Mortgage loan software beneficial with low rates

With record-low mortgage rates, lenders should ensure that they are using quality loan management software to create payment plans for borrowers.

With some of the lowest reported mortgage rates hitting the housing market, lenders should ensure that they have quality loan management software. That way, hopeful homeowners can have a payment plan created that is unique to their financial needs.

According to the median forecast in a Bloomberg survey, purchases of existing dwellings held a 4.75 million annual rate last month. Additionally, Freddie Mac reported last week that the rate for a 30-year fixed mortgage dropped to an all-time low of 3.34 percent. The average 15-year rate slipped to 2.65 percent, also a record, from 2.69 percent.

"Continued weakness in housing – reflected in falling prices, low rates of new construction, and historic levels of foreclosure – has proved a powerful headwind to recovery," Federal Reserve Chairman Ben Bernanke, said last week. "It is encouraging, therefore, that we are seeing signs of improvement in the housing market in most parts of the country."

Bernanke added that while tighter credit standards made sense after the collapse in the subprime mortgage market, now the restrictions could be preventing creditworthy borrowers from buying homes. This would slow down the revival in the housing market and hinder the overall economic growth.

William Wheat, chief financial officer at D.R. Horton, said at a November 15 conference that the industry is definitely starting to see improvement off of an extremely low housing bottom. Employment is a major driver of housing, he explained, and it's good that there are small amounts of job growth, as it will help push housing forward.

In addition to mortgage loan software, lenders should invest in an amortization schedule for loans to help push the economy forward. With those tools, creditworthy borrowers can have a mortgage that will not put any further financial burdens on them and monthly payments will be an appropriate amount.