Mortgage industry witness urges GSE competition and tech adoption to lower borrowing costs

WASHINGTON — Lee Jelinek, chief innovation officer at United Wholesale Mortgage, told the Senate Banking Committee that competition among the government‑sponsored enterprises and greater use of technology could reduce mortgage costs and improve access to credit.

“Homeownership remains to be the most significant source of financial stability for American families,” Jelinek said in his testimony. He identified three headwinds: higher interest rates, limited housing supply and costs embedded in the mortgage process.

Jelinek advocated reevaluating Federal Housing Finance Agency rules that he said curtail competition among the GSEs and limit innovation. He singled out FHFA’s “new activities rule” as restricting the agencies’ ability to pilot reforms. On the consumer side, he urged wider adoption of virtual appraisals, appraisal waivers and improved title‑insurance processes to cut costs without loosening underwriting standards.

“Competition among the GSEs via pilot programs and innovation means our advances in technology can ultimately be accessed by more Americans,” Jelinek testified, adding that greater competition could also encourage credit bureaus to improve accuracy and reduce consumer cost.

Why it matters: Mortgage origination costs and higher rates are key barriers for potential buyers. Industry witnesses argued that operational efficiencies and regulatory adjustments could modestly lower transaction costs and improve loan availability without increasing borrower risk.

Looking ahead: Senators discussed potential regulatory and legislative measures to encourage competition and to pilot appraisal and title innovations. Jelinek invited committee members to visit UWM’s campus for follow‑up discussions.