New products and agency partnerships could help improve the transition from companies known primarily for refinancing to lenders serving homebuyers.
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Less than three months after launch, Better says 40% of applicants have qualified for its “One Day Mortgage” product, an exponential growth rate as the spring home-buying season kicks in. We are growing.
Combined with alternative collateral programs and “buy now, reuse later” offers, Up to $3,500 in lender-paid credit If interest rates drop and homebuyers decide to refinance with Better within three years, One Day Mortgage will offer services to homebuyers from a company Better is primarily known for refinancing existing loans. We may assist you in transitioning to a company that aims to provide
To further that goal, better to use HouseCanary’s ComeHome search tool generated leads and also launched an agent referral program. $2,000 closing credit.
Grow your “One Day Mortgage” volume better
Better One-Day Mortgage Production as of April 5, 2023 | Source: Better.
The numbers don’t deter the mortgage giant, but Better said it had closed $250.5 million in One Day Mortgage loans as of April 5, up 339% from March 1. . So far, it supports Better’s claims that the certainty offered by One Day Mortgage will appeal to first-time homebuyers.
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Neka Ukpai
“We think the customers who will be most excited about this product will be those who are new to the housing market, have learned how to be responsible homeowners, and understand how much of a home they can afford. If there is room and whether it will be approved,” he said. Neka UkpaiHead of Financial Innovation at Better.
One Day Mortgage automates the application, verification and underwriting process and provides binding affidavits to eligible borrowers within 24 hours. Ukpai said his 99% of qualified applicants were Program requirements Receive a binding affidavit within 4 hours to submit documents such as bank statements, pay slips, W-2s, etc.
It will take a little longer to reach the closing table, but Better closed one buy loan in six days and 17 hours, Ukpai said.
Better’s One Day Mortgages are available in all 50 states to eligible homebuyers with a matching Fannie Mae or Freddie Mac mortgage, for salaried workers who pay at least a 3% down payment on their home purchase. “Close to agency” jumbo mortgages that exceed federal compliance limits but are underwritten in accordance with compliance guidelines are also eligible.
The top 10 states for one-day mortgage closures are Florida, Texas, California, Georgia, North Carolina, Illinois, New Jersey, Pennsylvania, Washington, and Tennessee.
Same day mortgage race underway
Fannie Mae and Freddie Mac employ technology that can automate property valuations, allowing many homebuyers to get loan approvals without an appraisal. This could allow more lenders to offer same-day mortgages.
Guarantee rate announced “same-day mortgage” in March Target property for evaluation abandonment. Borrowers must opt-in to AccountChek for automatic verification of income and assets. This excludes self-employed borrowers.
Ukpai said Better could do a One Day Mortgage with an assessment exemption, but it’s not required.
Rocket Mortgage has introduced a program called ‘Overnight Underlight’ for 2021. This ensures that eligible borrowers who submit their purchase requisition documents by 7pm will receive fully verified approval by the morning.
The technology Better employs to deliver a binding commitment letter within 24 hours is becoming available to other lenders, but Ukpai says all of his competitors are using it. We do not believe that we can or intend to use
“I think this should be the industry standard,” said Ukpai. “If it is possible to do this quickly, I think everyone should be leaning towards innovation and automation and figuring out ways to make life easier for their customers. Say.”
But in the short term, “many people are not going to do it because they don’t need to do it to make a profit,” Ukpai said. “They are perfectly happy with the profit margins and how the business is run. Simply put, they probably don’t see this as their greatest opportunity.”
When we announced One Day Mortgage at Inman Connect New York in January, Vishal Garg, founder and CEO of Better, said he believes Better also has an edge on the back end of the mortgage process. . Better, which launched last year, provides insight into the requirements of most mortgage-financing investors.
“Tinman Marketplace enhances One Day Mortgage by incorporating all investor requirements and investor bids, allowing the underwriting process to seamlessly adapt based on the investor to whom the mortgage is offered. said Garg in January. “There is no such system in the mortgage industry today. It had to be built completely from scratch.”
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Email Matt Carter