Speed, service and a good deal are in more demand then ever, with interest rates rising and buyers competing to find the homes of their dreams in the locations of their dreams. Refinancing is cooling down, but home purchases are strong. Acting on emerging trends will propel mortgage brokers to success.
CNBC reports that even though home sales are predicted to cool a bit compared to last year, industry experts still anticipate origins for purchases to hit a record $1.72 trillion this year. Notably, adjustable rate mortgages, which carry lower interest rates are experiencing a rise in demand: “Their share of applications last week was 7.4%, the highest level since June 2019.”
Mortgage brokers who can bring speed and efficiency to the deal are going to be in especially high demand among buyers eager to seal the best possible deals. McKinsey reports that despite high consumer expectations, customer satisfaction in the mortgage industry continues to be “subpar.” Toward speedier, smoother experiences, technology is gradually disrupting business as usual in the lending sector, creating improvements and innovations in home-financing and buying services. As McKinsey observes: “Borrower expectations for digital engagement have risen dramatically over the past 18 months…About 60 percent of both purchase and refinance borrowers would be open to completing their entire mortgage application online, without phone or in-person support. Moreover, customers crave speed: satisfaction drops by roughly 15 percentage points if the lender takes more than ten days to provide a decision on the application.”
Other notable trends mortgage brokers can leverage to propel success are the share of “non banks” now originating loans and introducing innovative, tech driven products and services: “Five years ago, nonbank lenders accounted for roughly half of total originations…In 2020, the share of originations by nonbank lenders leapt to nearly 70 percent…Consumers can benefit from having nonbank lender choices, because many of these lenders…make submitting an application, uploading documentation, and communicating with the lender easier… Some tech-enabled lenders are also…offering home shoppers in competitive real-estate markets cash up front so that these potential home buyers can make cash offers.”
Starting Out as a Mortgage Broker?
The timing is right: the demand for mortgage brokers to skillfully connect people to lenders and find the right solutions for their credit, timing and financial goals is high. You’ll need a mortgage brokers license and before issuing this, most state regulations require a mortgage brokers license bond. Importantly, this bond guarantees compliance with all applicable government rules and regulations associated with the responsibilities of being a mortgage broker. As the Mortgage Licensing Group sums up: “When mortgage brokers get bonded, the bond serves as an external financial guarantee that in the event of a breach of duties… then the agency requiring the bond can make a claim on the bond and seek financial compensation for the breach.”
Colonial Surety makes obtaining a mortgage brokers license bond easy and affordable. As a direct bond writer, we meet the obligee specific requirements in every state—plus, we eliminate the pesky “middleman” fees. With Colonial’s unique, direct and digital process, you are just a few clicks away from a mortgage brokers license bond. Colonial makes it easy and speedy. Just:
- Get a quote online
- Fill in the information
- Enter a payment method.
- Print or download and e-file your bond from anywhere, anytime.
If you are looking to boost your earning potential and branch out onto new career paths, don’t forget Colonial Surety is here to help. Our direct, digital portfolio of 4,000 license and permit bonds makes it easy to the specific professional bonds required in every part of the country. From mortgage broker, to real estate, to motor vehicle dealer, collection agent and more—you name it, we most likely have exactly what you need: license and permit bonds here.
As a national surety bond leader, Colonial makes it quick and efficient to obtain license bonds in just a few clicks, online, anytime, from anywhere. Founded in 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. Colonial is rated “A Excellent” by A.M. Best Company and U.S. Treasury listed. Our customers have awarded us a 4.8 TrustScore—and they especially appreciate our speedy, easy service. You will too—we promise!