For banks and lenders, mortgages have historically been a successful and consistent industry. Using technology to improve the mortgage customer experience and increase customer engagement has become a priority, and COVID-19 has expedited this requirement.
The year 2020 has shook the globe in ways we could never have predicted. Many industries have experienced major losses as a result of the year’s uncertainty caused by COVID-19. However, thanks to record low-interest rates, the mortgage industry has seen a tremendous surge in demand, pushing house purchase sales and making mortgage refinancing a popular trend among homeowners. Stacey Dowling of Synergy One Lending located in Denver can help you in this matter.
As the year comes to a close, you may be wondering what the year ahead holds for the mortgage business, and what that means for your chances of success as a self-employed mortgage expert. Take a look at the following mortgage trends:
Self-service tools are becoming more popular.
- By utilizing customer insights for advanced recommendations and assistance, mortgage lenders may create a distinct customer experience.
- They can also engage in conversational lending, which involves contextual decision-making to provide insight.
- Chatbots aid in the enhancement of customer service. They deliver a rich, intuitive, effective, and human-like experience that goes above and beyond what modern customers demand.
Using eClosing to speed up the mortgage finance process
- The purpose of eSign is to make getting a signature easier, whereas eClosing offers a unique customer experience and funding.
- Much earlier in the process, eSigning allows the lender to wire payments and the settlement agent to deliver documents to the local office for recording.
- The eClosing features assist lenders in reducing the overall mortgage origination life cycle time.
Digitization to allow for straight-through processing
- The process of originating requests has become digitized to the point where it is time-demanding.
- Lenders can combine this straight-through approach with chatbot channels to provide their clients with a consistent experience.
- STP is used to process requests, which lowers lenders’ operational expenses and allows them to redeploy resources elsewhere.
- Despite the enhanced digitalization brought on by COVID-19, the mortgage sector will need a few years to transition from paper paperwork to fully digital loan origination.
- When numerous versions of a document with the same name exist, determining the most recent and valid version is difficult.
- To complete the process, a lender must open all available versions, extract the appropriate data, and apply business rules.
Because of their risk-averse attitude, traditional mortgage lenders have traditionally found it difficult to innovate. The new digital competitors are brazen and well-equipped technologically. Mortgage lenders have begun to invest in technology that streamlines the onboarding of homebuyers, lowers manual labor and error, and enhances predictability.
The real estate and mortgage industries, as well as individuals who work in them, are always changing. Independent mortgage brokers and loan officers are in a unique position to find loan packages that meet their clients’ demands, so their potential for development in the future year appears endless. Stacey Dowling is a premier pro of Synergy One Lending and provides mortgage loan expertise. For more information, you can contact her at (623) 624-9495