A new report from the Federal Reserve Bank of New York and New York University issued by the National Bureau of Economic Research found that technology-driven lenders have created efficiencies in the home lending business that give them an edge over traditional lenders. These fintechs are able to process loans quicker, can better handle movements in demand and have fewer loans that end up defaulting. They are also gaining on their traditional brethren, with the study finding that fintech lenders' market share jumped to 8% in 2016 from 2% in 2010. In 2010, the fintechs originated $34 billion in mortgages. That stood at $161 billion as of the end of 2016. A lot of the growth came from Federal Housing Administration loans.
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