Why Mortgage Brokers Take on New Importance During COVID-19
By:Jason Smith
March 31, 2021

2021: The Year of the Broker

 

Last year was a banner (though not quite record) year for the mortgage industry. According to the MBA, refinances topped $2.4 trillion and purchases hit $1.4 trillion. One important metric, however  stayed relatively flat,  the market share controlled by brokers: it remained at roughly 13%, based on Inside Mortgage Finance’s calculations.

This isn’t to suggest that brokers didn’t do a lot of business last year, they did. Rather, their volume was overshadowed by the giant wave of refinance business that, for the most part, was done directly with large lenders and call center operations.

This year will be different.

If the MBA’s latest forecast is correct, refinances are expected fall by 47% in 2021 and keep falling into 2022, even though interest rates are expected to remain relatively low.

The good news is purchase mortgage demand is expected to be up by 10% this year, to $1.67 trillion, the highest it’s been in the last 15 years.  And, purchase numbers are projected to continue climbing though 2023.

To offset the expected decline in refi volume, wholesale and multi-channel lenders will need to cultivate and grow their broker relationships.

One of the ways to grow their share of TPO originations is by offering brokers technology to help them secure deals, and giving them self-service options to close those deals faster.

This was the thinking behind our new TPO platform – Cloudvirga TPO. Designed to help wholesale lenders build relationships with brokers by giving them tools to work  more collaboratively with their borrowers.

Key Elements Include:

  • A branded point of sale (POS) solution that brokers can use to interact with and qualify prospects
  • A product and pricing engine to help them select, compare and present products to clients
  • All the functionality they need to pull credit, price MI; run dual AUS, order appraisal and generate disclosures
  • e-Signing capabilities and the ability to upload and/or permit automated VOE and VOA 

Using this platform, a broker can prepare and upload underwriter-ready files in as fast as 10 minutes.

The platform also supports collaboration between a lender’s operations team, the broker and the customer.  For example, conditions can be quickly shared with the broker, then easily edited and passed along to the borrower.  Depending on what’s needed, the borrower can upload documents to clear that condition directly through a personal portal within the cPOS.

In addition to significantly reducing “touch-time” between various parties, the platform also continually monitors for compliance throughout the application and disclosure processes.

Slated to formally launch in 3Q3, Cloudvirga’s TPO platform is already being implemented by a number of leading wholesalers including Finance of America, Citizens Bank, JMAC and Deephaven.

They want to be ready for the year of the broker.

Watch 2 Minute Guided Demo Tour

Want to reduce closing costs and close more loans faster? Watch a 2 minute guided demo tour and see why the top U.S. lenders trust Cloudvirga as their digital mortgage technology provider.

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