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The debate about which is the best type of investment is as old as investing itself. While no market is “crash-proof,” real estate is traditionally viewed as one of the best and safest (if not the safest) investment options available, for several reasons.

First, investi...

August 11, 2018

Zillow's big move into mortgage lending may hurt its profitability next year, according to Bank of America Merrill Lynch. The firm lowered its rating on the online real estate company's shares to neutral from buy, citing increasing concerns over its business model shif...

August 11, 2018

CAMP HILL, Pa.--(BUSINESS WIRE)--Rite Aid Corporation (NYSE: RAD) today announced that it has mutually agreed with Albertsons Companies Inc. (“Albertsons”) to terminate their previously announced merger agreement.

“While we believed in the merits of the combination with...

August 11, 2018

Nearly 400 Wells Fargo customers lost their homes when they were accidentally foreclosed on after a software glitch denied them the ability to modify their mortgages as they sought federal aid, the bank disclosed in a regulatory filing late Friday. The bank apologized...

August 11, 2018

CNBC Diana Olick breaks down the latest data on the housing market.

Rising home prices hit the mortgage industry hard last week. Total mortgage application volume fell 3 percent from the previous week, and 17 percent from a year ago, according to the Mortgage Bankers As...

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Editorials & Opinions

7 Ways Mortgage Lenders Can Become Leaders in the Millennial Lending Market

In today's mortgage lending market   the millennial generation presents an opportunity for lenders to capitalize on a emerging new market. Almost  91 percent of the approximately 87 million millennial “would be” home buyers planning to own a home in the future. This is a huge market opportunity and mortgage lenders can effectively approach and engage this demographic in the alternative lending market in three ways. Many millennials share similar  traits. They represent not only a cultural transformation but also a shift in the way this generation views its housing needs and wants. Millennials are educated but cash-strapped. Many are well educated but have high levels of student loan debt. In the U.S. alone, the average graduate in 2016 has $37,172 in student loan debt, a six percent increase from 2015. Millennials are tech savvy and diverse. They are accustomed to having instant access to data and are capable of conducting massive research and demand results quickly. The generation’s influx of immigrants also makes it a diverse population. This is a bonus market of over 12 million potential borrowers.  They buck the traditional major milestones. They are slow to buy a house, get married and having children,thus needing alternative lending programs.

Lenders can attract  millennial home buyers

Lenders looking to rebound in the real estate market will need to address millennials’ specific needs in order to remain ahead of more digitally enhanced competitors.s.

  1. Upgrade current technology and lending infrastructures

  2. Offer e-delivery of loan documents

  3. Build website portals and mobile apps to ease document emails

  4. Provide real-time status updates on the loan process

  5. Alternative lending product increased selection. Challenge traditional products. Focus less on debt burdens millennials face.

  6. Offering a more robust selection of stated no doc loan products.

  7. Provide financing for foreign nationals and immigrants

  8. Offer multi-family products. Many millennials love share housing

  9. Loosen or drop usual credit standards, Asset based loans

Becoming a leader in the Alternative

Mortgage lending market must come with an internal shift of  product strategy and current systems to a full digital format. - Editorial Board  .