TD Bank has deployed Roostify's technology to provide customers with a digital mortgage offering. The digital experience combines lending technology licensed from Roostify with an originator that gives TD Bank’s customers an accelerated, low-stress path to home ownership.

Access to an originator that can answer questions or resolve issues is an important factor in the level of customer satisfaction a borrower experiences, according to the J.D. Power 2018 U.S. Primary Mortgage Origination Satisfaction Study.

“Technology alone is not a magic bullet in this market; the key is knowing where to leverage it and where to layer in more traditional forms of one-on-one support,” said John Cabell, financial services practice lead at J.D. Power, told Mortgage Leader earlier this year.

The deployment now provides prospective homebuyers with useful tools to assist them in finding a loan that fits their needs and budget. TD Bank allows consumers to explore which loan products they qualify for, right from a simple-to-use web page. Consumers can then move on to apply for their chosen loan in minutes, and follow a streamlined, all-digital process for moving their loan through closing. With easy access to TD Bank’s expert loan team, homebuyers can enjoy both the convenience of a digital solution and reassurance of expert guidance as they navigate one of the most significant transactions of their lives.

“Today we're seeing consumers adopt digital offerings across all sectors. From filing taxes to managing investments to buying a car--consumers are doing these things completely autonomously and entirely online,” said Rick Bechtel, head of mortgage banking at TD Bank.

“When it comes to a mortgage, it's critical for prospective buyers to leverage both the digital and the human element. The digital aspect provides ease of use, while the human aspect provides expertise, and ultimately, peace-of-mind,” said Bechtel. “By leveraging Roostify for TD's Digital Mortgage, we're able to provide borrowers with online capabilities in addition to face-to-face guidance and support. This is the game changer for today's buyers – digital when they want to handle it on their own, and human when they need the help.”

In addition to the improved online experience, the new solution rolls out enhanced tools to help TD loan officers connect with potential buyers. Using Roostify’s relationship management application, TD Bank’s loan officers can easily manage their leads, freeing up more time to assist prospective buyers. Once a lead becomes an applicant loan officers can track the status of the mortgage loan, who the participants are, and any outstanding requirements to move forward, helping their customers close on time.

“The new TD Bank Digital Mortgage improves the lending process for both consumers buying a home, and loan officers managing their clients,” said Rajesh Bhat, CEO and co-founder of Roostify.

LoanStreet Inc. has closed a $6.5 million funding round, bringing total investment in the company to $9 million.

This round was led by Valar Ventures, with participation from Third Prime Capital, Rosecliff Ventures, Ride Ventures, The Gramercy Fund and other notable investors. LoanStreet is the first fully-integrated online platform that streamlines the process of sharing, managing, and originating loans,

"Developing disruptive technologies for heavily regulated industries requires a rare combination of business, legal and regulatory expertise," said James Fitzgerald, general partner and co-founder of Valar Ventures. "Ian and the team at LoanStreet have exactly the right backgrounds--and are the right entrepreneurs--to bring innovation to credit unions, banks and other lenders that are often underserved by emerging technologies. We are excited to be partnering with them."

LoanStreet offers lenders tools that historically were only available to large-scale financial institutions with unlimited budgets. LoanStreet's turnkey, integrated lending solution allows all lenders to establish new sources of revenue, enhance balance sheet management, scale loan purchases and sales while strengthening financial and regulatory reporting.

"With support from our investors we look forward to unlocking opportunities for lenders of all sizes and transaction volumes,” said Ian Lampl, CEO of LoanStreet.  “The power of LoanStreet's network and technology gives lending institutions access to additional sources of profit, diversification, and transparency while lowering risk."

It’s too soon to know if the current negative trends, such as limited housing supply and the effect of higher rates, which have defined the mortgage market in 2018 will continue into next year. On the other hand, it is possible that the market will adjust and resume modest growth, according to the November Forecast from Freddie Mac.

“Almost all the trends in the U.S. housing market have been negative in recent months as housing market activity continues to adjust to higher mortgage rates,” said Sam Khater, chief economist for Freddie. “If new home sales are to resume growth in 2019, builders might have to shift their focus to more modestly priced homes and smaller sized homes to help offset housing affordability concerns. But with cost pressures pinching profitability, this will be a significant challenge.”

Several highlights from the Forecast are as follows:

• Expect GDP growth to average 3 percent in 2018 before slowing to 2.4 percent in 2019 and 1.8 percent in 2020.
• Expect total home sales to decrease 1.6 percent to 6.02 million in 2018 before slowly regaining momentum and increasing 1 percent to 6.08 million in 2019 and 2 percent to 6.20 million in 2020.
• Expect home prices to increase 5.1 percent in 2018 with the rate of growth moderating to 4.3 percent in 2019 and 2.9 percent in 2020.
• Expect single-family mortgage originations to decline 9.9 percent year-over-year to $1.63 trillion in 2018, falling slightly to $1.62 trillion in 2019 and dropping e to $1.60 trillion in 2020. The performance is the result of shrinking refinance activity.
• Adjusted for inflation in 2017 dollars, an estimated $14.2 billion in net home equity was cashed out during the refinance of conventional prime-credit home mortgages in the third quarter of 2018, down from $18.3 billion a year earlier and substantially less than the peak cash-out refinance volume of $102 billion during the second quarter of 2006.

House prices rose 1.3 percent in the third quarter of 2018, according to the Federal Housing Finance Agency House Price Index.  House prices rose 6.3 percent from the third quarter of 2018 to the third quarter of 2017.  FHFA's seasonally adjusted monthly index for September was up 0.2 percent from August.

The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.

Among the most significant findings are the following:

• Home prices rose in 50 states and the District of Columbia between the third quarter of 2017 and the third quarter of 2018.  The top five areas in annual appreciation were:  1) Idaho 15.1 percent; 2) Nev. 15.0 percent; 3) Wash. 10.6 percent; 4) Utah 10.0 percent; and 5) Colo. 9.2 percent.  The areas showing the smallest annual appreciation were:  1) Alaska, 0.2 percent; 2) N.D. 1.0 percent; 3) La: 1.5 percent; 4) D.C.: 1.6 percent; and 5) Conn: 2.2 percent.
• Home prices rose in 99 of the 100 largest metropolitan areas in the U.S. over the last four quarters.  Annual price increases were greatest in Boise City, Idaho, where prices increased by 20.1 percent.  Prices were weakest in Honolulu where they fell be 5.2 percent.
• Of the nine census divisions, the Mountain division experienced the strongest four-quarter appreciation, posting an 8.9 percent gain between the third quarters of 2017 and 2018 and a 1.5 percent increase in the third quarter of 2018. Annual house appreciation was similarly weak in the New England, Middle Atlantic, and West South Central divisions, where prices rose less than 5.0 percent between the third quarters of 2018 and 2017.