurred in the mortgage and loan industry due to consumers changing their perceptions on investing and borrowing. These changes and perceptions happened due to a recent recovery of the United States economy. According to Profit Confidential.com “The Congressional Budget Office (CBO) estimates that the U.S. economy, after growing 2.1% in 2014, will expand at 2.9% in 2015 and 2016”. What this means for fintechs, national banks and investors is the economy and marketplace for the business is changing.
“That expense is passed onto consumers in the form of slightly higher rates across the board. On a more obvious note, rapidly rising rates make for frustrated mortgage borrowers and generally elevated levels of stress throughout the industry” says Matthew Graham from MortgageNewsDaily.com. Evidently, this is a problem for the everyday consumers have less disposable income to spend on additional services and it becomes more difficult to cross sell certain products depending on a consumer’s circumstances. Ways these problem can be overcome is by reevaluating the economy and understanding there are other ways to obtain mortgages rather than through a large corporate bank with higher rates. Customer can overcome the changing marketplace by partnering with Zikher and they will be provided a middle ground. People seeking loans and home ownership will be able to find a way to manage their interest rates more effectively through their local credit unions because they can offer lower rates.
Author: Megan Gospe
Cohen, Patricia, and Conor Dougherty. “Mortgage Rates’ Rise Catches Home Buyers — and Lenders — Off Guard.” The New York Times. The New York Times, 23 Nov. 2016. Web. 29 Nov. 2016.
“Economic Outlook For 2016 – Explained.” Stock Market Advice | Investment Newsletters – Profit Confidential. N.p., n.d. Web. 29 Nov. 2016.
Graham, Matthew. “Mortgage Rates Quickly Approach 2-Year Highs.” Mortgage News Daily. Mortgage News Daily, 23 Nov. 2016. Web. 29 Nov. 2016.
Passy Jacob “Higher Loan Limits Could Mean Increased Mortgage Volume.” National Mortgage News. National Mortgage News, 23 Nov. 2016. Web. 29 Nov. 2016