Though the COVID-19 outbreak has affected all sectors of the economy, it has particularly exposed glaring needs within the mortgage industry. These changes will undoubtedly rewrite many of the industry’s “traditional” practices moving forward into the rest of 2021 and establish a “neo-normal” standard going into 2022.
Among the battery of revelations, digital transformation and customer experience have become industry-wide focal points caused by the pandemic.
According to a recent Forbes Report: Nearly 90% of lending executives stated that the pandemic is proving a powerful catalyst for digitizing their firm’s mortgage processes, and 85% described their efforts for mortgage process digitization before COVID-19 as aggressive.
As a former Loan Officer, I was forced to use dozens of workarounds due to inherent flaws within the systems that I – and the majority of LO’s in the industry – were forced to use. Developments in recent years have addressed those limitations to a certain extent, but at a fundamental level – things need to change.
Looking back at the early 2000s and then fast-forwarding to today, it’s amazing to witness all the functionality that helps automate the mortgage lending process. Back in 2003, the average loan closing time was somewhere between 30-45 days. Although technology has changed much of the world since 2000, it is astonishing that the most important metric has stayed roughly the same.
Today, it takes just 2 hours to walk in and out of a Maserati dealership with a $150,000 car financed and ready to go. Why does it still take 30-45 days to finance a $150,000 mortgage?
Let’s rephrase that question – why has the “time-to-close” mortgage stayed the same after all this time?
In an era where customer expectations have never been higher for next-gen digital solutions, the mortgage loan process remains highly dependent on disparate systems. The size and complexity of mortgage applications make it nearly impossible to eliminate manual work. The need for process automation is great, not just to provide more satisfying mortgage experiences, but also to significantly increase productivity, reduce operational costs and minimize the impact of human error. It’s a win-win for both mortgage providers and borrowers.
Lenders can automate the mortgage origination process and upgrade their “traditional” methods of processing with “neo-normal” digital solutions. A sophisticated process solution will allow lenders to simplify the application cycle. Furthermore, enabling real-time integrations of all associated parties by using loan origination systems (LOS) to exchange data between applications can significantly bring down the loan-processing time from weeks to days.
Put simply, an efficient automation process can lead to shorter loan processing and overall better customer experiences. Sometimes, in order to make forward progress, you must be willing to let go of what’s holding you back. Indeed, automation has vast potential in the mortgage industry, just waiting to be tapped.
Adapt, Survive and Thrive
What should mortgage companies focus on in this new technology-enabled environment? What are the benefits that really matter? What technological capabilities should they pursue?
Disruptive technology closes the gap and helps lenders create positive customer experiences, for both borrowers and loan officers. Tavant is able to turbo-charge this process, creating unforgettably satisfying customer experiences.
We welcome you to contact us at [email protected] and/or learn more about Tavant VΞLOX, the industry’s leading AI-powered digital lending platform.
