Even with the surge of technological innovations across all the industries, mortgage industry has been relatively slow in adapting itself to the changing times. With more than 90% prospective homebuyers going online to look for properties, less than 10% lenders are giving a turnkey digital experience to its borrowers.
However, now that financial technology start-ups are bringing their focus back to the mortgage industry, new and exciting innovations have been introduced to make the lending process more unified.
Here are top 5 ways mortgage processes are being reinvented with the use of technology:
Quick and Efficient Filing of Documents
Mortgage / loan file can sometimes exceed 500 pages, making documentation an integral part of the process. The borrowers and lenders often have to go back and forth on documents that have already been supplied or are required at the last minute. However, with digitization of the process, it has now become easier to pre-file credit information, pay stubs, tax forms and other details in 1003 form. The lenders are now able to verify all the documents from the source itself, successfully accelerating the review process.
Improved Operational Efficiency
Many lenders unanimously agree that with the innovation in mortgage industry, they have been able to drive operational efficiency into their processes. Unlike earlier times, the borrowers and lenders now have the access to the same portal that allows both the parties to have as much information as the loan officers. As a result, they can work in complete collaboration towards a common goal, that is successful loan filing and approval.
Quick Adjustment to Changing Regulatory Environment
Since the subprime lending crises, the mortgage industry wants lenders to lend more responsibly and adhere to stricter lending practices. As a result, new regulations have been introduced, most recent ones being TILA/RESPA Integrated Disclosure (TRID) and Qualified Mortgage (QM) rules. TRID has been viewed by many lenders as a highly expensive regulation compliance. Smart lenders already know that with time, these compliances will continue to be an encumbrance. Hence, the surest way to deal with it is through technology that can be scaled to the dynamic regulatory environment quickly and efficiently, without impacting the borrower experience.
Making Lending Profitable Again
The recent low-interest lending environment, together with projected decline in the volume of mortgages is making it difficult for the lenders to lend profitably. It can cost as much as $8000 for a lender to finish each mortgage process. Most of this cost goes into paying the employees to process tasks such as repeated requests, translation of documents, missed items etc. These inefficiencies are not only expensive but also time consuming. However, by leveraging the technology through automation, it is possible to reduce the costs and time associated with these tasks. This will not only help the lender in smooth processing of each file, but also help the borrower in saving huge sums of money. It also allows lenders to dedicate their human capital towards other high value, expert tasks.
Reduce Mortgage Time
Clients are looking for speedier processes and faster applications. They want their loans to close fast so that they can move on to the next level. The customers are likely to choose lenders who are able to deliver that in an efficient manner. Technology is helping the mortgage industry to align their processes with modern standards and help them achieve happier customers. The loan officers are now able to help the borrowers real time, thereby empowering them in the self-serve process. The borrowers are also confident about helping themselves knowing that expert help is always just a click of a button away.
Adapting to changing time is a pre-requisite for faster and quality mortgage services and Expert Mortgage Assistance has always been in the forefront of embracing technology to deliver maximum benefits to its clients. We have a team of experts who keep a tab on the latest set of technological tools in the market, and based on their recommendation integrate the most promising technology into our system. So, it takes us almost nothing to process complex requirements in quick time. Outsource loan processing requirements and be rest assured about the way it is handled.