HOW TECHNOLOGY IS REINVENTING THE MORTGAGE PROCESS
Meaningful technological innovation is emerging that promises to revolutionize the mortgage-loan industry, including simpler practices for lenders and customers alike. Applications and documents are starting to be handled mostly online, meaning less expensive rates and faster turnaround times. Online data collection also is growing more sophisticated, with information such as credit and work history now being amassed by lenders via computer algorithms. Getting a mortgage probably won’t ever be a one-click process, but with new, up-to-date procedures it indeed can be better and faster. Here, some ways technology is enhancing the mortgage industry.
Improved borrower experience
The mortgage process is largely driven by documents, with loan files that often can surpass 500 pages. For applicants, this means filling out dozens of paper forms, unearthing documents and financial records, and then scanning or faxing them to the lender. As the process becomes increasingly digitized, however, required information such as bank account activity, credit details, tax forms and pay stubs can be prefilled easily into an online loan-application form. Because data is independently verified from the source, lenders can confirm quickly that the provided information is timely and accurate, speeding up the review process. Mobile offerings also are providing unparalleled access to borrowers—from initially completing the loan application to submitting, reviewing and e-signing documents.
Prospective homebuyers are starting to gain entry into the loan process, allowing them to see much of the same information as loan officers in real-time. This level of transparency allows borrowers to obtain a full list of documentation requirements upfront, as well as to receive any subsequent requests. Borrowers also can have around-the-clock access to their loan status via their mobile devices.
Help readily available
Technology is modernizing the mortgage process and offering borrowers a quick, mobile experience thanks to intuitive design and direct-to-source connectivity. Applicants now are able to navigate through a self-guided experience, while being offered real-time assistance from their designated loan officers. Rather than lenders extracting documentation, borrowers can serve themselves, all the while knowing that expert help is only one click away.
Advancements in automated rules and workflow intelligence are enabling lenders to ensure full compliance, especially regarding the ‘Know Before You Owe’ mortgage-disclosure rule. This regulation was designed to make it easier for consumers to understand their loan options. For lenders, however, the rule requires extensive tracking of received data and outgoing notifications to ensure that consumers are sent a written estimate of their loan terms and fees within the required three-day business period. With recent technological developments, lenders can automatically trigger the generation and delivery of electronic disclosures as soon as they receive information.