CEO of Absolute Home Mortgage Corp. and Mortgage Automation Technologies, the creator of The BIG Point of Sale.
The pandemic forced most consumer-facing industries to adopt new technologies to survive. From cashless payment options to curbside pickup, retailers and restaurants doubled down on the consumer experience to drive new business. Order takers have been replaced by digital self-service kiosks, organizations have improved profits because of their technological automation and the consumer experience has changed forever through ease of use, speed and simplified consumer friendly interfaces. Unfortunately, many lenders in the mortgage industry have been reluctant to adopt these technologies for their business. Instead, they piece together their solution using individual components, which has led to a convoluted consumer experience.
In the age of fintech and industry specialization, I have seen a growing trend of new technologies in the mortgage industry. The creation of these technologies, created by mortgage lenders for mortgage lenders, present an all-in-one solution that is easy to implement and designed for direct-to-consumer usage. Lenders are looking for experiences developed by industry professionals rather than out-of-touch developers who do not understand the process or system for which they are coding.
As a leader in the mortgage industry, I believe Simplified Consumer Portals are a solution that can keep up with these rapidly changing developments. This portal will improve the consumer experience and streamline back-end processes. Additionally, it will allow consumers to interact with a single portal to digitally complete their income, assets and employment verification when applying for a mortgage. Most consumers have moved to digital online banking, and employers have since advanced web-based HR portals for paystub tracking. The days of consumers providing paper bank statements and pay stubs to qualify for a mortgage are coming to an end.
Simplified consumer portals are easy to use. A consumer applying for a mortgage can select a manual entry path to upload paper statements or a simplified digital path to sync necessary documentation from past applications or outside sources like bank accounts. Consumers can now apply for a mortgage and track all tasks for the transaction in one place, including signature forms and electronic settlements.
Because this technology is created by industry professionals, with both the consumer and mortgage professional in mind, the average time required to complete a home loan application can be reduced to under 15 minutes. Simplified consumer portals are to the home mortgage loan industry what cashless pay and curbside pickup have become to the service and retail industry: namely, a game changer.
Many lenders have yet to adopt the new technologies needed for them to stay relevant. So as lenders look to adopt these new technologies, it would be advantageous for them to favor platforms built by industry professionals, explicitly for mortgage professionals.
Key Considerations For Lenders Considering Consumer Portals
• Integration Capabilities: Ensure the platform can integrate with their existing systems, such as loan origination software and CRM’s, to maintain data consistency.
• Customization Options: The portal should offer customizations for specialty loan product applications and white labeling ability to have the consumer portal in your brand.
• User-Friendly Interface: The platform should be easy for both customers and your team to navigate and manage.
• Responsive Design: It should work seamlessly across various devices, ensuring an optimal experience on desktops, tablets and smartphones.
Addressing Challenges
If it was easy, then every lender would do it. When mortgage lenders decide to make the leap of faith to upgrade, upgrading consumer applications and portals in the mortgage lending industry can be a complex endeavor, and internal challenges must be carefully considered. Here’s how leaders can address these challenges:
• Change Management: Implement a robust change management strategy. Communicate the benefits of the new portal to employees, emphasizing how it will make their jobs easier and more efficient.
• Involvement: Involve employees early in the process. Seek their input on pain points with the current system and incorporate their feedback into the new portal’s design.
• Training and Support: Provide comprehensive training sessions to help employees become comfortable with the new platform. Offer ongoing support and resources to address any questions or issues that arise during the transition.
Considering all the challenges the mortgage industry faces, from regulations, to increased costs and decreased profits, it is time to embrace and adopt new technologies that will revolutionize the home mortgage lending business and simplify the already complex consumer mortgage application process. Not doing so will result in a weakened mortgage industry, unable to meet the demands of new generations of consumers.
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