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Although a lot of Millennials rent apartments or rooms, more and more seem to be buying homes, too. Even though the thought of doing the latter may seem intimidating, it doesn't have to be.
"Most Millennials aspire to be homeowners," Ishbia says. "A lot of what Millennials fear regarding homeownership is the unknown — things like the process and the qualifications associated with buying a home. They get misinformation from people about how much of a down payment is needed to afford a home."
United Wholesale Mortgage CEO Mat Ishbia says, “People don’t know about this, we have to educate them—that’s our job in this industry.” He continues, “Educate consumers, educate the Millennial generation, educate everybody—they actually think they need to save 10 or 20% down, that’s why they’re over there renting.”
What’s even worse, says Ishbia, is that many millennials aren’t even aware of what they don’t know. Fourteen percent of millennial potential homebuyers are not familiar with what a mortgage broker is, while 37 percent have heard about brokers, but have no idea as to what they do.
Millennials are expected to make up nearly one-third of the buyer pool in 2017, which should be another solid year for purchases. Mortgage brokers have a great opportunity to do more business with home-buying Millennials in 2017, and will be an easier task than one might have expected. It comes down to educating them on the mortgage process and why brokers are the best option, as opposed to overhauling their mindset. It is more a matter of coaching them through the process and dispelling myths versus giving them the hard sell.
"Nobody likes the mortgage. They want to buy the house," said Mat Ishbia, CEO of United Wholesale Mortgage in Troy.
But Ishbia said many millennials could benefit from researching their mortgage options first before shopping for a home.
He noted that the Fannie Mae HomeReady program only requires 3% down for creditworthy low- to moderate-income borrowers. The Freddie Mac Home Possible programs can require 3% or 5% down, depending on the program, for low- to moderate-income buyers or buyers in high-cost or underserved communities.
Closing times continue to shrink, however according to United Wholesale Mortgage CEO Mat Ishbia, that’s still not good enough.
Ellie Mae recently came out with a study that showed closing times for March were the fastest they’ve been in more than two years, since February of 2015. At 43 days, time to close dropped from 46 days in February.
Ishbia points out that 43 days is a long time, and gives lender the opportunity to market themselves to real estate agents and buyers by offering platforms that can close a loan in even 30 or 35 days.
Independent mortgage brokers operate in a challenging environment that requires continuous innovation to compete and succeed. United Wholesale Mortgage (UWM) recognizes what brokers need and provides the technology and expertise to support their continued success.
Getting an adjustable-rate mortgage can save homeowners money — but whether they actual put those funds to good use is another question.
Today’s ARM borrowers, however, may treat the windfall they receive from their mortgage-related savings differently to those who saw their rates fluctuate between 2010 and 2012, said Mat Ishbia, president and chief executive of lender United Wholesale Mortgage. “I’d be surprised if that’s what happens in today’s market,” Ishbia said. “People are more conservative.”
NAMB—The Association of Mortgage Professionals has announced that Troy, Mich.-based lender United Wholesale Mortgage (UWM) has become NAMB’s first Double Diamond Industry Partner under the association’s recently re-launched Industry Partnership Program.
UWM, the nation’s top lender for the past two years, also committed $500,000 to NAMB in 2016 to help the association launch its new KickStart program and become a founding sponsor of the program.
37-year-old Mat Ishbia is CEO of United Wholesale Mortgage (UWM), and while that may sound impressive enough, he also played basketball at Michigan State University for four years and went to three Final Fours.
Now, Ishbia’s years of dedication to basketball have helped him lead his billion-dollar mortgage company.