Independent Banker - June 2021 - 55

Staying ahead of the competition with digital
Community banks capture about 20% of the single-family
mortgage market, and they are working harder to maintain and
grow that business in a highly competitive market.
Bankers are continuing to deploy a variety of strategies to
maintain steady pipelines of mortgage business, including
increasing marketing and outreach, networking with real estate
agents and builders, and adding new loan products.
Fully digital mortgages have become a key tactic in
this campaign; the pandemic has accelerated consumers'
expectations of a paper-free experience. State laws allowing
electronic notarization and e-closings have helped make digital
mortgages possible.
" There have been a lot of things that have changed in the
last year to make it easier to get things done, and I think that is
only going to continue to accelerate now that we have started
down this path, " says Ron Haynie, ICBA's senior vice president of
mortgage finance policy.
First National Bank (FNB) in Pittsburgh launched a fully digital
home mortgage experience this spring that provides customers
with an intuitive and secure borrowing process, according to
Joseph Cartellone, FNB's executive vice president and director of
mortgage services.
FNB customers are now able to prequalify, receive preapproval
and apply online for a mortgage for an existing home, new
construction, renovation or refinancing from their device. They
can then upload documents via an online portal, electronically
sign their mortgage application and track its status. The
enhanced digital experience includes simplified applications
that can be self-guided or completed in consultation with a loan
officer or bank representative.
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inventory versus the 3.1-month supply
in February 2020. " We have seen some
cooling off of activity due to the limited
supply, " Evangelou says.
However, that isn't a new issue.
The past decade has seen consistent
underbuilding, according to
Evangelou. She estimates that the
housing market needs 5 million
to 6 million new homes to get the
housing supply to meet the demand.
Despite delays caused by weather,
construction finished the year with its
highest level since 2006. NAR expects
new single-family home construction
starts to hit 1.6 million units this year,
a 14% increase from 2020.
This construction will create
financing demand from both buyers
and builders. For example, some
homeowners may be reluctant to sell
because they fear they might not be
able to find their next house, and
instead opt to build a new home or
expand their current one.
" As such, refinancing and loans for
upgrades are expected to be robust in
2021, " Cartellone says, " as will home
equity loans and lines of credit. " 
Beth Mattson-Teig is a writer
in Minnesota.
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Independent Banker - June 2021

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