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Fannie Mae: ‘Significant Opportunity’ Lies in Mobile Technology

tech-sightsMobile technology has become increasingly popular with homebuyers, according to a survey conducted by Fannie Mae found that demand for and usage of mobile mortgage products has almost doubled over the past 12 months.

The survey covered 1,200 low- to moderate-income homebuyers who have bought homes in the last year and have a mortgage guaranteed by Fannie Mae.

“This is a startlingly large increase reflecting the pervasive and growing use of mobile technology among consumers at all income levels,” wrote Steve Deggendorf, Director, Market Insights Research, Fannie Mae. “Although this research focused on low- and moderate-income homebuyers, our prior research suggests the results would be even larger for mobile usage and interest among higher-income consumers.”

Fannie Mae suggests, based on research, that interest in these products will only increase among consumers in the coming year, particularly among first-time buyers and younger consumers with a college education. Fannie Mae’s Mortgage Lender Sentiment Survey, covering the third quarter of 2016, noted the growing number of lenders that were making mobile apps part of the process. Deggendorf said there is “significant opportunity” for lenders to meet demand in this space because future interest in conducting mortgage activity via a mobile device is much higher than current interest.

“Though some lenders have begun building out the mobile experience for consumers, all lenders should evolve their online and mobile capabilities to address the rapidly changing consumer demand as well as the potential for competitive shifts,” Deggendorf wrote. “The potential for the competitive repositioning in the broader mortgage market value chain is high, maybe much higher than in many years, as next-generation technologies and providers focus on offering exciting mobile opportunities to improve the consumer experience through digitization and by removing inefficient manual processes.”

Regulators have taken notice of the way the mortgage industry has come to more fully embrace mobile technology in the last year as the needs of consumers have changed. Comptroller of the Currency Thomas Curry, in a speech last week in which he announced that qualifying financial technology (FinTech) companies that offer banking products could choose to receive a special purpose national bank charter if they wish, noted that consumers want better, faster, more accessible products and services, and they are willing to switch providers or use multiple providers to get what they want. These consumers expect to be able to transact basic banking and financial business anywhere, anytime, from the palm of their hands.”

To illustrate just how lenders are embracing a more technology-based approach to meet changing needs and demands of consumers, look no further than Quicken Loans. Last year, the Detroit-based lender created a “Rocket Mortgage” program, which the company bills as a “a fast, powerful, and completely online way to get a mortgage” with a slogan that says simply, “Push button. Get mortgage.” A commercial for this program which aired during the Super Bowl in February generated considerable controversy on social media but was also widely praised.

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.
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