The U.S. market could expect a solid spring buying season with 30-year fixed mortgage rates sliding to 4.25% in the week of May 14 (Source: Bankrate Data). One indication of this is the 2.7% week over week rise in total mortgage applications as per the data from MBA’s survey ending the week of May 3.
The economy is expected to experience slower or no interest rate rise for the remainder of 2019, & this may encourage mortgage rate shoppers. With low and zero-down loans popping up, & new refinance options unveiled by Fannie Mae & Freddie Mac, there has never been a better time in recent memory for purchasing a house.
Mortgage lenders & title agents: An important thing to watch for is that Millennials will continue to be the largest segment of buyers in 2019 accounting for 45% of all mortgages.
What this means for mortgage lenders & their service providers is an increased focus on closing loans faster. Let’s face it, millennials want to move quickly, and they have plenty of options now. This is on service providers minds – a recent NMN top producers survey showed 77% of respondents saying it was extremely important for their company to reduce turn-times.
The latest report from Ellie Mae Origination Insight for April 2019 states that the time to close has dropped again – this time by 5%. It seems that lenders are strengthening their commitment to serve their customers, especially millennials. You can check out the entire report here.
What does this mean for title agents?
Well, for starters, for title agents it may mean an uptick in revenue from higher volumes as mortgage applications rise. But then, you are not alone, and your competitors are not far behind. Does this imply more resources to manage additional workload and a rise in operational costs & an increase in expenses?
Mortgage lenders promise their customers a faster loan approval and closing, and in turn, expect nothing less from their title agent partners who supply critical pieces in the value chain – title & tax reports. This means title agents must gear up to deliver much faster and avoid being replaced by another supplier who can deliver faster. Furthermore, if a title agent wants to be the preferred vendor for its lender client, they must be ready to take on & fulfill orders across all counties & states. Simply put, the days of being local are over.
To address this, title agents may have to invest heavily in getting adequate manpower to service request quickly, and in getting the right technology platform as well. But this leads to a rapid rise in their overhead costs – and this quickly starts eating into their bottom-line.
How should title agents address this issue? How are others managing this challenge? For starters, they are leveraging experienced providers like SLK Global who have been in the industry for 15+ years and who have the infrastructure & manpower to provide quick & accurate coverage nationwide. And the scale of these vendors allows them to provide these services at a lower cost, higher quality and faster. This not only can help title agents reduce their costs but allow them to work with a single vendor, like SLK Global, for all their property title search reports & property tax reports. Vendors like SLK can help minimize all the hassles of having multiple vendors for multiple requirements while passing on the cost benefits from scale to title agents.
With a wide array of products & services like SmartProp® and SmartTrak®, SLK Global can help title agents deliver reports much faster than the competition while ensuring 100% quality. And with their robust online database & nationwide network of abstractors, they can also help title agents grow their business exponentially.
To learn more about how SLK Global’s solutions can help, click here