Should Mortgage Lenders Fear Amazon And Google?
Tech giants like Google and Amazon have hinted towards entering the real estate finance business and while there is still plenty of time until they are able to do so, current mortgage lenders have a lot to consider in the meantime.
"Lots of power there, lots of intellect, and these companies understand digital," said loanDepot CEO Anthony Hsieh who believes the entry of companies like Google and Amazon are inevitable, according to National Mortgage News.
"There's no doubt they're going to widen their products and services. You have big brands making bets to add products and services. You have real estate service and lending companies looking at each other: we're friends. Or will that turn into foe?"
Of course there are plenty of barriers that could make it difficult for these companies to enter the mortgage lending market. With regulation and compliance being a major factor in mortgage lending operations, it would be difficult for either of these companies to jump right into the business.
"Besides licensing, there are various forms of net worth requirements to be a mortgage banker, including state regulations, warehouse lenders and secondary market partners," according to the report.
"Audited financials are usually required to show that lenders meet those requirements. While the costs may not be a burden for Amazon, going through the process is not a simple task."
There is also the question of the digital experience and what consumers actually want out of the mortgage lending process. Despite a huge shift in online mortgage applications one one-in-five are willing to apply for a mortgage online, according to the report.
To learn more about Amazon and Google's possible entry into the mortgage lending business, click on the image above.
