Tech Take
Third-party technology and data providers, combined with in-house IT staffs who are aware of a particular company’s policies and procedures, are streamlining more parts of the mortgage process. The mortgage industry has been adopting technology to streamline the process of a borrower obtaining financing, with the aim of making the consumer experience better than it was ten years ago. Or six months ago.
There are limits, however, and no one is expecting individual MLOs to become extinct. But borrower expectations for digital engagement have risen dramatically in recent years. And although it would be nice to snap up a home loan in less than five minutes like we do airline reservations, we aren’t there yet. Customers like speed, but what if the sellers of the home can’t move for 30 days? Or it is going to take two weeks for the appraiser to come out?
Mortgage customer satisfaction is now monitored by companies like The STRATMOR Group. Unfortunately, there continues to be much room for improvement, especially compared with adjacent products and other industries. Many lenders have been able to provide a smoother mortgage-application experience by digitizing the front-end platform, the digitization of the industry remains incomplete and we can expect lenders to spend revenue in this area. Many origination and servicing processes are still slow, manual, labor intensive, and fragmented, therefore ripe for disruption.
Third-party technology and data providers are streamlining more parts of the mortgage process, and lenders will spend money to make sure that this is done right. Bank and nonbank lenders have invested in either proprietary or third-party technologies across various parts of the value chain to help with a number of processes. Initiatives include front-end platform modernization, workflow management, document extraction and management, income and asset verification, employment verification, title verification, appraisal management, e-closings, automated compliance, and decisioning. These software solutions are designed to speed up the mortgage-application process, lower costs for the lender, and improve the overall customer experience.