Mortgage lenders have started to welcome and incorporate new technology in the process of applying for a loan. This is a refreshing change from the expected process of lengthy in-person meetings, compiling and transporting of all financial documents, and a slow approval process. New lenders are starting to enter the mortgage game around an automated platform.
“In the last 18 months, we’ve really started seeing where things have gotten easier,” describes Tom Rhodes, CEO of Sente Mortgage, a Texas-based lender that opened just in time for the housing bubble burst in 2007. “Companies are using big data, companies are using more automated systems / processes and using technology to produce a smoother experience.”
Four important points to understand about the move towards technology in the mortgage process are as follows:
Options go beyond the online form.
A key component of the mortgage industry’s evolution is automation; not just allowing you to fill out forms online, but also granting access to financial and employment backgrounds without requiring repetitive work for you.
By streamlining that process, mortgage lending moves away from a transactional business and “turns into a relationship business,” says Dom Marchetti, chief technology officer for loanDepot, a technology-focused lender.
Traditional lenders, banks in particular, are beginning to automate their processes as well. The online platforms are designed to provide detailed updates about your application, approval process and often allow the lendee to e-sign documents to save both parties from adding more meetings to an already long list of sit down meetings that can take place in the homebuying process.
Face to Face options will remain.
Not every consumer will feel comfortable using the online only approach to applying for a mortgage. Whether this is due to technology literacy or frankly just enjoying meeting in person with your mortgage lender, the face to face option will continue to be available to meet the needs of the consumer.
Security and Protection is a Dominant Focus.
Knowing how much valuable information is compiled during the mortgage approval process, companies are taking measures to reduce the chances of data being compromised and their sites being hacked. Especially for companies specializing in the tech aspect, securing your information is a major part of the job – and it’s an ongoing process.
But the greater level of protection isn’t just for the consumer’s benefit – the automated process itself allows for heightened transparency between the borrower and lender, cutting down on potential for fraudulent information being given to the lender, says Dom Marchetti, chief technology officer for loanDepot, a technology-focused lender.
The Industry is Positioned for Technological Growth.
The mortgage industry is only in the beginning stages of technological growth, especially compared to industries like travel and banking to name a few. Homebuyers and other borrowers can reasonably expect for automation in verification of employment and financial history to expand to cover more people as technologies develop and a larger portion of the industry gets on board.
Further behind-the-scenes automation means the loan approval process can be streamlined and made more accurate. Already, Fannie Mae's Automated Property Service uses its extensive information to provide a predicted property value and a confidence score to be used as a factor when considering eligibility for the Home Affordable Modification Program. As more major industry players support a more transparent process, small and large lenders nationwide will be able to automate more as well.
With so many changes happening in the mortgage and lending industry, we know it is tough to complete the task of financing. SETCO Services has implemented top tier processes, procedures, and software tools that are now the cornerstone for SETCO Service’s future growth. Please visit our Lenders Information page to view and utilize some of our lender tools that we have created and implemented for our clients.
If you have concerns or need more information on the mortgage and closing process, please contact us!