Technological improvements have made the processes associated with mortgage originations and transactions much faster for consumers as well as lenders. But what borrowers may see as easy to use systems are the same things that real estate agents and loan officers could consider risky or possibly illegal.
Lenders can do something to help protect borrowers from themselves by ensuring that procedures and policies within the company invite borrowers to participate in the application process safely and securely. One of the primary focuses of this should be keeping a high level of data integrity.
This means that shortcuts in order to focus on efficiency are actually not the answer. A recent research study indicated that consumers have a large preference for completing all of their mortgage transaction online.
Unfortunately, however, the mortgage industry has been slow to be able to respond to this and to build the compliance ready applications that could manage this type of workload. This is as is true with the adoption of any new technology, there are growing pains on both sides and the mortgage lenders have to be aware of potential risks that they could expose themselves or others to by setting up a program too quickly without the proper testing and verification.
The biggest concern, as shared by Fannie Mae for all lenders across the country has to be about security when a mortgage is originated and completed online. Some of the biggest concerns include data protection, confidentiality, and archiving. Lenders should be prepared with the systems they can implement today to help address all of these issues and how they can make a potential marriage between consumer demands for online information and safety as well.
Lenders should evaluate their current security system and determine where there are problems and potential risks. Approaching these issues with an open mind can help lenders identify opportunities to grow as well as help to prevent immediate security issues. Although technology can certainly make many aspects of the borrowing process much faster and seemingly easier, it has to be approached with the right mindset in order for security to be upheld in a way that works for both lenders and borrowers. Conducting regular security audits may help to expose areas of concern and give lenders the chance to maximize technology without the downside of getting burned down the road.
Lenders can remain knowledgeable about technology before, during, and after the closing process to stay on top of their game.