Investopedia\u00a0forecasts that Fintect will disrupt the mortgage market, given that Fintech has already entered payments, banking and financial advisory markets. The article shows that non-bank mortgage lenders have taken a much larger market share in mortgage\u00a0market since the subprime crisis in 2008, which provides the potential for fintech to grow in this market. It also identifies that “62% of respondents under 35 who bought a home this year stated that they\u2019d use a mobile app to complete a mortgage application, if available from their lender. And 20% of buyers of all ages weren\u2019t happy with their lender, providing further support that there is demand for a new type of mortgage service.” \u00a0In my opinion, the article has a point, but the disruption from Fintech on the mortgage market would be limited in the near future due to regulatory issues.<\/p>\n
I agree with the article that because of the benefits of Fintech in mortgage market, such as lowered fees and reduced processing time, \u00a0the demand for more automated mortgage process is growing. Therefore, loan application and approval process would become paperless and more automated. However, one of the biggest challenges facing fintech in mortgage market is regulation. The single fact that online lenders are not considered banks and therefore need to “comply with the standards of 50 individual state overseers rather those of a single centralized (federal) regulator” inevitably makes development of fintech technology more challenging for companies who would like to deliver mortgage service across the country.<\/p>\n
Source: 1.http:\/\/www.investopedia.com\/articles\/personal-finance\/011917\/how-fintech-can-disrupt-14t-mortgage-market.asp<\/p>\n
2. https:\/\/www.bloomberg.com\/gadfly\/articles\/2017-01-19\/newfangled-fintech-meets-oldfangled-financial-regulators<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Investopedia\u00a0forecasts that Fintect will disrupt the mortgage market, given that Fintech has already entered payments, banking and financial advisory markets. The article shows that non-bank mortgage lenders have taken a much larger market share in mortgage\u00a0market since the subprime crisis in 2008, which provides the potential for fintech to grow in this market. It also … Continue reading Can Fintech Disrupt the $14T Mortgage Market?<\/span><\/a><\/p>\n","protected":false},"author":1802,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"qubely_global_settings":"","qubely_interactions":"","kk_blocks_editor_width":"","_kiokenblocks_attr":"","_kiokenblocks_dimensions":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-333","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"gutentor_comment":0,"qubely_featured_image_url":null,"qubely_author":{"display_name":"Max","author_link":"https:\/\/blogs.scu.edu\/finis\/author\/tgmax07\/"},"qubely_comment":0,"qubely_category":"Uncategorized<\/a>","qubely_excerpt":"Investopedia\u00a0forecasts that Fintect will disrupt the mortgage market, given that Fintech has already entered payments, banking and financial advisory markets. The article shows that non-bank mortgage lenders have taken a much larger market share in mortgage\u00a0market since the subprime crisis in 2008, which provides the potential for fintech to grow in this market. It also…","post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts\/333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/users\/1802"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/comments?post=333"}],"version-history":[{"count":1,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts\/333\/revisions"}],"predecessor-version":[{"id":343,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts\/333\/revisions\/343"}],"wp:attachment":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/media?parent=333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/categories?post=333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/tags?post=333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}