Demand for new housing is on the rise at a time when the mortgage industry is pursuing ways to digitize the construction loan process.
Homebuilder confidence in the market for new single-family housing rose a point in April to 63, according to the National Association of Home Builders/Wells Fargo Housing Market Index; a reading above 50 suggests more builders view conditions as “good” than “poor.”
“Ongoing job growth, favorable demographics and a low-interest rate environment will help to modestly spark sales growth in the near term,” said NAHB Chief Economist Robert Dietz in a press release. “However, supply-side headwinds that are putting upward pressure on housing costs will limit more robust growth in the housing market.”
While shortages in construction labor and buildable lots prevent builders from maximizing their capacity for new housing, they are still more sure about the market’s potential. This comes alongside the mortgage industry’s push to streamline financing options for new homes, suggesting they, too, see value in investing in this market.
Mortgage company Calyx Software just integrated with construction loan management software provider Land Gorilla to streamline and mitigate the risks associated with the construction loan process. Users of the Calyx Path loan origination system now have access to Land Gorilla’s Construction Loan Manager, where they can navigate portfolio risk, loan performance and compliance tools.
“Today, everyone involved in the construction loan process wants a digital experience. That is why we’re excited to partner with an innovative LOS like Path. Our integration provides lenders and project stakeholders with a fully digital and seamless experience,” Sean Faries, CEO of Land Gorilla, said in a press release.
“For example, lenders can now deliver a customer-centric experience that will allow borrowers and their builders to manage critical tasks associated with their project, such as draw requests, change orders, budget balances, electronic-signature processes, lien controls, inspection requests and document management,” he continued.