Mortgage lenders must be nimble, adaptable, and innovative, which can seem next to impossible in a turbulent market. Luckily, lenders can use mortgage technology to better navigate challenging environments. Implementing seamless digital solutions can help lenders thrive in the short-term while setting their businesses up for long-term success. The housing and mortgage markets will always ebb and flow. But the right tech stack can help lenders stay the course.
1. Adopt a mobile application to facilitate referrals and enhance communication
Strong relationships are critical in any market, and the right digital solution can help you build and nurture them. Adding a tool that unites the borrower, loan officer, and partners together enhances communication and improves efficiency. Now is the time to implement new technology, while your loan officers have more time to focus on adoption and reconnecting with real estate agents.
A loan officer’s level of communication during the lending process is crucial to whether their borrowers view them as a trusted advisor. A shareable mobile app can help lenders stand out to both borrowers and real estate professionals with capabilities such as:
- Integrated Home search
- Payment Calculators
- Instant Chat
- Automated Milestone Notifications
- Dynamic Pre-Qual Letters
- Document Status Visibility for Partners
2. Save on labor costs and create lasting impressions with paperless closings
Errors in the closing process can lead to significant delays and labor costs. Hybrid and full eClose offer significant opportunities to improve quality control, streamline the closing process, and optimize closing departments. In fact, a full eClose may save lenders approximately $444 per loan and shave seven days from the processing and funding cycle time.
Remote Online Notarization (RON) is another tool at lenders’ disposal to cut down time at the closing table while leaving borrowers with a positive closing experience. With this capability, documents can be electronically signed by the borrower in a secure video call ceremony with a notary. Lenders deliver loans faster to the secondary market, and borrowers enjoy the convenience of RON combined with eClosing.
What’s more, the appetite for eNotes has risen, which is good news for lenders. eNotes reduce time, are more secure than paper, and can eliminate costs related to creating, shipping, and storing paper notes. Before an eNote is entered into the MERS® eRegistry, the eVault validates document integrity and protects it with a tamper-evident seal. Then with direct integration to the MERS® eRegistry, the eNote is transferred and registered, unlike paper delivery which can take days. Plus, investors find eNotes valuable due to their lower costs of handling, greater transparency, and better loan quality.
3. Drive production & performance with the right incentive compensation engine
Total loan production expenses are at an all-time high of over $10,600 per loan. As the single largest loan origination expense, compensation has a direct impact on profitability and performance. And, having the right mix of incentive compensation plans and team visibility into those plans can facilitate recruitment and retention efforts, enable you to scale your business, and drive behavior. Lenders who leverage incentive compensation management solutions designed for mortgage lending can streamline accurate compensation processing and avoid over/underpayments, gain insight into performance, and evaluate and fine-tune plans to preserve margins. Plus, a robust compensation engine is a valuable tool for retaining and rewarding top producers.
4. Utilize data insights and analytics to deploy unified data strategies
In today’s market, reliable tools to facilitate data-driven decision making are essential. Lenders who utilize turnkey business intelligence designed specifically for mortgage lenders have insight into key data, such as who is sending you business, what your active pipeline looks like, how profitable your loans are, who your top producers are, how production is trending, and how much you are paying in loan compensation. Having your pulse on this valuable productivity and profitability information will enable you to compare projections to actuals, monitor performance, define best practices, prioritize activities, and differentiate your business.
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