With new lending regulation in place, one industry expert says that application activity will not reach its full potential until lenders figure out how to make a more efficient automated underwriting process.
This expert is chairman of Diversified Capital, Bill Dallas, HousingWire reports. He claims to build developing an intricate mortgage network that will make it easier for brokers and lenders to work together by eliminating various compliance issues.
"Mortgage lending is not hard anymore. There's one product. Here's your 30-year fixed. Here's your rate. When do you want to lock?" Dallas recently said at the HousingWire REthink Symposium.
In the wake of the housing market collapse, major lenders have stepped up their efforts to be more meticulous when underwriting home loans by examining every step of the process. In contrast, Dallas noted that small lenders are the companies that have seen this as a major obstacle toward recovery and have embraced more relaxed standards while embracing new technologies to make homeownership easier for prospective buyers.
With housing affordability current at an all-time high, a growing number of consumers could start to enter the marketplace in pursuit of homes. Making mortgage more readily available could help to spur a quicker housing market recovery.