The mortgage loan origination process is human-intensive and time-consuming. At a time when there is so much uncertainty around, there are several challenges the industry may face. However, uncertain times should not be an obstacle to improving the mortgage process.
As we begin 2021 on a positive note, it is time for mortgage lenders who provide mortgage processing services to do the right things that will help close loans faster, improve quality as well as enhance mortgage operations. They can achieve speed, efficiency and security by following these five steps:
Create a Paperless Process for Opening Loans
Mortgage origination is a complex process for borrowers and lenders. Applicants are required to furnish tonnes of paperwork, signatures, and then more paperwork, hurting their customer experience. Delays in the paperwork are one of the quickest ways to frustrate your customers and generate bad publicity for your brand. These delays also lead to bottlenecks in the workflow killing the overall productivity and impacting ROI, by driving up overhead costs and losing customers.
A study from the Consumer Financial Protection Bureau had found that transactions were faster and customer experience was better when a loan was closed using digital means rather than paper. This is in fact a necessity now considering that more than 40 percent of today’s homebuyers are millennials and this generation grew up with smartphones and the internet and is used to filling out paperwork online.
As a mortgage processing servicer, you will need to opt for paperless loan processes to provide a fast and efficient experience that lets borrowers view forms and provide digital signatures through a computer or any mobile device. More importantly, a paperless loan process is also likely to expedite closing. The faster your customers close, the less chances are of the deal falling through. The other seminal benefits of a paperless loan process are cost savings, reduced environmental impact, and increased productivity. There are companies that offer mortgage processing support services to help go paperless through the loan opening process.
Replace Error-Prone Manual Tasks With Automation
There are several distinct advantages that modern automated mortgage processing solutions offer by means of providing a superior customer experience, improving decision-making accuracy, and removing paper documents. Replacing manual steps with technology and transforming paper into digital format enhances the speed and accuracy of loan applications. Technology also helps process a larger number of loan applications with the existing resources while eliminating human errors. It reduces delays and costs associated with paper processes and accelerates the loan performance.
According to a report from Accenture, 20 percent of consumers already conduct all of their banking activities through digital platforms. Since they are already familiar with and trust using digital solutions, lenders who offer mortgage processing services can use similar digital tools for mortgage applications and other complex tasks. In 2021, mortgage companies need to seriously consider replacing manual steps with technology and transforming paper into digital format to guarantee enhanced speed and accuracy in processing loan applications.
Strengthen Security and Compliance
In a constantly changing compliance landscape, good document compliance helps identify competing regulations, establish robust operational process controls, have a better hold over data quality, and strengthen operational strategies. However, hiring full-time teams to watch over the process of compliance with regulatory requirements may prove to be a huge operational cost. It is best to associate with companies that can offer mortgage processing support services to seamlessly enable you to disburse loans that fully meet regulatory requirements.
Be Flexible When Collecting Information
When it comes to facilitating loan approvals, time actually is money. Customers expect a speedy, intuitive loan application process with real-time decisions for mortgages. A smooth and efficacious end-to-end mortgage processing solution is a genuine competitive advantage. The multiple touchpoints between the front and back office in the loan origination system make it a little convoluted. It is important that as a lender you display flexibility while gathering information from customers. In addition to speed, customers now also expect highly personalized experiences. This means providing contextual multi-touch services on both mobile and desktop, providing enough flexibility to customers to make them feel at ease during the process. Joining hands with a company providing mortgage processing support services is an efficient way to navigate through the process.
Design a Frictionless Application Process
In today’s tech-savvy era, customers are often forced to endure processes that have too many unnecessary steps. They may be asked to provide the same information over and over again while waiting for ages to even know if the loan application is going to go through. It is time that lenders put their best foot forward to ensure that every point of interaction between them and the customer is an opportunity to reduce “friction”, contributing to a positive customer experience. The loan process can be made ‘frictionless’ either by re-engineering the steps or by adopting technology that enables new processes. Cumbersome applications and complex processes spanning across several days often leaves customers frustrated and you may end up losing good business. In 2021, you will have to rectify procedures that cause bottlenecks and try to reduce customer friction while simplifying the origination process. You can do so by adopting the right mortgage processing solutions.
In 2021, as a lender who offers mortgage processing services, you can start on a positive note by partnering with companies like PrivoCorp. We are a one-stop-shop for any mortgage processing solutions 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. Get in touch with us today!