3 Digital Mortgage Trends Lenders Can't Ignore

You can almost hear it: the sound of paper flying out of lenders’ offices, never to be seen or touched again. 

The digital mortgage experience has been upgraded tremendously over the past few years — becoming faster, more efficient, and easier for all involved parties. Removing sheaves of papers from the equation was just the beginning.

Due to the events of 2020, more and more lenders are turning to intelligent automation solutions and comprehensive data analysis to create streamlined mortgage experiences for their customers. Here are a few features that you should add to your closing process to meet consumer demand.

1. Socially distant closing

With 9 out of 10 lenders offering online applications and online portals to borrowers, it’s clear that the lending experience has shifted away from traditional processes. Today’s borrowers expect fast results, quick answers to their questions and simple application instructions — all from the comfort of their own homes.

Online closing is therefore more important than ever thanks to the benefits it brought to the closing experience in 2020. Removing in-person meetings from the equation became a business necessity, not something that would simply be nice to have. Offering online options may have started as a health and safety matter, but it’s here to stay.

2. Integrated customer information systems

Traditional lending processes miss an important opportunity when returning customers apply for a mortgage. Rather than being greeted as returning valued customers, borrowers are asked to submit their financial information all over again. 

Digital lending platforms that integrate with customer information systems eliminate this blunder and reshape the application experience in a more satisfying way. Borrowers have many lending options today, so knowing your customers is an essential retention tactic. You should be able to offer a welcoming, multichannel experience that feels more like a friendly conversation than a cold business transaction. 

3. Mortgage automation processes

With more intelligent automation, the one-click mortgage experience is getting closer to reality. The benefits of automation extend to both borrowers and lenders. While borrowers get faster answers, you have an opportunity to curb rising origination costs.

Automating processes reduces the amount of time loan officers spend servicing accounts while also limiting exposure to risks like human error. For instance, pre-filling mortgage applications with verified borrower information reduces the likelihood of miskeyed data.

The same can be said for product information. With instant access to a product and pricing engine, loan officers can reduce cycle times. It currently takes an average of 45 to 60 days to close a loan. Automation can narrow that timeframe and get borrowers into their dream homes faster. In fact, adding an eSign solution can shave off approximately 3 days from the average transaction.

In 2021 and beyond, the mortgage experience is not only becoming more digitized, but also optimized. Intelligent automation, real-time access to verified customer data and product information and a stronger customer service mentality will drive the industry forward.

Ready to automate your mortgage experience? Sign up for a free demo of the Roostify platform to learn more.