Digitization has taken over the mortgage industry, enabling the industry to maximize new opportunities. A thorough digital assessment ensures efficient and error-free mortgage lending. Digitally enabled mortgage experience is expected to become the norm as firms across the industry continue to invest in digital innovations. Digitization with the support of a document scanning company is essential to streamline mortgage processes and provide better user experience. With digitization, mortgage documents can be converted into digital format and lender processes improved by reducing clerical tasks.
Digitization and streamlining of mortgage data help to address challenges like regulatory compliance, customer experience, asset quality and risk, efficiency and cost containment.
- Consumer experience: Consumer needs and expectations keep changing and there is a shift towards self-service, two-way information sharing and customized experience. Customers are looking for real estate agents, insurance agents, appraisers and other players in the industry to collaborate and remove friction from the lending process and with a digital platform the mortgage industry can provide better level of delivery without sacrificing loan quality and compliance.
- Efficiency and cost: Over the years, rising regulatory and investor requirements along with legacy technology have made loan origination too manual, time-consuming and error-prone. With digitization, lenders can minimize processing time and create a more engaging customer experience.
- Asset quality and risk: A fully digitized mortgage process can boost accuracy, trust, integration and transparency. It also helps to prevent a reoccurrence of loan buybacks due to the defects in loan quality.
- Regulatory compliance: Lenders must comply with the regulatory requirements for any lending and servicing so that both customers and investors are protected. Lenders must also have a system to monitor and control their regulatory compliance. Digitization allows lenders to further automate compliance processes and remove manual interference.
Digitization Changes Buying and Mortgage Lending During Coronavirus Pandemic
Today, all industries are facing huge losses due to the shutdown caused by the spread of COIVD-19. The mortgage industry is implementing reforms that allows lenders to operate efficiently so that customers can obtain financing.
- Better workflow with digitization: With the outbreak of COVID-19, mortgage lenders are adopting ways to digitize the mortgage process so that consumers have the option of working with loan officers in person as well as through phone or online. The mortgage industry is trying to transform the online digitization and automated underwriting process for borrowers. Consumers are now researching and buying homes online, not wanting to risk their health. Innovative realtors are even offering “drive through closings” in which customers and realtors exchange paperwork and keys while sitting in their own cars.
- Providing consumer relief with scale and speed: Keeping consumers in their homes is top priority for any business at present. Apart from providing loans, lenders also must help consumers pay off the loans as quickly as possible. Many Americans have lost their jobs during this pandemic and are not able to afford their mortgages. So, they are seeking “forbearance,” a payment deferral so that they can get back on their feet and return to a regular payment schedule, and many mortgage firms have seen several such requests. With digitization that makes the entire process of buying and selling easy, mortgage firms can keep their customers home.
- Advanced technology to serve borrowers: During this crisis, customers are keen to know about forbearance programs that are available to them. The increased demand for this option has made mortgage firms rethink how they can serve the customers more efficiently and effectively. Many interact through phone and other via online. AI and chatbots can be implemented for a faster and quicker response.
Digitization in the mortgage industry has helped the firms prioritize things and provide customer-focused service during this pandemic.
Digital transformation has increased innovation of products and services, helped provide better customer services and minimize cost. Lending institutions and mortgage servicers can adopt digital solutions to remain relevant and customer-friendly. Moving from a traditional mortgage model to a digital-solutions-based mortgage model will require the assistance of an experienced document scanning company.