Rise of Technology in the Mortgage Industry
The mortgage industry threw its doors open to the latest technological and digital innovations a few years ago. This has resulted in a sea-change in the way in which the business as a whole has responded. There are two parts to this saga―on the one hand we are witnessing advancements that are dictated by the prevalent competitive scenario; while on the other, these path-breaking modifications were birthed from the conscious decisions of lenders, whose aim was to satisfy the new brand of digital and informed customers.
Technology is ubiquitous. It has permeated various levels of businesses and multiple social channels too. Given this, it is only natural for customers to expect lenders to provide them the facility of purchasing mortgage online. With every passing year, we are witnessing many impressive innovations in mortgage services technology. Each one of these transformations serves to make the choices of customers that much easier.
Tech Trends in the Mortgage Industry
The mortgage industry today is commanded by lead aggregators who are active online. Their job is to gather bits of borrower information, before passing individual borrowers to select lenders. Additionally, a large number of lender websites offer the digitized version of the industry standard application (Form 1003).
To add to all of this, the latest loan origination systems are also available. However, many such technologies have mainly been designed to cater to the needs of mortgage service providers for example loan processors, mortgage loan officers and mortgage professionals.
Let us review a few major trends that are shaping the technological shifts in the industry:
Mortgage sans Paperwork
The moment one thinks of the word “Mortgage” the image that instantly springs to mind is that of paperwork! Yes, be it disclosures or closing, endless rounds of information and signatures have to be entered on reams of paper. But with the latest technological strides, banks are better positioned to understand the advantages of going paperless.
While tons of paper will be available for other uses, customer relationship management teams can build strong bonds with their clientele. Customers can examine their closing and disclosure package in the online format; and subsequently imprint their e-signature. In all of this, establishing robust cooperation online between internal and external stakeholders in the mortgage loan process will be the next big challenge to overcome.
Thrust is on Mobility
Enterprises that do not design their operations for mobile cannot survive in today’s competitive environment. Mobiles and other handheld devices are in many ways the zenith of our current technological achievements. The reason is simple: Globally, more and more people use mobiles to gather information about products and services, than traditional desktops.
This is precisely why one can find dozens of mortgage mobile apps now. The function of each of these apps is varied. While some assist users in tracking the latest mortgage rates, other apps take customers through the entire mortgage origination process. These are indeed welcome additions and scores of customers have derived the benefits by utilizing such apps.
With all the evidence on the ground, clearly, mobile is the way forward for the mortgage industry. It will streamline processes and enable customers to gain a comprehensive view of their requirements.
The onus is on lenders to stay focused in adopting the myriad technologies that have come to the fore today. Customers will be more than happy to manage their finance and accounting needs effectively with the aid of technology. There is no escaping the ultimate digitalization of the mortgage process. Thanks to technology-savvy customers of this era, taking the business online is the easiest and natural thing to do.