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.

Home prices have increased in the U.S. by 5.4 percent year over year since October 2017. On a month-over-month basis, prices increased by 0.5 percent in October 2018, from 0.4 percent in September, according to the CoreLogic Home Price Index.

Home prices will increase by 4.8 percent on a year-over-year basis from October 2018 to October 2019, according to the CoreLogic HPI Forecast. Over the next month, however, home prices are expected to decrease by 0.7 percent from October to November 2018.

The CoreLogic HPI Forecast is a projection of home prices calculated using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“Rising prices and interest rates have reduced home buyer activity and led to a gradual slowing in appreciation,” said Dr. Frank Nothaft, chief economist for CoreLogic. “October’s mortgage rates were the highest in seven and a half years, eroding buyer affordability. Despite higher interest rates, many renters view a home purchase as a way to build wealth through home-equity growth, especially in areas where rents are rising quickly. These include the Phoenix, Las Vegas and Orlando metro areas, where the CoreLogic Single-Family Rent Index rose 6 percent or more during the last 12 months.”

According to the CoreLogic Market Condition Indicators, an analysis of housing values in the country’s 100 largest metropolitan areas based on housing stock, 35 percent of metropolitan areas have an overvalued housing market as of October 2018. The MCI analysis categorizes home prices in individual markets as undervalued, at value or overvalued, by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals (such as disposable income). Additionally, as of October 2018, 24 percent of the top 100 metropolitan areas were undervalued, and 41 percent were at value.

When looking at only the top 50 markets based on housing stock, 44 percent were overvalued, 16 percent were undervalued, and 40 percent were at value. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10 percent above the long-term, sustainable level. An undervalued housing market is one in which home prices are at least 10 percent below the sustainable level.

In 2018, CoreLogic together with RTi Research of Norwalk, Connecticut, conducted an extensive consumer housing sentiment study, combining consumer and property insights. The study assessed attitudes toward homeownership and the drivers of the home buying or renting decision-making process. When asked about the important aspects of homeownership, owners cited “a place to feel safe” as very important and said that having something to call their own was the most important factor. Additionally, both renters and owners felt a home is an investment and a place to raise a family and counted those factors among the top reasons to own a home.

California renters aspire to purchase a home eventually, despite how expensive it is.

In fact, 50 percent of California renters rated homeownership as very important or extremely important, and 80 percent of renters want to own a home someday, according to a consumer survey released by the California Association of Realtors.

Renters see the advantages of homeownership as more than just a roof over their heads. Twenty-one percent of renters said homeownership would provide them with a good long-term investment, while 19 percent said it would give them the freedom to do what they wanted with their home. Twelve percent of renters said a benefit of homeownership would be having the stability to plant roots.

"It's encouraging that the majority of renters still believe buying a home is more than just a shelter over their heads," said Jared Martin, president of the California Association of Realtors. "While they may not be there yet, many renters are motivated to become homeowners as they recognize the many benefits."

Fully 45 percent of renters said they would purchase a home if they got a new job, a raise, or a promotion, while another 40 percent said they would be motivated to buy a home if they got married or were starting a family.

Renters who want to become homeowners someday are generally younger and more diverse. They have been renting a median of eight years and are at a median age of 35, with over half being millennials. Nearly three-fourths are non-white, and almost half are Hispanic. Renters who plan to buy have a median income of $40,000 and spend a median of 45 percent of their income on housing costs.

While many renters want to own a home, they either feel they are not in a financial position to become a homeowner or don't have the financial knowledge. Only 40 percent of renters are familiar with the credit and loan criteria needed to purchase a home.

Further hindering renters from becoming homeowners, many renters also don't know how much down payment is required, with 14 percent under the impression that more than a 50 percent down payment is needed for a home purchase. Nearly 40 percent of California renters believe that more than 20 percent is required to become a homeowner.

This misconception results in many renters delaying their home purchase or possibly even giving up on the dream of homeownership. California renters pay a median monthly rent of $1,300, but the cost of renting varies across the state. Renters who live in the Bay Area pay the highest rent at a median of $1,800, while those in Southern California pay a median of $1,390.

In general, renters spend 45 percent of their income on housing, with nearly seven in 10 spending more than the recommended 30 percent. The rent burden is especially heavy for the younger generations, with millennials spending half their income on rent. California renters have lived in their current home a median of three years but have been renting for a total of nine years.

While the majority of renters are unsure about how much longer they plan to live in their current residence, 25 percent plan to move next year. Around 66 percent plan to rent after moving from their current residence, with older generations more likely to continue to rent than younger ones. In a sign of optimism, 75 percent of those who plan to rent again said they want to own a home eventually.