With recent slow but steady rise in interest rates, we’ve witnessed a steady increase in mortgage industry activities such as construction projects and an increase in home equity bill consolidation lending. According to TransUnion, an estimated 10 million consumers will be applying for a HELOC (home equity line of credit) between 2019 and 2022. Consequently, buyers and lenders will have to be more flexible and exercise more patience in order to navigate the market during that period.
Increased Automation and Digitization of the Mortgage Process
The faster we are able to get bank and credit union documents, the more beneficial it is to both sides of the mortgage equation. Automated digital processes and transactions are considerably more cost-effective overall. Additionally, automation and digitization increase transparency and makes finding critical information much easier where the lender is concerned.
So, look for the mortgage process to be completely automated and digitized over the next couple of years. Furthermore, the more we automate clerical tasks within the mortgage process, the more time can be invested in building stronger, long-term relationships with clients.
Enhancing the Multichannel Borrower Experience
In the past 2 years (2017-18), every loan application included some type of mobile or online component. According a study entitled “Expectations & Experiences: Borrowing and Wealth Management”, statistics have revealed that:
- 67% of all applicants have no problem completing a home loan application on their desktop or laptop
- 29% would be comfortable using their smartphone or tablet to complete a home loan application
Consequently, mortgage lenders are now being challenged to deliver a more compelling yet efficient lending experience. As a result, we’ve seen more lending companies invest in the borrower experience the past year or so.
However, for those lenders who want to enhance the borrower’s experience and overall satisfaction by addressing the numerous lending complexities that exist, the demands are more significant. Although today’s consumer/borrower won’t get up and walk out on a lender who is still talking to them, they won’t have any problem abandoning any online interaction or transaction, especially if it isn’t intuitive or valuable.
The Spotlight is focused on Data
While lenders have always relied on data to help them make better, well-informed decisions, recent technology has enabled to have a 360º industry-wide view of their client’s needs and the lending process. The more lenders are able to get the amount of data, transparency, and visibility correct while at the same time making it more readily accessible, the more it will enable faster decisions and reveal other opportunities within the market.
For additional information about purchasing a home or refinancing your existing home, contact H.O.M.E. Lending at (209) 477-0262, the top-rated mortgage company in the greater Stockton area and Central California.