Coming off a year in which we dealt with one of the unexpected and detrimental events, the Covid-19 pandemic, it is good news to know that many things will change in 2021. The mortgage industry is one that will experience lots of changes and look different starting now. With how technology has been improving in this industry, it will be difficult to find lenders who will continue to do things in the same manner as they did in the past. To better understand the trends in the mortgage industry that will be impactful for 2021, let us take a look at some expected mortgage technology innovations for this year.
The mortgage industry has seen limited changes in its process over the last decade. It hasn’t transitioned to the online setting that many other industries have decided to shift to. It has been an anomaly, but for 2021 this will change. In 2021, fully digital mortgages will start to become more common. Now, industries don’t change overnight, so only very tech-savvy lenders will be able to become fully digital, but almost all lenders will begin to shift. After this year, if lenders aren’t at least attempting to digitalize their process, they might start to see the consequences of falling behind. This will generally result in losing customers because they went to a lender with more convenient processes.
In 2021, we will also see that automation is key for lenders as it does two major things that can be beneficial. The first thing it can do is just make the process easier for both lenders and borrowers. For lenders, automation can really reduce human error during the mortgage process. It is not uncommon for humans to make errors, it is what makes someone human. It is the opposite for automated processes though, as there will be very few errors if any. For borrowers, they will be able to get 24/7 service and easier access to their mortgage accounts. Chatbots are automation tools that can communicate with customers and help them with problems they may have. They don’t need breaks as humans do, so they will always be there to help with the mortgage process. Borrowers can also access their accounts at any time and complete most tasks from their mobile devices. The other major thing automation does is reduce costs. This is the most attractive benefit for lenders as they are always attempting to do this. These are a few of the innovations we will begin to see this year and they will only improve more with time.
Written by Kourtney Manley, Business Analyst at OnlineApplication