Technology is intertwined in almost every aspect of our lives nowadays. Technological innovations have streamlined various parts of our casual and professional lives. In real estate especially, mortgage technology is boosting some companies far ahead of others in terms of efficiency, reliability and consumer satisfaction. Mortgage businesses today need to keep up with tech trends and become unafraid to take steps into a seemingly unknown future with new technology.
Automation and digital mortgages are the current innovations disrupting the industry. According to a 2016 JD Powers study, 62% of respondents under 35 completed their mortgage application using a mobile app. The ability to instantly apply for loans from anywhere has become the expectation among consumers. It’s no longer the competitive advantage that sets your company apart, it’s the competitive necessity that’s required for survival in today’s industry.
Greater transparency is also an increasingly successful trend exhibited by some of the stronger and more lucrative mortgage companies. Kristin Messerli at HousingWire describes the value of transparency when reaching millennial buyers as crucial. “Honesty — or the act of sharing when asked — is not enough in today’s marketplace. Lenders must be ahead of the consumer in providing them with information and a transparent transaction,” Messerli and co-author Dave Savage write.
Mortgage technology can also streamline employee productivity and increase profit margins. Although many mortgage companies remain fearful that technology is a risky investment, it is one worth making for long-term results.
Every lender should be looking at technology to improve their business, workflow and success rate. Messerli and Savage at REwired do a fantastic job of laying out different categories of technology every lender should be considering. Check out the first three below or visit their blog for the full list.
Loan origination system (LOS): The LOS manages the transaction and disclosures. When choosing an LOS, lenders consider price, user needs (i.e. are loan officers involved or only processors?), ability to automate, and ability to integrate with other technologies.
Product pricing engine (PPE): The PPE is designed to help a lender manage a lot of different products and pricing options and give the end user (an LO) a simple interface to see all the eligible pricing options. The most important consideration in choosing a PPE is its ability integrate with the LOS.
Business intelligence (BI): Business intelligence platforms allow lenders to consolidate disparate data sources like LOS, pricing engine, accounting data, and CRM data, and run business analytics to gain business intelligence and run better engines. The majority of lenders are doing this but most are just analyzing the LOS data and using it to drive milestones and understand the ranking of their LOs, quality of applications, etc. Next level application of BI is to see which LOs are the most profitable by pulling accounting data as well.