The right lender software can be a huge boon to any financial organization. As the economy continues to recover, and various industries individually affect the lending market, institutions need to ensure that they make sound decisions when it comes to borrowers.
According to the latest unemployment report from the Bureau of Labor Statistics, adults between ages 25 and 34 are struggling, and that could affect the housing sector. Specifically, the BLS said that just 74.8 percent of young adults are working, which is the lowest number in 12 months and far below normal levels.
Mark Palim, vice president for applied economics and housing research at Fannie Mae, told HousingWire that a lack of job security is preventing many young adults from owning a home. According to Palim, student debt is also a huge hindrance, because it is keeping younger borrowers from coming up with enough money to make a down payment on a home.
“The focus of the industry now is hopefully on sustainable homeownership,” Palim said, adding that people want a mortgage they can actually afford, which is something many homeowners struggled with during the recession. “Someone who doesn’t have a job and has a lot of student debt shouldn’t be buying a home.”
Additionally, Pew Research found that one in three Millennials are still living with their parents—a trend that has not been so prevalent since the 1960s.
Financial organizations of all sizes need to remain current on news like this. Everything from unemployment to the housing market could affect potential borrowers, and having current loan management software will help banks stay on top of all lending scenarios. Lender software is an important tool to keeping a company profitable while still assisting borrowers when possible.
