The mortgage industry is still facing tough times due to high inflation and fluctuating interest rates, so affordability remains a top concern. Despite these factors, wins are still possible for originators, servicers, homeowners, and fintechs as this Fed-engineered slowdown plays out. We strongly believe there is reason for optimism, as does our CEO Dan Sogorka.
Recently, Dan got with DS News/MortgagePoint Magazine to unpack current trends in the fintech space, and the direction the market may be heading in 2024.
Here are a few key excerpts from his interview.
This is what Dan had to say about what headwinds will be impacting the industry and how to help homeowners stay ahead:
Affordability will remain challenging, but we must educate borrowers on how GSEs allow for low down payments and higher debt-to-income ratios. This gets more people into homes while keeping our housing system safe, with near-record low total mortgage delinquencies of 3.62% (including conventional, FHA, and VA loans).
And with rates hitting a peak of 8% as we kicked off 4Q23, rates are now projected (by MBA) to drop to 6% by 4Q24. But this means we must continue innovating our technology to better serve the industry at large, following regulations — all while keeping the consumer and their needs at the center of our bullseye.
Dan then dives into tech trends for the year to come and explains how Sagent is leveraging these opportunities to streamline operations.
We at Sagent enable servicers to educate and engage consumers using cloud-native, open-API ecosystems where all users — consumers, servicers, investors, and regulators — can see the same things across the entire system in real-time.
The overarching goal is to automate complex tasks for servicers (ie: escrow analysis and resolution, hardship relief, etc.) helping consumers manage their home-owning lives — all accessible from any mobile device.
Dan further emphasized the need for highly skilled, technical, and operational individuals to help drive our future-of-servicing model. And that’s exactly what we’ve done at Team Sagent over this past year.
We’ve built the best fintech team in this industry by hiring people and acquiring teams with deep expertise in both servicing operations and technology.
It’s our Visionaries Who Get the Details, plus our relentless, relevant, and reliable team members who are the power behind our mission to lead the evolution in loan servicing by solving its most complex challenges.
You can check out the full DS News interview here and complete the form below to connect with our team to learn how we can help you!