When it comes to technology, thinking like a loan officer — and borrower — might drive mortgage companies to make choices that will bring in heftier profits and happier customers, leading originators say.
"The president of our company used to be a loan officer. The management understands the importance of us being able to get back to consumers and back to Realtors quickly," said
Research released earlier this year by point-of-sale software provider Floify supports what many originators say about the importance of quality technology for their success. Nearly 90% of top
Lenders looking to upgrade technology infrastructure don't necessarily need to aim for a complete overhaul or see it as a complicated or costly exercise.
"Modern technology does allow older technologies to talk to newer technologies more easily. You don't always have to go replace things from the ground up," said Sridhar Sharma, chief information officer at Mr. Cooper.
"There might be good reasons to do that. But you also have modern technology that allows you to integrate systems much more seamlessly than ever before," Sharma added.
As impressive as the newest software can be, simplicity may also be as big a selling point for technology purchases as any other feature to some originators.
"We're not experts in IT," said California-based Kathleen Beck, lender at Open Mortgage. "It has to be simple. It has to be usable."
Below we share the software functionalities that are of greatest importance to some of the most critical figures in your business.
Connecting to the sources
As all parties in a transaction increasingly have the option to send their forms electronically, loan officers are viewing secure document collection more and more as a must-have. In Floify's survey, 93% of producers signaled a secure document portal was high on their wish lists.
Having loan origination systems integrated with platforms where clients can submit documents electronically is "one of the biggest helps to my business," Beck said. The security within the platforms also gives her peace of mind that personal information won't be compromised. Technology platforms offered by the likes of Floify, Ncino and Maxwell all facilitate document upload.
"They can upload documents after hours. They can do all kinds of stuff," Beck said. "It's been wonderful."
Coming onto the scene are systems allowing the loan officer to verify information and assets directly through access to the original sources,
But the ability to submit forms and information at any time of the day is also at the loan officer's disposal,
"Being mobile with your cell phone is probably what I appreciate the most," Bigelman said.
"Twenty years ago when I had to send a preapproval, I had to stop what I was doing, go to my office or my house and fax a preapproval over. Now I can do it from my phone. I can access my system. I can access the customer's information. I can send a preapproval in a PDF right from my phone wherever I am in the world," he added.
Stepping into the borrower's shoesWhile making the mortgage process easier for the originator may pave the way for more sales, don't ignore the most important stakeholder in a transaction —
In particular, home buyers are likely encountering unfamiliar terms and new companies for the first time. Technology that serves the borrower, as well as the originator, will provide a less daunting experience for all involved.
"We're not dealing with professional home buyers always. We're not dealing with professional borrowers," said Shadi Kamran, national business development and market growth executive at Certainty Home Lending.
"With technology, you're able to immediately communicate these aspects of the loan that they need to make a decision on, so that they can make that decision," he said.
Tools with proper transparency to inform clients of the progress of a loan application will help them meet milestones necessary for a home purchase, he said. Kamran also originates loans primarily in Southern California.
"It makes it move quicker, not because we're trying to push it along, but because they're able to understand the information, and they can make a decision quicker, which allows them the time to do the rest of the due diligence that they need for the purchase."
Having transparent tools that also alerts loan officers of any possible problems to enable better communication as well. "It gives me more touch points, too," Beck said.
Building more transparency into the technology becomes even more important when lenders are working with more complicated products, such as non-QM or bank statement loans, according to Kamran.
With more instances of nontraditional income streams today, "Technology has to keep up with these, and I think we do a great job of ensuring that our technology recognizes these different paths of applying for a mortgage," he said.
Don't forget the marketing
While the value of digital technology from originations through closing and servicing are often the focus of attention at mortgage businesses, originators also appreciate when marketing tools in their tech stacks can bring the borrower to the table.
Easy-to-use customer-relationship management systems are paramount. At the same time, tools offered by the likes of Bombbomb, Storyy and Idomoo that help a loan officer build social media campaigns through video and find leads are growing in importance in a digital consumer marketplace.
"I'm doing a lot to push technology that way," Bigelman said. I think people love those," he said of the videos he creates, noting they help build his reputation as a credible resource.
"You need to establish the relationships. That's where the tech, in that regard, is to me."
