2020 has been an amazing year for the mortgage industry, with rates hitting record lows. 2021 too is likely to see low rates with Fannie Mae predicting that average rates for the 30-year fixed loan will remain at 2.8% through 2021 and only rise to 2.9% for 2022. Of course, factors like inflation and the Federal Reserve’s desire to keep rates low will also affect mortgage rates to a great extent in the coming year.
However, as lenders look ahead to a new year and a new administration, there are few themes they can follow to ensure 2021 continues to be a profitable year.
Utilize the Right Kind of Technology to Offer a Stellar Customer Experience
There are several distinct advantages that a modern digitized loan processing system can offer in terms of a superior customer experience, accuracy in decisions, and cutting down on paper documents. With the help of automation, it is possible to accelerate the entire loan cycle process. In the coming year, mortgage companies need to seriously consider replacing manual steps with technology and transforming paper into digital format to provide a better user experience. Doing so will also guarantee enhanced speed and accuracy in processing loan applications.
Leveraging technology, mortgage companies can process a larger number of loan applications with the existing resources while eliminating human errors. In this way, there will be reduced delays as well as lesser operational costs associated along with an improvement in the loan performance leading to efficiency and profitability.
Moreover, a robust tech mechanism can go a long way in sorting through incoming customer requests and allocating them to relevant processors, based on the request. To be truly efficient right now, the best technology must also have a reasonably short onramp.
Engage Effectively with Borrowers
As volumes are bound to increase in 2021, mortgage companies could use support in steering through the process. With larger loan applications come several aspects like managing rigid compliance regulations, stricter deadlines, documentation, closing fees, and costs.
While managing all these is a challenge, it is also important to comprehensively engage with the borrowers and take them into confidence so that the process remains smooth and easy. Proper and in-time communication are some important areas of the mortgage process. Lenders can pick the digital channels of their choice to communicate clearly with their borrowers. By doing so and delivering timely, relevant, and clear communication, they can successfully build trust and stronger relationships with their customers.
Associate with Partners Who Can Offer Optimum Efficiency
In the coming year, it will be important for lenders to join hands with the right kind of partners. In this way, the former can seek proper assistance while dealing with the high purchase and refinance volumes as well as in managing time-consuming tasks in mortgage processing. These niche players or service partners can help with the tailor-made technology and infrastructure that can aid mortgage companies in improving their operational efficiencies while saving time and costs. Service partners are capable of providing the most competent support and scalable services tuned to the exact requirements of lenders. In a sector like BFSI where time is extremely important, service partners are adept at offering flexible services as well as quick onboarding procedures to immediately kickstart operations.
Another important advantage of partnering with an expert service provider is default access to the latest technology. Digitization is extremely important in today’s business world, and more so when it comes to the usually content-heavy mortgage processing work. After associating with the right service partners, mortgage companies do not need to buy the infrastructure directly or worry about the up-gradation and maintenance costs either. Servicers partners help their clients simplify, accelerate, and make their business resilient, even during demanding times. Their fast, automated, high tech solutions help replace repetitive, low-value tasks with touchless processes that deliver better results at superhuman speed.
In turn, the mortgage company team can enjoy error-free and more secured processing because of a reduction in manual processing. They can utilize their free time to focus on the core objectives of their business.=
How PrivoCorp Can Help You Achieve More in 2021
Companies like PrivoCorp offer full-service mortgage solutions that help you save time and costs while giving you a competitive advantage. By partnering with PrivoCorp, you can seek expert back-office support right from Origination to Underwriting to Closing and finally till Post-close. We can help you reduce your closing time by 30% and your operational cost by 50%. We are a one-stop-shop for any mortgage assistance that you may need as we offer a host of mortgage services like pre-processing, processing support, mortgage closing support, mortgage post-closing support, appraisal support, mortgage title support, underwriting support, mortgage software, and many more. Talk to PrivoCorp today!