Blog 01

The mortgage industry has been plagued by cycles of boom and bust for many years. These cycles can be caused by a variety of factors, such as changes in interest rates, the availability of credit, and shifts in the broader economy. As a result, executives and senior managers are under constant pressure to improve their processes and reduce costs while maintaining compliance and delivering value to customers. To address these challenges, they have identified several key steps that can help the industry better navigate these cycles. We’ll examine and explore how to apply them to create a more stable and successful mortgage industry.

Invest in Platforms to Allow Faster and More Flexible Transition to New Mortgage Product Offerings

According to a survey of executives and senior managers in the mortgage industry, 76% believe that investing in platforms to allow a faster and more flexible ramp up to new mortgage product offerings is a key step to address boom-and-bust cycles. This is particularly important in today's fast-paced environment, where new mortgage products are constantly being introduced to meet the changing needs of consumers. By investing in such platforms, mortgage companies can stay ahead of the curve and offer products that meet customer demand while keeping costs low.

Automate The Verification Process to Enable Humans to Work on Higher Value Tasks

By automating routine tasks such as income verification and credit checks, lenders can free up their staff to focus on higher value tasks, such as customer service and underwriting. This not only improves efficiency, but also ensures that staff are able to provide better service to customers, which is critical in a competitive marketplace.

Invest in Solutions That Speed up Processing Unconventional Borrowers

The mortgage industry has traditionally focused on traditional borrowers with a strong credit history. However, there is a growing demand for mortgages from non-traditional borrowers, such as those with a low credit score or irregular income. More and more borrowers are using alternative lending sources to finance their homes, like peer-to-peer lending platforms. By investing in solutions that can speed up the processing of these borrowers, mortgage companies can tap into a new market and meet the needs of a broader customer base.

Implement an All-Digital, End-to-End Workflow

Historically, the mortgage industry has relied on paper-based processes that can be slow and error-prone. By implementing an all-digital workflow, mortgage companies can reduce costs, improve efficiency, and provide a better customer experience. An all-digital workflow can help streamline the entire mortgage process, from application to closing, and reduce the time it takes to close a loan. 

Enable Faster Ramp Up and Spin Down in Number of Staff 

This is crucial because the mortgage industry is very cyclical and the demand for loans can vary greatly depending on the state of the market. Lenders can more effectively control their costs and react to market changes by having the flexibility to quickly change their staffing levels.

Keep Core Functions for Employees and Outsource More Work 

This approach allows companies to retain their core competencies while outsourcing non-core functions to third-party vendors. By doing so, mortgage companies can reduce costs and focus on what they do best.

In conclusion, mortgage companies can be more efficient and better positioned to navigate the ever-changing mortgage landscape by investing in platforms that allow for faster and more flexible ramp up to new mortgage product offerings, automating verification processes and investing in solutions that speed up processing of unconventional borrowers.