Four Ways Technology Improves The Mortgage Loan Life Cycle
The entire mortgage industry is evolving rapidly as the market shifts once again, regulations continue changing significantly, and technology becomes a more widely accepted part of creating a safer and more efficient mortgage production cycle. Our industry has been slower than most other industries to adopt technology on a comprehensive scale, simply by virtue of the highly confidential and highly regulated nature of our work product, and the potentially high legal stakes for errors. As more efficiently integrated systems become available and proven security measures are incorporated, though, the routine use of technology in the mortgage industry is moving from an optional convenience toward a routine practice without which providers will be left behind.
- Streamlined Processing – The timelines for every step of the mortgage production process are shortening, and the requirements for more precision are, too. Anyone who has worked in the mortgage industry in almost any capacity will recognize immediately that rushing leads to mistakes, and mistakes are becoming more and more costly. Adopting practices that reduce the chances for human errors like data entry or calculation mistakes helps, and the automated processes that accomplish that also speed repetitive tasks like forms generation.
- More Efficient Collaboration – There are numerous parties and partners involved in producing each and every mortgage, and every link in that chain is a potential point of failure. Using technology that standardizes procedures across the chain helps keep collaborative efforts running smoothly and ensures that all concerned parties (and only those parties) have access to the information they need, when they need it. Collaborative technologies also offer loan originators better insight into the performance and reliability of their partners and gives service providers a way to offer added value to loan originators who are now legally liable for the accuracy of their partners’ work.
- Improved Underwriting – Underwriting has traditionally been a point of slow-down in the mortgage production cycle because of the laborious research involved in determining a borrower’s long-term ability to pay. As technology makes more data available to underwriters and provides ways to analyze that data in a useful and reliable way, underwriters and their service providers will have a faster way to more accurately characterize a given borrower’s profile and ability to repay the loans they are requesting.
- Better Engagement Across The Board – We tend to think of borrowers when we hear the term “engagement,” but in truth, we should be considering every person involved with our transactions, from our own employees to those of our service providers, as well as lenders and customers, because reliably excellent customer service comes from engaged employees. Some industries which were quicker to adopt technology are now learning that those technologies in some cases actually made the workflow more complicated and aggravating for employees to deal with, and their employee engagement is abysmal. Ease of use is an important consideration in choosing technology for your business. Take care of your employees and partners and they’ll take care of your customers.