Mortgage Processing In The age of Amazon
We are living in a world where getting goods delivered with a simple click of a button is becoming a norm. Customers have heightened expectations when it comes to choice, which is why mortgage companies work hard to provide better options to stay competitive. Our lives have become increasingly intertwined with this web of digitalization. It was only a matter of time before the process of getting a mortgage adapted to this change. Every single aspect of acquiring mortgages has grown – from research and discovery of loan applications, qualifications, approvals, etc. These changes in consumer needs have made it necessary now more than ever to implement an effective digital mortgage strategy.
Borrowers are increasingly cognizant of digital experiences and demand a seamless lending process. The mortgage industry is now paying heed to this demand. According to a study by J.D. Power, 43% of mortgage borrowers applied digitally in 2017, versus just 28% in 2016. With the continuous evolution of technology, mortgage companies are looking to evolve with it. Keeping up with a customer-centric strategy, companies are now willing to invest in building an online experience for their borrowers.
Lenders who have invested are already seeing benefits by meeting borrower expectations with the majority of investments in consumer-facing technology. According to Fannie Mae, by the end of 2019, 41% of lenders had prioritized investments in consumer-facing technology. Since then, lenders are rolling out online application portals, apps and becoming more mobile. However, once data from the potential borrower gets to the lender, it’s a completely different story.
While lenders acknowledge the importance of operational technologies in their back office, it is still an afterthought when it comes to planning and budgeting. The multiple operational teams that are involved in the mortgage origination process find the path of least resistance to get their work done. Resulting in a communication vacuum between teams. The situation is further exacerbated when personnel tries to patch together a solution themselves. This is done without taking the holistic view of the entire technology adoption adhering to defined business processes. Without well defined and optimized back-office processes, the people working on borrower data face obstacles. This creates a conundrum when relaying information between all of the parties involved – loan officers, processors, underwriters and other stakeholders. Being able to relay information effectively between these parties is important to making processes more efficient for lenders.
Having a robust digital mortgage strategy will allow lenders to improve their process efficiency. Lenders must consider a scalable digital mortgage strategy, instead of relying on plug and play tools. Your process shouldn’t adapt itself for tools, but rather your tools should fit into your process. If you have yet to develop a strategic roadmap of technology that is something that should be created now. Mortgage companies who have digital strategies that incorporate people and processes have a competitive advantage. We understand that developing a digital mortgage strategy that fits within a broader corporate vision can be overwhelming. Forging strategic partnerships can help to build a digital mortgage strategy that aligns with your broader corporate strategy. At Indica Digital, we can help with creating a digital mortgage strategy that’s right for your company.
About The Author
Senior Web Application Developer
Kaustubh is a Senior Web Developer and Digital Strategist at Indica Digital as well as an adjunct instructor at High School Technology Services in Washington D.C. With a focus on Business Process Automation, API development, and systems integration, Kaustubh is often sought out to consult with business owners and provide them with the insight and tools needed to overcome digital challenges and drive optimal results.