With new technologies popping up in many industries, it is important for companies to stay updated on trends so that they don’t miss out on opportunities for improvement. Looking at the mortgage lending industry specifically, this could not be more true. Mortgage technology is changing the mortgage process for the better and both lenders and consumers are seeing the benefits that result from its implementation. Let us take a look at three innovations in mortgage technology that are improving processes and being implemented by many to give their company the best chances to succeed.
The purpose of implementing mortgage technology is to help companies increase their efficiency while also helping to reduce their bottom-line costs. Automating mortgage processes is a great way to do this. It helps companies become more efficient because it reduces the errors that come with human input, allows for faster verification times, and increases the amount of transparency between lenders and borrowers. Costs are also kept at a minimum because of this increased efficiency and streamlining of processes. The funds saved as a result of automation can be allocated to other aspects of the company allowing for even more improvement, it is a can’t-lose situation.
Big data has been utilized in many markets, but it is making great strides in the mortgage industry. It has helped to increase information understanding and accuracy, while also helping to make decision-making easier for lenders. Lenders are now able to better evaluate borrower applications and tailor experiences around each customer and the specifics of their situations, which is well-liked by borrowers. Along with the increases in customer satisfaction, big data has also allowed lenders to speed up the mortgage application process. Lenders are able to compile all necessary information quickly and make well-informed decisions in a fraction of the time that it took in the past.
Many lenders have made taken their data to the “cloud” as it has many benefits that are attractive to them. Simply put, being cloud-based means storing your data on servers on the internet instead of using local servers or company computers. There are two main benefits to this switch. First, it is much cheaper than personally managing data and information, and it makes data easier to access for both lenders and borrowers. Second, it allows for increased self-service and it allows lenders to interact with borrowers easier through cloud applications.
Written by Kourtney Manley, Business Analyst at OnlineApplication