We’ve seen Millennials emerge as a home-buying force in the past year, quickly becoming the largest demographic purchasing homes. This comes after years of worry that debt and economic concerns would keep them from moving out and buying houses.
The housing market environment is transitioning to a phase we haven’t seen in years. As home sale prices reach record highs and rates continue to rise, lenders are looking for new ways to create revenue outside of traditional refinancing.
The housing market has hit a little lull. It was inevitable. July marked the 77th consecutive month of median home price growth (that’s more than 6 years), so we’ve known that prices would eventually hit a ceiling.
We kicked off the year with a list of the top trends and predictions slated to hit the nation’s housing and construction industries throughout 2018. Driven substantially by a strong economy, increased housing demands, and a lack of inventory, this year was expected to see exponential growth within both the housing and construction industries.
As a technology company, we love to create software solutions to solve everyday problems. It’s in our DNA and arguably the reason many of us come to work every day. That means we’re always hard at work building features to make life easier for our clients and partners.
The traditional construction loan administration process requires loan administrators to manually gather portfolio data from various spreadsheets and paper files when assembling reports. Without digitization, this highly manual and inefficient process can cost credit departments days, or in some cases weeks, of valuable time, and as a result, many financial institutions only review comprehensive portfolio data when deemed completely necessary.
The long-running narrative on Millennials has been that they are living in their parent’s basements, too crippled by debt and low-paying jobs to afford to live on their own. Quickly, though, that story is changing.
The real value in digitization is the data modern technology can unlock.
Tell me if you’ve heard this story before: a chief lending officer or chief credit officer is asked to report on the overall health of their construction loan portfolio -- best producing team members or loans, under-performing elements, effectiveness of the draw process, or some other key performance metrics.
We’re no strangers to the fact that asking people to change existing ways of operating can be a difficult ask. As a software company, we’re used to being greeted with skeptical eyes -- so much so that we’ve grown comfortable with it and use conversations with prospective clients as learning opportunities more than anything. In fact, thanks to those conversations, we created an entire blog series and ebook devoted to helping companies successfully manage software change.