Let’s talk about disruption, baby

Who’s up for fewer frown lines, less frustration, and faster funding when it comes to mortgage approvals? If that’s a “hell yeah”, it’s the right answer. Waiting for finalization of a mortgage application via the banks is the bane of an agent’s life, never mind that of the buyer or seller.

The good news is that hi-tech apps used to scan your iris to access personal data when you pass through airport security could be the basis for something similar designed to speed up home loan processing.

Nonbank lenders such as Better Mortgage, Homeward, Knock, Loan Depot, Orchard, Ribbon, Rocket, and Tomo are cutting through reams of red tape to offer a friendlier, easier way to finance a home. This evolution will ultimately digitalize and consumerize mortgages, helping homebuyers avoid expensive middlemen. It’s also likely to influence the way they consider affordability, make offers, and buy real estate. Meanwhile, some real estate brokers are now offering lending and brokerage services too.

In 2020, real estate (together with rental, leasing, finance and insurance) contributed 22.3% to GDP in the US. That’s the highest number by industry. And each year, billions are spent on mortgage services. However, tech advances in data capture and authentication as well as artificial intelligence (AI) enable more streamlined processing of home loans. When it’s all on the blockchain, the question of transparency, safety and efficiency will be a moot point.