Investor Review: ONLINE LENDING PLATFORMS
SPONSORED CONTENT From Paper to Pixels: The Rise of Data-Driven Lending Platforms THE SHIFT TO DATA-DRIVEN DIGITAL LENDING PLATFORMS IS ENHANCING THE MORTGAGE PROCESS.
KIAVI
M ortgage lending companies have adapted to an increasingly online customer base. Despite rapid technological advancements, the lending process has largely remained traditional, relying heavily on paperwork and phone calls. However, the industry is now experiencing a shift toward a more sophisticated, data-driven digital experience. HISTORICAL EVOLUTION OF MORTGAGE LENDING Traditionally, mortgage lending was based on trust and local knowledge, with borrowers engaging directly with lenders at banks. Decisions were often rooted in personal relationships, with manual verification processes being the norm. The mid-20th century introduced computers into banking, improving account management and transaction tracking. The late 20th century saw the internet revolutionize banking, leading to the emergence of online lending platforms. Initially, these platforms allowed borrowers to fill out loan origination forms online and receive follow-up calls from brokers, reducing the need for in-person bank visits.
Companies like Kiavi, a fintech pioneer, have utilized technology to simplify applications, enhance transparency, and increase accessibility in pricing and terms. The shift from manual to digital, data-driven transactions has allowed borrowers to receive immediate feedback on loan terms, significantly accelerating the buying process. THE ROLE OF DATA IN CUSTOMIZED SOLUTIONS A key advancement in modern lending is the collection and utilization of data. Advanced analytics and machine learning have enabled more accurate risk assessments and tailored lending products. Kiavi, for instance, uses personal and property data to calculate loan terms. Their pricing calculator analyzes factors such as property valuation, historical trends, and market dynamics. This approach provides borrowers with upfront certainty in loan terms, crucial for making quick and informed decisions.
particularly large, allowing for a quicker and more efficient lending process. Their data analysis also challenges conventional wisdom, showing that quicker property fixes and refinances yield better returns on investment.
THE FUTURE OF LENDING WITH AI
Artificial intelligence (AI) is set to further revolutionize lending by streamlining credit assessments and risk analysis, reducing the need for human intervention. Companies like Kiavi are experimenting with AI to automate internal policies and decision-making, enhancing the lending experience. Despite these technological advancements, personal relationships and trust remain crucial in real estate lending. The evolution of technology in lending reflects broader trends in financial services, where innovation drives change, enhancing efficiency, transparency, and accessibility for all.
KIAVI’S INNOVATIVE LENDING APPROACH
As a hard money lender, Kiavi focuses on the potential of the property rather than the borrower’s finances. Unlike traditional mortgages that emphasize borrower creditworthiness, hard money loans are backed by the property itself. Kiavi’s model doesn’t require extensive financial details unless the project is
With more than $12.3 billion in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors (REIs). Kiavi harnesses the power of data and technology to offer REIs a simpler, more reliable, and faster way to access the capital they need to scale their businesses. NMLS ID #1125207
THE RISE OF DIGITAL LENDING PLATFORMS
Recently, digital lending platforms have further leveraged the internet’s capabilities, offering automated decision-making and instant quotes.
54 | think realty magazine :: september - october 2024
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