232: Better, Faster, Cheaper Mortgages Could Be On the Way w/Major Finance CEO

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 8 July 2024

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

The mortgage industry has just been through one of its biggest booms and busts, but some tech-first, cost-saving innovations could improve things for borrowers after this current cycle. During the low-interest rate environment, transactions were at record highs as borrowers rushed to refinance or buy homes at rock-bottom rates. But, once interest rates shot up, the volume stopped, and those in the mortgage industry saw their incomes plummet. Many had to raise prices to keep the lights on, making originating a mortgage even more expensive for borrowers. But things are changing—for the better. Faith Schwartz from Housing Finance Strategies is here to unveil some of the groundbreaking changes the mortgage industry is making and how it could make getting a mortgage more accessible and cheaper for first-time homebuyers and investors. Faith even shares some new loan products we didn’t know about, from mortgages that help low-money-down borrowers to products that allow access to equity without refinancing or using a HELOC (home equity line of credit). With mortgage origination costs around a whopping $13,000, Faith walks through the new technology that could dramatically reduce this high price for borrowers and lenders. Plus, an AI and high-tech push from the government could completely flip this often archaic system. If you invest in real estate, want to invest, or work in a real estate-related service, this will seriously impact you! In This Episode We Cover Tech-first solutions that could make originating mortgages cheaper and faster The massive boom and subsequent bust that led to today’s struggling mortgage industry Why originating a loan is SO expensive, and the fees that could be eliminated in the future How the Federal government is creating new policies that help struggling buyers New loan products that can assist first-time homebuyers and those with untapped home equity And So Much More! Links from the Show Find a Lender Join BiggerPockets for FREE Join the Future of Real Estate Investing with Fundrise Subscribe to The “On The Market” YouTube Channel Start Investing with Dave’s Newest Book, "Start with Strategy" See Dave at BPCON2024 in Cancun! Dave's BiggerPockets Profile Dave's Instagram On The Market 220 - Top Lenders Share “Good News” for Mortgage Rates + Trending Investor Loans Connect with Faith on LinkedIn Jump to topic: (00:00) Intro (01:39) The "Perfect Storm" Mortgage Industry (06:45) Mortgage Businesses Going Under? (08:55) The True Cost of a Loan (12:49) Government-Fueled Innovation (17:33) Saving Homeowners During the Pandemic (23:04) Tech-First Mortgages Are Coming (25:54) New Loan Products to Know About Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-232 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	How has the mortgage industry evolved since the pandemic?
0:04.1	I know a lot of us, myself included, often think of mortgage industry of sort of archaic, a little bit old school, not necessarily up and coming in terms of technology, but that might be changing.
0:15.6	There are all sorts of innovations coming into the industry that could drive more access to affordable housing
0:22.1	and homeownership in general, create a more resilient market, and could actually maybe lower
0:27.3	borrowing costs for investors and homeowners. Today, on this episode of On the Market,
0:33.2	we're diving deep into the industry that surrounds mortgages.
0:41.9	Thank you. diving deep into the industry that surrounds mortgages. Hey, everyone, it's Dave.
0:43.7	Welcome to the On the Market podcast.
0:46.2	And today we have a great guest, Faith Schwartz, from Finance Housing Solutions.
0:51.2	Faith is a leading housing finance expert who has done deep work in the mortgage industry
0:56.7	through many market cycles. And today we're going to talk to her about how we got where we are
1:03.0	with the current mortgage industry. We'll also talk about the major headwinds that have been
1:08.1	impacting this industry and the fallout of higher interest rates and
1:12.2	how that's impacting basically everyone who touches housing finance. Then our conversation is going to
1:17.4	move into discussing the future state of the mortgage industry and how innovation could help all
1:23.4	of us. And make sure to stick around to the end because we're going to talk about specific
1:26.8	loan products and options for investors and homebuyers that can maybe give you a better financial
1:32.5	benefit than the more conventional types of mortgages that you're probably used to.
1:36.9	So that's the plan. Let's bring on Faith.
1:44.0	Faith, welcome to On the Market.
1:46.1	Thank you for joining us today.
1:47.8	Thanks, Dave.
	...

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