If you work in the mortgage industry, the challenges of the current housing market are likely top of mind. Amid rising interest rates and low housing inventory, the industry as a whole is wondering when the light at the end of the tunnel will finally shine through. Despite the less‑than‑encouraging statistics and data, a downturn in the housing market doesn't have to be all doom and gloom.
In fact, forward thinkers are seeing the bright side of a slower housing market and capitalizing on this time to prepare for a future when the housing market is hot again.
So, if now is the time to prepare for the industry's future, the real question becomes: "How?"
Weathering the storm and coming out on top
Industry experts have different opinions on when the tides of the housing market will change. While some have an optimistic viewpoint, others believe it could possibly get worse before it gets better. According to projections from the Mortgage Bankers Association (MBA), mortgage rates have yet to hit their peak
and a potential recession lies ahead in 2023. Without any definitive answer, mortgage professionals must strategize for the present while preparing to tackle the future.
"Anyone who has gone through the great financial crisis of 2008 will have proven that they're able to get through a credit event," explained Adam Carmel, Founder and CEO of Polly. "Anyone who gets through this will have proven that they can get through a liquidity event."
Coming out on the other side of the storm surely elevates the reputation of any mortgage company. But staying afloat while the market is rough doesn't equal being on top when the market turns. Lenders want not only to survive the storm but become better‑built businesses with the tools needed to meet inevitable demand increases in the years to come.
"What you need to compete most effectively and win is world‑class people, world‑class software, and world‑class processes. Usually, world‑class people are going to want world‑class software, right? Software that makes them more efficient, that enables them, that empowers them," Carmel remarked.
Before you can attract top‑tier talent, you must invest in state‑of‑the‑art software. With so many tech companies introducing new mortgage tech solutions, choosing the right partner can make all the difference, and now is the time to forge those long‑term, strategic partnerships.
Strategic mortgage tech investments
Being ill‑equipped for the future can be detrimental for a mortgage lender. With new tech solutions and innovative software transforming the mortgage process, lenders need to lean into industry expertise and invest in solutions that will pay off in the long run.
"When a company is able to provide their customers with innovation built with data science, machine learning, or some amount of AI, then they are able to be far more targeted and precise, which then helps their unit economics," explained Carmel.
Tech has become somewhat of a silver lining in today's stormy mortgage market. With a slowdown in business, lenders can dedicate time to looking inward and pinpointing the bottlenecks that are holding them back. "I think the encouraging thing for lenders, banks, and credit unions is that there is an emerging group of new software companies in various categories that will finally help these lenders drive down their cost of origination."
Driving down overall cost is huge, both for the lender and end borrower. But improved workflows and data‑backed insights can do far more than decrease costs. From lowering cycle times to targeting homebuyers entering the market, lenders can streamline their approach at each point of the process.
However, not every tech firm has the experience and specialization needed to really overhaul an outdated mortgage pipeline. Picking the right tech partner is pivotal, both to maintaining business now and growing it in the future.
Partnering with Polly
Polly has firmly positioned itself as a mortgage tech company ready to take on the future of the housing market. With a proven track record of success in the SaaS space, the team of seasoned industry veterans at Polly understand that staying in step with a cyclical market relies on configurable, flexible, and scalable tech solutions that bend with the ebbs and flows of the mortgage industry.
"Polly's solutions help alleviate many of the industry's current pain points, and the market has ultimately been the judge of that," said Carmel. "We have demonstrated through results that we are able to automate a tremendous number of workflows. For instance, within the product and pricing engine space. Lenders, banks, and credit unions have expressed tremendous pain with legacy solutions and Polly has been able to be a beacon of light for them."
In addition to being a leader on the tech forefront, Polly also prides itself on an unwavering commitment to its customer partners. Collaboration at the core, Polly takes their feedback into deep and thoughtful consideration, and has released a multitude of new innovations that solve lenders' most challenging pain points quickly, setting Polly apart from other legacy solutions.
"Our product change function is just one example," Carmel concluded. "We are creating constant and consistent innovation that evolves with the lender even in the most challenging of environments." If quick action in today's market can yield unrivaled features with swift deployment and zero downtime because of the infrastructure that Polly's solutions are built on, one can only imagine what else is possible.
With Polly's cloud‑native, high‑performance Product and Pricing Engine (PPE), lenders can feel empowered by software that truly works for them. An ability to effortlessly configure rules, manage ultra‑granular margin strategies, and distribute unique pricing across all channels provides a competitive advantage that can grow alongside new demand.
When the mortgage industry reaches the light at the end of the tunnel, lenders who invest internally now will be positioned to take on soaring demand and retain talented teams. Polly possesses both the solutions and the mission to take your business to new heights as the market starts to shift.