The Mortech Blog


Can Raising the Fed Funds Rate be Good for the Housing Market?

Posted by Lori Rezac on Mar 28, 2017 12:30:01 PM

As many know by now, the Federal Reserve recently raised the Fed Funds rate by 25 basis points. Although this is not directly linked to increasing mortgage rates, many fear this will lead to just that. Higher mortgage rates typically leads to a negative impact on home affordability with fears of it derailing the housing recovery entirely. One person disagrees. Rick Sharga has written a commentary in HousingWire, Why rising Federal Funds rates might be good for the housing market, detailing out his reasons why the increase in the Federal Funds rate may be good for the housing industry.


First, there are two more rate increases expected this year. This may drive many off the fence early in the year and into the housing market before rates increase more, stimulating the economy.


Second, increasing rates forces lenders to loosen lending standards to get more borrowers approved. There are fewer refinances available in this type of rate environment so lenders will try and bring in more purchases. The higher mortgage rates will allow lenders a bit more cushion to take on more risk.


Finally, the 25 basis point increase is much less than the 75 to 100 basis point increase that analysts were expecting. This will most likely cause the rate increase to have a less significant impact on mortgage rates. With these predictions, we could see the strongest spring-selling season in years.


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Mortech APIs: The New Standard

Posted by Brian Hall on Mar 23, 2017 12:56:49 PM

The toughest part about bringing information together from several different sources is compiling it all into a single, cohesive body that ties together. Imagine you have 100 different sources, all speaking in different languages and accents, with different mannerisms and phrases. When you’re putting this all together, you need to make it one language and style, so as not to confuse those reading it. You’d probably have one standardized language and writing style that you’d transpose everything to, and using that, you could put your source material together. This is exactly what Mortech APIs do with leads every day.

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An Argument for the eMortgage

Posted by Lori Rezac on Mar 15, 2017 12:31:35 PM

In an article written by Rick Triola and posted on MReport, Endorsing the eMortgage takes a look at why companies have not embraced the eMortgage process. Many have been waiting for the industry to update their out-of-date processes, but there seems to be something holding them back. This article gives a response as to why many of the concerns mentioned by those in the industry are unfounded and only seem to be blocking them from moving into the future of mortgage lending.

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Application Automation: The Speed You Need

Posted by Brian Hall on Mar 13, 2017 1:59:11 PM

Often times, lenders focus on how they’ll sell a prospect on a loan when they have a conversation with them. It’s the simple idea of having a sales pitch ready when a potential borrower walks through the door. But what many lenders might not realize is the number of borrowers they could be losing before they’ve even had a chance to talk with them at all. When submitting a mortgage application, the experience a borrower goes through is the first thing that determines if they’re going to stick through the entire online application process, and having a slow, time-consuming, 1003 applications can cause a lot of borrowers to stop the mortgage process when they’ve only just started.

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Third Party Origination – Staying on the Same Page

Posted by Brian Hall on Mar 6, 2017 12:58:44 PM

One of the biggest challenges for third party originators can be keeping all of your lenders on the same page. The more lenders you have, the harder it can be to keep everyone updated on rate sheets, pricing, and your different borrowers and who is assigned to whom. Keeping these things in check is key for third party originators, though, as doing so keeps your business running smoothly and efficiently.

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A Single, Trusted Source for Mortgage Rate Auto Quoting

Posted by Brian Hall on Mar 3, 2017 12:15:36 PM

We often talk about the importance of putting your rates online. Doing so gives your business exposure to thousands of online borrowers, on a platform that is still growing and completely changing the way the entire mortgage industry operates. Our online auto quoting tools are one such way that you can gain that increased exposure for your business. Mortech is the trusted source to provide mortgage rates to sites like Zillow, Lending Tree, QuinStreet, and Smart Asset, processing millions of transactions daily across those marketplaces. And as more transactions happen and more online borrowers are exposed to your business, people start to take notice.

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Mortech Listed to HousingWire TECH100™ for Fourth Consecutive Year

Posted by Brian Hall on Mar 1, 2017 2:41:50 PM

Mortech has been named to HousingWire’s HW TECH100™ list of the housing economy’s most innovative companies for 2017, as announced by HousingWire earlier today.


This distinction is Mortech’s fourth-consecutive year of being recognized for its innovation in mortgage technology solutions, which have streamlined mortgage pricing, secondary desk, online rate quoting, and lead management operations for mortgage lenders across the country. The TECH100™ was created to recognize mortgage technology companies who are transforming an industry that sees more growth in, and reliance on, technology each year.


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Spotlight on Monthly Complaint Snapshot from CFPB

Posted by Lori Rezac on Feb 23, 2017 12:39:17 PM

Mortgages had the spotlight in the Consumer Financial Protection Bureau's (CFPB) monthly compliant snapshot. Many are experiencing problems with mortgage servicing, escrow accounts, and resolving loan problems.

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Mortgage Hedging – When Should I Hedge?

Posted by Brian Hall on Feb 22, 2017 12:25:53 PM

A growing question in the mortgage industry is: “when should I think about mortgage hedging?” After all, for those with the capability to hedge, doing so should be a no-brainer. Properly hedging your pipeline mitigates risk and allows for the execution of trades on hedge products that allow you to make more money. And at the end of the day, who doesn’t want that?


Often when considering mortgage hedging, though, you have to think about the barrier to entry, and if you’re ready to jump in or not. While there isn’t an exact number that you can point to as the right amount of money you should be seeing each month before hedging, there’s a pretty defined range that you can see if you fall into. Typically, lenders want to be on the higher side of between $12-15 million dollars in monthly hedgeable loans before considering mortgage hedging. And while being closer to $12 million can work, it’s typically best to wait until you’re at least trending toward the higher end of that range before diving in.



But then, once you’ve evaluated how much money you’re seeing monthly in hedgeable loans, and you’ve decided that mortgage hedging is something you want to get into, what’s the next step? That’s where Mortech comes in.


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Secondary Marketing Tools, Third Party Originators and LOS Integrations – Speed and Tools in a Vital Time

Posted by Brian Hall on Feb 16, 2017 1:55:27 PM

Gone are the days of, “I’ll get that to you tomorrow”. Ever since the internet began powering our everyday lives, the world has become that of instant gratification, for better or worse. Everything from the news we get, to the way we communicate happens instantly, and waiting too long can drive those you’re communicating with crazy. These same ideas have spread into how businesses, and even entire industries, operate. As communicating and working together becomes faster and more simplified, utilizing these tools keep your business ahead of the curve.

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