Lenders court Gen Z with ChatGPT-like tech

After years of relying primarily on rates to bring in customers, the increase in financing costs in the past year has made it clear that mortgage lenders need to step up their game. They not only have to attract new borrowers, but they have to retain them for referrals or future business down the road. When it comes to both tasks, there is a particular challenge in reaching younger generations, and the key to solving it is knowing how to communicate with them using data and technology. "They're used to interacting with brands that deeply understand their preferences," said Joe Welu, founder and CEO of Total Expert, a provider of technology used to manage customer relationships. "The communication they get is always in context.”

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Home ownership is a top goal for Gen Z, after reducing debt

Paying off existing debt is the top near-term priority for Gen Z college students, along with having financial freedom, goals which set them up for future home ownership, a study conducted for FinLocker, which provides a financial fitness app, found. More than 27% declared that their financial goal for the next two-to-five years is paying off student loans, auto loans and credit cards. Meanwhile, 10% said it was a goal for the next five-to-10 years. But the top goal in the five-to-10-year range is home ownership, with 29.6% of respondents prioritizing that.?

Select Portfolio Servicing turns to CoreLogic for tax, flood services

A cloud-based digital property tax platform connecting agencies, servicers and collectors aims to improve the handling of payments and cash management in connection with these services, according to CoreLogic. When asked whether the partnership involved a technology vendor or an outsourcing relationship, Jay Kingsley, president of mortgage solutions at CoreLogic, said in an email it will involve the delivery of "tax and flood via staff augmentation services" using automation. Tax, flood and portfolio monitoring have become increasingly important for servicers to manage accurately and with financial acumen.

Mortgage product availability down nearly 20% since last year

Mortgage credit tightened even further in May after hitting decade-lows earlier this spring amid industry consolidation and reduced capacity, the Mortgage Bankers Association said. The MBA's Mortgage Credit Availability Index, or MCAI dropped for a third straight month, finishing with a reading of 96.5 in May. The score came in 3.1% under April's 99.6 score and also represents a steeper year-over-year falloff of 19.6% from May 2022, when the MCAI clocked in at 120. The index was benchmarked to a score of 100 in March 2012, meaning credit is tighter today than it was at that time.

FEMA's flood insurance revamp drives premiums up as much as 700%: suit

Dozens of local and state governments are seeking to halt, and learn more about, Risk Rating 2.0, the Federal Emergency Management Agency's new methodology to determine flood insurance coverage. Plaintiffs say premiums for home insurance in Special Hazard Flood Areas [SHFAs], defined by the NFIP as at-risk areas where coverage is mandatory, have spiked as much as ten times their previous amount.? "Risk Rating 2.0 has created a growing sense of uncertainty in the minds of the home buying public," wrote Dan Mills, CEO of the Home Builders Association of Greater New Orleans [HBAGNO], in a declaration filed last week. "Uncertainty in the marketplace has caused reluctance to invest either in improvements to existing homes, or to purchase new homes."

20 bank servicers with the most subservicing for others in Q1

The top five residential servicers in this list have a combined unpaid principal balance of more than $1.8 trillion at the end of the first quarter of 2023. Many servicers saw a small decrease between Q4 and Q1, but one saw a significant increase of 89.20%. Read on to see which residential servicers are in the top 20 and how they fared in Q1.

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