Technology is proving to be a game changer in the real estate world but its impact on mortgages is being felt differently on commercial and residential mortgages.
According to Housing Wire, mortgage lending service operators are relying more on technology not just to assist them with transactions but also help them analyze business data more accurately. Kelly Adkisson, managing director of Accenture Credit Services was interviewed about the effect of technology to lending firms and she explained that lower volume of customers will ultimately push lenders to find ways to get the edge over the competition. She said, "Lenders need to invest in analytical capabilities to drive high quality leads, that is consumers who are "in the market" or will be soon based on life event triggers."
But contained in the same report is the view that commercial mortgage market is a whole new animal altogether.
In a report by The Wall Street Journal, a New York commercial mortgage broker Eastern Union Funding made headlines last year in the real estate sector when it announced a hard cap on the fees it charged on deals that make the $135,000 quota. Company executives gave the go ahead since they realized that most of the transactions they do have become streamlined.
Eastern Union was founded in Brooklyn and it has shown the willingness to adapt to whatever the customers want. It has proven that it is willing to relax on the fees it charges plus it still allows processing of traditional mortgage-broker services wherein those who apply for a loan must shoulder commissions once a deal has been made. EUF only has 110 employees but the firm managed to process at least $3 billion in loans in 2015. Abraham Bergman, EUF's managing partner and co-founder said, "We're telling clients, if the traditional mortgage broker doesn't work for you, can we have a relationship where I provide you portions of what you need. I can provide you value, we can negotiate a price and you'll pay me for that."
