Technological advancements have dramatically transformed many industries in the past couple of decades. While a bit later than other industries, the mortgage industry also has experienced a significant number of innovations in recent years. Lenders are now leveraging technology to outdo their competition as well as develop a more customer driven approach.
Because of stringent regulations, borrowers already have to jump through multiple hoops before their loans are sanctioned. In such an environment, it is wise for lenders to up their game before competition gets hold of your customers by delivering better services/experience.
One of the best ways of providing better services would be by leveraging technology and introducing mobile platforms to enhance the borrower’s experience. Mobile apps have been able to large simplify mortgage origination services and thus are instrumental in the increase of e-mortgage applications.
Here are 5 ways, mortgage lenders stand to benefit from having a mobile app as a part of their origination process.
Time is one of the most precious resource you can have. And that is exactly what borrowers are deprived of when they initiate the loan application process
Earlier, borrowers had to go to the lender’s office multiple times:
- To submit loan application
- Submitting rectified documents(sometimes multiple times)
- Additional proofs, if required
- Completion of process
Mobile apps have been able to completely eliminate the need for physical visits and are helping to save time. Now everything can be done conveniently right from the comforts of their homes, office or wherever they happen to be.
Cater to the right audience:
According to a recent study, mobile apps have become one of the highest preferred mediums for consumers to engage with their favorite products and services. Among the audience, millennials are the biggest contributors towards this trend. They are largely dependent on their smartphones that help them take care of a variety of tasks. Everything is literally available on their fingertips.
Thus, e-mortgages are a great fit for these millennials. These individuals are already strapped for time and seek to avoid processes that make them exert their energy, particularly when there are other convenient options.
Today, millennials are stepping into organizations in positions of authority in larger number than ever before. They have the budget and inclination to initiate new mortgages. So, it would be wise to cater to their needs and offer them a medium that best suits them.
Smartphone usage is higher than ever before and just not with millennials but also other previous and the latter generations. A 2017 research says, about 88% of 30-49 years old age group and 74% of 50-64 years age group use smartphones regularly. These age groups have the right purchasing power and are hence a favorable target audience.
Besides, a brick and mortar office of a mortgage lender has a limitation of attracting prospects from limited regions, mostly within a city/locality. But with mobile apps, all of these limitations can be eliminated. With the right publicity and degree of customer satisfaction, the reach of lenders can increase exponentially with a mobile app. Borrowers from any US state can quickly apply for a loan without having to visit any physical office.
Overall superior application experience
As mentioned earlier, mobile apps have made the process of document submissions a breeze. When documents are physically submitted in the lender’s office, there could be a need to re-submit some of them due to certain errors. Even slight mistakes like photo from the identity proof not being clearly visible may need to be replaced. The delay caused due to going back and forth is considerable and can significantly increase the time taken to process and close the loan.
However, with the mobile app in place, the documents can be directly uploaded on the mobile app by the borrower and there are relatively lesser number of errors. These documents are made available to the underwriter or back-office processing team in real time and if there are any discrepancies, such as a missing document or an unclear picture, they can be immediately sorted out. In the past, these documents would have to be couriered to the underwriter, further leading to additional costs and delays.
Mobile platforms ensure that all of these steps take place in a couple of minutes, thus enabling faster closing of loans. Instant digitization of documents required to process loans have overall increase the efficiency of the process and helped lenders serve their customers more.
Integration with other Systems
Mobile platforms when integrated with other systems in a Lender’s technology landscape, create new avenues of innovation. Few key areas of integrated innovations are:
Integration with Loan Origination Systems (LOS) :
Once all necessary documents are uploaded on the mobile, they are directly made available in the loan origination system. Underwriters and back-office processing team can quickly access these documents through the LOS (Loan Origination System) and proceed to the next step. The documents need not be then printed or transferred outside the system. The mobile app can be integrated with the loan origination system so that all documents are digitally available at all times, irrespective of the location or time.
Integration with Optical Character Recognition Systems(OCR) :
OCR is able to scrape data from documents being uploaded, and is able to help analyze, and input data into different systems. For example, a client’s visiting card can be scanned, scraped and updated in the CRM
The sooner mortgage lenders providers adopt this technology, the sooner they will be able to gain traction and competitive advantage in the already competitive market. Simply focusing on reducing costs can no longer be sufficient. Today’s customers need more than that: they want a superior all round experience.
At Visionet with our mobile app, LoanVelocity, we aim to simplify things for the lender and enable him to reach larger number of borrowers. More details about our product here. We will be showcasing LoanVelocity at the upcoming MBA’s Technology Solutions Conference & Expo in Detroit, later this month. Make sure that you catch us there at Booth# 536