MORTGAGES AND LENDING: FUTURE TRENDS IN LENDING THAT EXPERTS SAY TO WATCH

Mortgages and lending are undergoing immense disruption as emerging technologies and shifting consumer expectations transform borrowing experiences. While foundational credit risk principles persist, legacy processes face major upgrades to align with speed, personalization and accessibility demands within these financially critical domains.

A multitude of imminent trends promise significant consumer value. For one, closings will accelerate substantially from status quo 45-60 day schedules towards near real-time completion powered by automated verifications for documents, income, assets, property appraisals and decisions. Handling the entirety of cumbersome, repetitive back-and-forth digitally slashes the timeline to just days without sacrificing diligence. Such responsiveness better aids time-sensitive purchase opportunities.

Mortgages and other loan products will also become more tailored around individual financial situations thanks to AI-enhanced risk modelling capabilities. Wider applicant data integration paints clearer pictures of creditworthiness of those poorly served by traditional scoring systems overly reliant on limited credit report factors. Qualifying more borrowers accurately for optimal terms ultimately expands access.

More diversified loan offerings likewise better meet unique needs, from adjustable down payment assistance products aimed at first-time homebuyers to home improvement/renovation financing, vacation loans, student debt refinancing that folds into mortgages and more. As originators support wider use cases, they expand share of wallet. Embedded tax and insurance payments similarly simplify financial management.

On the servicing side as well, automation will ensure optimal borrower experiences. Systems flagged for human review before issues arise like missed payments enable proactive assistance. Chatbots and AI similarly handle common queries to offer personalized self-service. Access to loan health dashboards via apps/websites boosts transparency too. Ongoing engagement increases satisfaction and referrals.

And then of course lending is growing exponentially smarter, faster and more helpful across the ecosystem spanning marketing, origination, underwriting and servicing. Superior risk-based pricing, enhanced predictiveness, streamlined experiences and customer-centric relationships define the future. Mortgages and other lending products will become far more accessible and personalized.