The current unstable state of the market still presents difficulties for mortgage brokers. Mortgage products fluctuate in tandem with the market, requiring shorter notice periods for withdrawals and lenders of all sizes to adjust to the changing landscape.

But as Acre CEO Justus Brown points out, "This is all out of a broker's control," so keep that in mind.

He goes on, "It's been difficult for them, and as a result, many are looking inward at their own operations for innovative ways to be more efficient while also adding value to clients."

Mortgage supplier Freddie Mac says that although things have been difficult for mortgage brokers, things could get a little better for the remainder of the year.

According to its projection, there will be a rise in the number of purchases and refinances in 2024 and early 2025, and as house sales and property values rise, so too will the monetary worth of loan originations.

This is encouraging for the mortgage sector, which has been shaken by the post-pandemic turmoil, but there are still challenges facing the market.

These include low stock levels and continuous tight supplier circumstances in spite of higher customer demand.

Mortgage brokers: Using technology to increase efficiency

An increasing number of experts in the mortgage brokering sector are seeing the benefits of technology in maximizing efficiency and mitigating the present macroeconomic effect, even as they struggle with these persistent challenges.

According to Brown, "market conditions have led to a growing recognition of the role technology plays in changing the industry, and it's likely that their current tools don't meet the needs of modern broker businesses."

Generative artificial intelligence (Gen AI) is currently one of the top technologies generating buzz across the board in the financial services industry. However, Brown cautions that in a highly regulated industry like the mortgage sector, compliance with regulations must come first.

He states, "It's easy to get caught up in the hype of AI, but the technology is still in its infancy." "We have to remember that the world in which financial advisors work is regulated. There are checks and balances to ensure you are compliant at every stage of the advise journey; it's not as easy as directing the computer to produce a suggestion and delivering it to the customer.

"A general-purpose LLM like ChatGPT is not trained with specific enough data to provide useful outputs, or at least would require heavy rewriting to be compliant, as is the case with so many areas where Gen AI is promising."

In fact, Brown notes that mortgage brokers will eventually be able to "envisage a future custom-trained system which uses past cases to understand how to describe customer situations," even while they are unable to fully utilize Gen AI for regulatory reasons. But "we're not there yet," he continues.

Although the mortgage business does not have the same level of influence over Gen AI as other financial services sectors, there are still tools available to help brokers in their fight against economic instability.

By serving as a central center for marketing, sales, and other client-related activities, sophisticated customer relationship management (CRM) solutions are assisting brokers in upholding enduring connections with their customers, optimizing workflows, and improving business operations.

In some places, loan origination software is assisting brokers in streamlining the complete loan origination process, cutting down on paperwork and manual procedures while increasing accuracy and efficiency.

Brokers are utilizing various technologies like as document signing software, document gathering tools, and process automation tools to increase efficiency and maintain their competitive edge.

Mortgage brokers: addressing the demands of today's consumers

Of course, although technology helps mortgage brokers resist market volatility, it is as important to use it to satisfy client requests, as consumer expectations change along with market conditions.

"There is pressure on mortgage brokers to find the best offer for clients without placing them under excessive financial hardship or at risk of losing their home,” notes Brown, "especially when interest rates are increasing to near 15-year highs."

"By investing in cutting-edge technologies, you can create a much clearer picture of each client's financial status and enable brokers to provide comprehensive financial advice, including insurance, wills, and protection. This will increase homebuyers' options and lessen the burden for those looking to refinance or get a new mortgage, strengthening the bond between the broker and the client."

What makes mortgage brokers different from the rest

It is perhaps more important than ever for mortgage providers to offer diversity in order to draw in more customers amidst rising consumer demand.

According to Brown, this requirement for diversification is especially important for organizations with concentrated sources.

"I see more brokers than ever interested in diversifying their lead sources in this challenging economic landscape, especially if they are concentrated today," the broker states.

"Technology can make the difference between being left behind and standing out from the crowd. It is a great enabler in driving new business." As an illustration, we've begun assisting clients in revisiting their websites as well as their lead-capture and qualifying procedures, with excellent outcomes.

"We're seeing big networks and clubs like The Right Mortgage, Cornerstone, Paradigm, and PMS champion the use of new technologies like Acre to thousands of brokers," Brown says in closing, "because the market is becoming more digitalized."

"It is a new method for streamlining processes, enhancing operational efficiency, saving brokers time, and promoting simple compliance with laws and regulations like Consumer Duty."